INTELLECTUAL PROPERTY CODE MCQs

Trademark

1. Which of the following is false regarding trademarks?

a. Shapes may be registered as trademarks even if the shapes are
necessitated by technical factors or by the nature of the goods themselves
or factors that affect their intrinsic value.
b. The coat of arms of Malaysia cannot be registered as a trademark in the
Philippines.
c. Petra Hawpia sought registration of its trademark "Lionpas" used on
medical plaster which was opposed by Marvex because registration of
such trademark would violate its right to and interest in the trademark
"SALONPAS" used on another medicated plaster and that both
trademarks when used on medicated plaster would mislead the public as
they are confusingly similar. The similarity of sound is sufficient ground for
this. Thus, the registration of Lionpas cannot be given due course.
d. All of the statements are false regarding trademarks.

2. Marks that is identical with a registered mark belonging to a different proprietor or

a mark with an earlier filing or priority date cannot be registered. Which of the
following choices with respect to this is not included?
a. The same goods or services
b. Closely related goods or services. If it nearly resembles such a mark as to
be likely to deceive or cause confusion
c. All of the above

3. Statement 1: The subject matter of the right of trademark are the goods
manufactured or produced.

Statement 2: The rights in a mark shall be acquired through prescription.

Statement 3: Mark includes a stamped or marked container of goods.

a. Only 1 statement is true.

b. Only two statements are false.
c. Only two statements are true.
d. All of the statements are true.

4. Under this doctrine, a word or phrase originally incapable of exclusive

appropriation, because geographical or otherwise descriptive might nevertheless
 have been used so long and so exclusively by one producer, the word or phrase
has come to mean that the article was his produce.
a. Trademark Doctrine
b. Doctrine of alter ego
c. Doctrine of secondary meaning
d. Doctrine of outside appearance

5. The duration of protection and rights to a trademark shall be:

a. 5 years and renewable
b. 10 years and renewable
c. 5 years and non-renewable
d. 10 years and non-renewable

6. When shall a declaration of use be filed?

a. within 1 year from date of renewal
b. within 1 year from the 5th anniversary of the registration
c. within 3 years from filing date of application
d. DAU shall be filed on all dates mentioned above

7. Statement I: No registration is necessary in trademark infringement

Statement II: Fraudulent intent is necessary in trademark infringement

a. Both statements are true

b. Only 1 statement is true
c. Both statements are false

8. It considers the entirety of the marks in question

a. Holistic test
b. Dominancy test
c. Totality test
d. Both a and c
Copyright

9. It is the transfer of possession of the original or a copy of a work or sound

recording for a limited period, for non-profit purposes, and by an institution the
services of which are available to the public.
a. Rental
b. Public Lending
c. Lease to the Public
d. Government Lending

10. It is a work which has been created by two (2) or more natural persons at the
initiative and under the direction of another with the understanding that it will be
disclosed by the latter under his own name and that contributing natural persons
will not be identified.
a. Collective Project
b. Collected Work
c. Contributive Work
d. Collective Work

11. Statement 1: The publication/republication in a public document by the

government of any work in which copyright is subsisting shall be taken to cause
any abridgment or annulment of the copyright or to authorize any use or
appropriation of such work without the consent of the copyright owner

Statement 2: The publisher shall have a copyright consisting merely of the right
of reproduction of the typographical arrangement of the published edition of the
work in addition to the right to publish granted to him by the author, his heirs or
assigns.

a. Both statements are true.

b. Both statements are false
c. Only statement 1 is true.
d. Only statement 2 is true.

12. The economic rights of an author shall consist of the exclusive right to carry out,
authorize or prevent the following acts except:

a. Dramatization, translation, adaptation, abridgment, arrangement or

other transformation of the work
b. The first public distribution of the original and each copy of the work by
sale or other forms of transfer of ownership
c. Public display of the original or a copy of the work
 d. Reproduction or distribution of published articles or materials in a
specialized format exclusively for the use of the blind, visually- and
reading-impaired persons

13. Statement 1: Original literary and artistic works, copyright shall belong to the
author of the work.
Statement 2: In the case of work created by an author during and in the course of
his employment, the copyright shall belong to the employer, if the creation of the
object of copyright is not a part of his regular duties even if the employee uses
the time, facilities and materials of the employer.

a. Only statement 1 is correct.

b. Only statement 2 is correct.
c. Both statements are correct.
d. Both statements are incorrect.

