FABM2_ONLINE_QUIZ

A corporate treasurer manages a ₱1,000,000 corporate fund and wants to achieve a high interest yield without exposing the principal to market risk for a fixed 18-month period. Which account type is the most strategically appropriate given these constraints?

• Savings Account, as it is the easiest to maintain with high liquidity.

• Time Deposit (TD), as it offers higher, fixed interest in exchange for a contracted period of non-withdrawal.

• Unit Investment Trusts Fund (UITF), as it offers high potential returns while prioritizing liquidity.

• Checking Account, as it allows immediate access to funds via checks for business operations.

A company, registered with the Securities and Exchange Commission (SEC), attempts to open a corporate account. Which requirement distinguishes this account from a simple individual deposit account, based on its legal nature?

• Presenting a photo-bearing identification card of the signatory.

• Requiring a minimum deposit balance.

• Submitting the Articles of Incorporation and a Secretary’s Certificate authorizing the account opening.

• Providing a utility bill as proof of business address.

An investor receives a Confirmation of Participation instead of a Certificate of Time Deposit (CTD). What does this distinction fundamentally imply about the nature of the investment?

• The investment earns compound interest instead of simple interest.

• The client holds units in a pooled fund (UITF) and is exposed to market risk, not a fixed-rate deposit obligation.

• The funds are held in a Checking Account and are immediately available for check writing.

• The client is legally entitled to withdraw the money before the term maturity without penalty.

A person named Juan is paid by check. The check is drawn on ABC Bank and is signed by Maria. If Juan successfully cashes the check, who is the Drawee?

• Maria, because she ordered the payment.

• Juan, because he received the payment

• The bank where Juan cashed the check.

• ABC Bank, because it is ordered to pay the money.

Which bank account structure presents the lowest trade-off between liquidity and return, meaning it offers high accessibility while still providing a moderate, non-market-dependent interest rate?

• Time Deposits

• Checking Accounts

• Unit Investment Trusts Funds

• Savings Accounts

In the accounting control framework, a deposit slip transitions from a mere request form to an official source document for a journal entry when it achieves what status?

• When the depositor completes and signs the form.

• When the bank teller receives the cash and checks.

• When it is validated with the bank teller’s signature, initials, or machine validation, confirming the bank has processed the transaction.

• When the amount is verbally confirmed by the bank manager.

A business is depositing ₱50,000 worth of checks. If the business fails to complete the back of the check before depositing, which essential requirement is violated?

• The Drawer’s signature requirement.

• The Drawee bank’s acceptance protocol.

• The requirement for endorsement, which legally transfers ownership of the check to the bank for collection.

• The bank’s routing number requirement.

What specific piece of information must appear on a Withdrawal Slip for a Passbook Savings Account that is not necessary for a typical Deposit Slip?

• The exact amount of cash and coins being transacted.

• The current date and bank branch name.

• The account number of the depositor.

• The signature of the authorized representative, which acts as an order to the bank to release funds.

During a withdrawal transaction, the teller's role in verifying the signature against the bank's records before releasing funds is primarily an exercise of which core banking function?

• Regulatory compliance.

• Internal control and fraud prevention, ensuring the Drawer’s order is authentic.

• Accounting record-keeping accuracy.

• Liquidity management.

Why is it essential to record the check number and the name of the issuing bank on the deposit slip when depositing a check, even though the total cash amount is what changes the balance?

• To comply with anti-money laundering regulations.

• To provide a clear audit trail for the eventual reconciliation of the depositor’s book balance with the bank statement.

• To allow the bank to process the transaction faster than cash deposits.

• To immediately calculate interest income on the deposit.