14. Jason was commissioned by Angel to draw her portrait wearing her wedding
dress. Upon completion of the work, Angel paid Jason P15,000. Who shall have
the ownership of the copyright?

a. Jason because there is a written stipulation that he shall have the

ownership.
b. Denise because the person who so commissioned the work shall have
ownership.
c. Jason because in case of commissioned works the copyright shall remain
with the creator.
d. None of the above.

15. All of the following are the criteria to determine whether use is fair or not, except

a. Effect of the use upon the potential market of the copyrighted work

b. Nature of the copyrighted work

c. Purpose and the character of the user

d. Amount and substantiality of the portions used.

16. It is the right to require that the authorship of the works be attributed to him, in a
prominent way on the copies, and with the public use of the work.

a. Right to Restrain

b. Right to Paternity
 c. Right to Objectivity

d. Right to Integrity

17. Under Subsection 187.1 of the Intellectual Property Code of the Philippines, the
reproduction of a published work shall be permitted without the owner's
authorization given that the reproduction was made for research purposes. The
permission granted here shall not extend to:

a. The works that are isolated articles contained in composite works or

portions of other published works and the reproduction can supply them.
b. It is for the use of the computer program in a computer for which it will be
run.
c. The works that cannot be lent to user in its original form

d. A work of architecture in the form of building or other construction

18. In a joint authorship, when does the economic right shall be protected?
a. During the life of the author and for fifty (50) years after his death.
b. Fifty (50) years from the date on which the work was first lawfully
published.
c. During the life of the last surviving author and for fifty (50) years after his
death.
d. Twenty-five (25) years from the date of making.

Patent

19. _________ is a grant issued by the government to an inventor, designer or

maker, the right to exclude others from making, using or selling his invention,
design or utility model within the country for a specific term, in exchange of his
patentable disclosure.
a. Trademark
b. Copyright
c. Patent
d. Franchise

20. Which of the following are elements of Patents?

I. Novelty
II. Inventive step
III. Industrial Applicability
a. I only
 b. I and II
c. I, II and III
d. I and III

21. Statement I: The term of a patent shall be 15 years from the filing date of the
application
Statement II: To maintain the patent application or patent, an annual fee shall be
paid upon the expiration of 4 years from the date the application was published.

a. Only I is true
b. Only II is true
c. Both are true
d. Both are false

22. Statement I: After publication of a patent application, any interested party may
inspect the application documents filed with the Intellectual Property Office.

Statement II: Following the publication of the patent application, any person may
present observations in writing concerning the patentability of the invention. Such
observations shall be communicated to the applicant who may comment on
them.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false

23. In case of infringement, the following are the remedies of the patentee, except
_____
a. Criminal action to recover damages plus attorney’s fees and other
expenses of litigation or reasonable royalty.
b. Injunction for the protection of rights.
c. The court may, in its discretion, order that the infringing goods, materials,
and implements predominantly used in the infringement be disposed of
outside the channels of commerce or destroyed, without compensation.
d. None of the above.
24. The rule wherein the item being used, made or used conforms exactly to the
patent claim of another.
a. Exactness rule
b. Precise rule
c. Double rule
d. Conformity rule

25. The following are the some of the grounds under compulsory licensing, except
_____
a. National emergency/circumstances of extreme urgency
b. The use of the patent is anti-competitive
c. Public non-commercial use with satisfactory reasons
d. Invention is not being worked in the PH on a commercial scale without
satisfactory reasons (importation counts as working or using)
ANSWERS:

Trademark

1) a. Shapes may be registered as trademarks even if the shapes are necessitated by

technical factors or by the nature of the goods themselves or factors that affect their
intrinsic value.

2) c. All of the above

3) c. Only two statements are true.

4) c. Doctrine of secondary meaning

5) b. 10 years and renewable

6) d. DAU shall be filed on all dates mentioned above

7) c. Both statements are false

8) d. Both a and c

Copyright

9) b. Public Lending

10) d. Collective Work

11) d. Only statement 2 is true.

12) d. Reproduction or distribution of published articles or materials in a specialized

format exclusively for the use of the blind, visually- and reading-impaired persons

13) a. Only statement 1 is correct.

14) c. Jason because in case of commissioned works the copyright shall remain with
the creator.

15) c. Purpose and the character of the user

16) b. Right to Paternity

17) d. A work of architecture in the form of building or other construction

18) c. During the life of the last surviving author and for fifty (50) years after his death.
Patent

19) c. Patent

20) c. I, II and III

21) b. Only II is true

22) c. Both are true

23) a. Criminal action to recover damages plus attorney’s fees and other expenses of
litigation or reasonable royalty.

24) a. Exactness rule

25) c. Public non-commercial use with satisfactory reasons

BSA 3-1 (Group 1)

Guanizo, Kristine Mae

Saliente, Mary Faye

Bello, Angelica

Sieza, Deniela Danilyn

San Pedro, Jasper

Salvador, Ann Pauline

Manalo, Jenn Maica

Villas, Aiza Mae

Peña, Kyle Khristopher

Truth in Lending Act MCQs
1. It includes any interest, fees, service charges, discounts and others incident to
the extension of credit
a. Lending
b. Finance Charge
c. Contract of sale
d. Pledge

2. What is the purpose of R.A. 3765?

a. To help you balance your checkbook, and stay out of debt
b. To encourage people to deposit their money
c. To promote the informed use of consumer credit
d. To insure the deposits of all banks

3. It shall prescribe such rules and regulations as may be necessary or proper in

carrying out the provisions of TILA
a. Monetary Board of BSP
b. Department of Trade and Industry
c. Department of Finance
d. Securities and Exchange Commission

4. According to the Truth in Lending Act, lenders are required to provide consumers
with information relating to
a. Money
b. Debt
c. Loan costs
d. Banks

5. Which of the following are allowed to enter into a credit agreement?

I. Individual
II. Partnership
III. Corporation
IV. Association
V. Philippine Government

a. I,II and V only

b. I and V only
c. I, II, III and V only
d. I, II, III, IV and V
6. All of the following are included in the disclosure requirements under Section 4 of
the Truth in Lending Act, except:

a. The cash price or delivered price of the property or the service acquired
b. The creditor's place of residence to where the debtor can settle the
payment for the loan
c. The finance charge
d. The amounts to be credited as down payment

7. Statement 1: The Section 4 of RA 3765 sets forth the required information that
the creditor shall furnish to each person to whom credit is extended right after the
consummation of the transaction.

Statement 2: The disclosure of the information to the debtor shall be in a clear

statement in writing.

a. Only statement 1 is true.

b. Only statement 2 is true.
c. Both statements are true.
d. Both statements are false.

8. Which of the following is included in the information that shall be furnished to the
debtor by his/her creditor under Section 4 of RA 3765?
a. the difference between the cash price or delivered price of the property or
service to be acquired and the finance charge
b. the difference between the cash price or delivered price of the property or
service to be acquired and the unpaid balance of the obligation
c. the difference between the cash price or delivered price of the
property or service to be acquired and the amounts, if any, to be
credited as down payment and/or trade-in
d. None of the information above is included.

9. Who are covered under Truth in Lending Act?

a. Debtors
b. Creditors
c. Both a and b
d. None of the above

10. According to Section 5, the following are the effects of prescribing rule or
regulation to contain classifications and differentiations as in judgement of the
Board. Which of the following is not included according to Section 5?
 a. To effectuate provisions of this Act
b. To prevent circumvention or evasion
c. To facilitate enforcement of this act
d. All are included according to Section 5 of Truth in Lending Act

11. I. Any creditor who in connection with any credit transaction fails to disclose to
any person any information in violation of this Act or any regulation issued
thereunder shall be liable to such person in the amount of P100 and in an
amount equal to twice the finance charged required by such creditor in
connection with such transaction, whichever is the greater, except that such
liability shall not exceed P2,000 on any credit transaction.
II. Action to recover such penalty may be brought by such person within one
year from the date of the occurrence of the violation, in any court of competent
jurisdiction. In any action under this subsection in which any person is entitled to
a recovery, the creditor shall be liable for reasonable attorney's fees and court
costs as determined by the court.
Which statement/s is/are correct?
a. I
b. I and II
c. II
d. None

12. Action to recover such penalty may be brought by such person within _____
from the date of the occurrence of the violation, in any court of competent
jurisdiction
a. Within one month
b. Within two years
c. Within four years
d. Within one year

13. In any action under this subsection in which any person is entitled to a recovery,
the _____ shall be liable for reasonable attorney's fees and court costs as
determined by the court.
a. Debtor
b. Creditor
c. Either debtor or creditor depending on the court decision
d. Debtor and creditor proportionately
14. Statement 1: The Truth in Lending Act seeks to protect debtors by permitting
them to fully appreciate the true cost of their loan, to enable them to give full
consent to the contract, and to properly evaluate their options in arriving at
business decisions.
Statement 2: A clear statement in writing should be furnished by any debtor prior
to the consummation of the transaction.

a. Only Statement 1 is correct.

b. Only Statement 2 is correct.
c. Both statements are correct.
d. Both statements are incorrect.

15. Statement 1: In loan agreements, the rate of interest is a principal condition, if not
the most important component.
Statement 2: Any modification thereof maybe unilaterally made by the party
extending the credit.
a. Only Statement 1 is correct.
b. Only Statement 2 is correct.
c. Both statements are correct.
d. Both statements are incorrect.

16. When was Republic Act no. 3765 otherwise known as Truth in Lending Act
approved and effective?
a. June 21, 1963
b. July 22, 1963
c. June 22, 1963
d. June 22, 1962

17. According to Section 6 of RA 3765, what is the punishment for any person who
willfully violates any provision, or any regulation issued under RA 3765?
a. fine of not less than P100 or more than P5,000 only
b. imprisonment for not less than 6 months, nor more than one year only
c. fine of not less than P100 or more than P5,000 or imprisonment for
not less than 6 months, nor more than one year or both.
d. None of the above
18. Statement 1: No punishment or penalty provided by this Act shall apply to the
Philippine Government or any agency or any political subdivision thereof.
Statement 2: A final judgment hereafter rendered in any criminal proceeding
under this Act to the effect that a defendant has willfully violated this Act shall be
conclusive evidence against such defendant in an action or proceeding brought
by any other party against such defendant under this Act as to all matters
respecting which said judgment would be an estoppel as between the parties
thereto.
a. Only statement 1 is correct.
b. Only statement 2 is correct.
c. Both statements are correct.
d. Neither of the statement is correct.

19. In the UCPB v Veluso, therefore, the civil action to recover the penalty had been
instituted:
a. Action to declare the interests in the promissory notes void or the action to
declare the foreclosure void.
b. Action to declare the interests in the promissory notes void, and the
action to declare the foreclosure void.
c. Action to declare the foreclosure void.
d. Action to declare the interests in the promissory notes void.

20. Truth in Lending Act clearly provides that the disclosure statement must be
furnished prior to the consummation of the transaction, a clear statement in
writing setting forth, to the extent applicable and in accordance with rules and
regulations prescribed by the Board, the following information except:
a. the charges, individually itemized, which are paid or to be paid by such
person in connection with the transaction, but which are not incident to the
extension of credit.
b. the amounts, if any, to be credited as down payment and/or trade-in
c. the finance charge expressed in terms of pesos and centavos.
d. the percentage that the finance bears to the partial amount to be
financed expressed as a simple annual rate on the outstanding
unpaid balance of the obligation.

21. The following are example of finance charge, except?

a. Documentary stamp tax
b. Income tax
c. Credit Investigation fees
d. Appraisal Fees
22. Any person who willfully violates any provision of RA No. 3765 Truth in Lending
Act or any regulation issued thereunder shall be fined
______________________.
a. by not less than P1,000 or more than P5,000 or imprisonment for not less
than 6 months, nor more than one year or both.
b. by not less than P1,000 or more than P5,000 or imprisonment for not
less than 3 months, nor more than 6 months or both.
c. by not less than P5,000 or more than P10,000 or imprisonment for not
less than 6 months, nor more than one years, or both
d. by not less than P5,000 or more than P10,000 or imprisonment for not
less than 3 months, nor more than one years, both.

23. The borrower is not entitled to a separate copy of a disclosure statement.

a. True
b. False

24. An attorney/legal fee is an example of a finance charge.

a. True
b. False

25. Complete the sentence: I acknowledge the receipt of a copy of this statement
prior to the _____________ of the credit transaction.
a. Preparation
b. Perfection
c. Consummation
d. Conception
Secrecy of Bank Deposits and Unclaimed Balances MCQs:

1. Statement 1: Only specific type of deposits with banks or banking institutions in

the Philippines, including those in abroad, are hereby considered as of an
absolutely confidential nature and may not be examined, inquired, or looked into
by any individual.
Statement 2: Trust accounts are not covered by the bank secrecy law.

a. Only Statement 1 is incorrect.

b. Only Statement 2 is incorrect.
c. Both statements are correct.
d. Both statements are incorrect.

2. Vernon, a bank employee, was asked by a client to look into the bank deposits of
another person who currently has a financial obligation to the former. Is it
appropriate for Vernon to oblige to the client’s request?
a. Yes, because Vernon is a bank employee and has a rightful authority to
comply with the client’s request.
b. No, because according to the law, any bank official or employee is
prohibited to disclose any information concerning deposits to any
person other than a bank director or official or employee authorized by
the bank.
c. Yes, as long as Vernon complies to the bank’s policy.
d. There is insufficient information to answer this question.

3. Statement 1: Deposits are characterized as being in the nature of a simple loan.

Statement 2: The placing of deposits in a bank creates a creditor-debtor
relationship between the depositor and the bank, respectively.

a. Only Statement 1 is incorrect.

b. Only Statement 2 is incorrect.
c. Both statements are correct.
d. Both statements are incorrect.

4. Deposits covered by Bank Secrecy Law include

Deposits Treasury Bills Trust Accounts
a. Yes Yes Yes
b. Yes No Yes
c. Yes Yes No
d. Yes No No
5. Some exceptions from the Bank Secrecy Law are the following, except
a. Inquiry by the Commissioner of BIR
b. Subpoena by the Ombudsman
c. Impeachment cases
d. None of the above

6. Bank directors should secure a waiver of secrecy of their deposits in the said
bank.
a. False, RA 1405 is violated
b. False, it is prohibited to look into transactions of officers with the bank
c. True, pursuant to The New Central Bank Act
d. True, the waiver is not necessarily written

7. What is R.A. No. 3019

a. Anti-Graft and Corrupt Practices Act
b. Anti-Corrupt and Graft Practices Act
c. Anti-Corruption and Graft Practices Act
d. Bank Secrecy Law

8. The following are the exceptions under Bank Secrecy Law, except _____
a. Disclosure to the Treasurer of the Philippines for unclaimed balances
under the Unclaimed Balances Act
b. Upon the order of a competent court or in proper cases by the AMLC
where there is probable cause of money laundering and in some instances
even without court order
c. Upon the inquiry by the Commissioner of BIR:
i. The purpose of determining the gross estate of a deceased
depositor
ii. Pursuant to a request of tax information of specific taxpayers made
by a foreign tax authority pursuant to a tax treaty under The
Exchange of Information on Tax Matters Act of 2009 (Rep. Act No.
8424, as amended by Rep. Act. No. 10021.
d. All statements are considered exceptions

9. Described as wilfully or negligently failing to perform assigned duties, or

performing them in a culpably inefficient manner.
a. Gross negligence
b. Bribery
c. Dereliction of duty
d. Deviation from duty
10. The bank secrecy law (RA 1405) prohibits disclosing any information about
deposit records of an individual without court order except:
a. In an examination to determine gross estate of the decedent.
b. In an investigation for violation of Anti-Graft and Corrupt Practices
c. In an investigation by the Ombudsman
d. In an impeachment proceeding

11. Which of the following is an exception to the secrecy of bank deposits which are
in Philippine Pesos, but NOT an exception to the secrecy of foreign
currency deposits?

a. Upon Bangko Sentral ng Pilipinas (BSP) inquiry into or examination of

deposits or investments with any bank, when the inquiry or examination is
made in the course of the BSP's periodic special examination
of said bank to ensure compliance with the Anti-Money
Laundering Act (AMLA)
b. Upon Philippine Deposit Insurance Corporation (PDIC) and BSP inquiry
into and examination of deposit accounts in case there is a finding of
unsafe or unsound banking practice
c. Upon inquiry in cases of impeachment
d. Upon inquiry by the Commissioner of Internal Revenue in the event a
taxpayer files an application to compromise his tax liabilities on the ground
of financial incapacity.

12. X is being charged for violation of Anti-Graft and Corrupt Practices because he
is suspected of having accumulated unexplained wealth. X maintains
deposit accounts with ABC Bank. The Ombudsman filed criminal cases against X
before the Sandiganbayan. Can the Court issue subpoena against ABC Bank to
produce all documents pertaining to all the deposit accounts of X?
a. Yes, because there is already a pending case and provided the
subpoena must be specific as to which account.
b. Yes, it is enough that the specific bank is identified.
c. No, because the issuance of the subpoena has no real legal basis.
d. Even without a subpoena, information about the deposit accounts of X can
be submitted to the Sandiganbayan because it will be used in a
pending case.

13. Foreign bank deposits can be examined, inquired or looked into when there is a
written permission or consent of the depositor under Section 8 of Foreign
Currency Deposits Act (RA 6426).
a. True
b. False
14. Foreign currency deposits in banks are not absolutely confidential and can
always be disclosed to third parties.
a. True
b. False

15. Which of the following deposits are exempt for garnishment?

a. Trust Accounts
b. Peso deposits
c. Foreign currency deposits except transient foreigners
d. Bonds

16. It is obligatory of every bank to report, in a sworn statement, to the

_________________, information on unclaimed balances.
a. Solicitor General
b. Treasurer of the Philippines
c. Secretary of Finance
d. Bangko Sentral

17. Statement 1: In garnishment, there is violation of the bank secrecy law since the
amount of the deposit is not actually disclosed.

Statement 2: The penalty for violating the bank secrecy law for peso deposits is
imprisonment for not more than six (6) years, or meted a fine not exceeding
P20,000.00 or both.
a. Only statement 1 is correct.
b. Only statement 2 is correct.
c. Both statements are correct.
d. Neither of the statement is correct.
18. The following are the information required in the sworn statement except:

a. The interest due on such unclaimed balance, if any, and the amount
thereof
b. The names and last known place of residence or post office addresses of
the person in whose favor such unclaimed balances stand.
c. The date when the person on whose favor the unclaimed balance
stands died, if known, or the date when he made his first deposit or
withdrawal
d. All are information required in the sworn statement

19. Fill in the blank. One of the procedure of escheat it that the bank will then report,
through a sworn statement, to the _______ ________the existence of such
deposits.
 a. President of the Philippines
b. Secretary of the Board of Directors
c. Solicitor General
d. None of the above

20. Who will initiate the proper escheat proceedings in the court?

a. President of the Philippines

b. Treasurer of the Philippines
c. Solicitor General
d. None of the above

21. The procedure for reactivation of unclaimed balances:

I. Letter Request of the Covered Institution
II. Letter of Authority to Reactivate
III. Entity Requirements
IV. Authentication
V. Deed of Undertaking
VI. Letter Request of Depositor/Creditor

a. VI, IV, I, V, II, III

b. VI, IV, V,I, II, III
c. VI, I, IV, V, III, II
d. VI, I, V, IV, III, II

22. The authority to reactivate on unclaimed balance account with an aggregate

amount of unclaimed balances exceeding P1,000,000.00 shall be issued by
___________________.

a. Division Chief/Head Law & Litigation Division Legal Service

b. Director, Legal Service
c. Deputy Treasurer of the Philippines
d. Treasurer of the Philippines

23. The authority to reactivate on unclaimed balance account with an aggregate

amount of unclaimed balances exceeding P1,000,000.00 shall be issued by
___________________.
a. Division Chief/Head Law & Litigation Division Legal Service
b. Director, Legal Service
c. Deputy Treasurer of the Philippines
 d. Treasurer of the Philippines

24. It refers to the judicial process in which the State, by virtue of its sovereignty,
steps in and claims abandoned, left vacant, or unclaimed property, without there
being an interested person having a legal claim thereto.
a. Eviction proceedings
b. Escheat proceedings
c. Nullity proceedings
d. Annulment proceedings

25. Whenever the Solicitor General shall be informed of such unclaimed balances,
he shall commence an action/s in the name of the people of the Republic of the
Philippines in the court of first instance of the province or city where the bank,
building and loan association, or Trust Corporation is located.
a. True
b. False
AMLA MCQs
1. In which stage of money laundering would the money re-enter mainstream economy
in legitimate-looking form, appearing to have come from legitimate transaction.
a. Placement
b. Layering
c. Integration
d. Administration

2. It refers to the process of which a person conceals the existence of unlawfully

obtained money and makes it appear to have originated from lawful sources. The
intention behind such a transaction is to hide the beneficial owner of said funds and
allows criminal organizations or criminals to enjoy the proceeds of such criminal
activities.
a. Money Market Placement
b. Money Laundering
c. Concealment
d. None of the above

3. At this stage of Money laundering, the money is sent through various financial
transactions to change its form and make it more difficult to follow.
a. Placement
b. Layering
c. Integration
d. Administration

4. A public officer entered into a contract with which he takes part in his official capacity
or with which he is legally allowed to intervene. He has financial interest in the said
transaction, but it is only indirect. Is this considered unlawful under AMLA?
a. No, since it is only indirect financial interest.
b. Yes, it is considered unlawful as long as there is financial or
pecuniary interest.
c. No, as long as the decisions regarding the contract does not rest with the
public officer.
d. Yes, because he will not receive benefits.

5. Statement I: Qualified theft is not considered an unlawful act.

Statement II: Selling of the thing stolen is not considered an unlawful act, as long
as there was no violence or intimidation involved in taking it.
a. Only statement I is true.
b. Only statement II is true.
c. Both statements are true.
d. Both statements are false.
6. The Anti-Money Laundering Law is a law that seeks to prevent money
laundering activities by providing for more transparency in the Philippine Financial
System, hence the following institutions are covered by the law, except:
a. Bank and any financial institutions
b. Pawnshops
c. Casino operators
d. All of the above

7. For purposes of determining violation of the provisions of Anti-Money Laundering

Law, a transaction is considered as a "Suspicious Transaction "with "Covered
Institutions" regardless of the amount involved, where which the following
circumstances exist/s?
a. the amount involved is not commensurate with the client's business or
financial capacity
b. there is no underlying legal or trade obligation, purpose or economic
justification
c. client is not properly identified
d. All of the above.

8. Under the Anti-Money Laundering Law, a covered institution is required to maintain

a system of verifying the true identity of their clients as well as persons purporting to
act on behalf of
a. Those doing business with such clients.
b. Unknown principals.
c. The covered institution.
d. Such clients.

9. One of the unlawful activities listed in Anti- Money Laundering Act is the violation of
Presidential Decree No. 1612 otherwise known as ___________.
a. Anti-fencing Law
b. Intellectual Property Code of the Philippines
c. Anti- Carnapping Act of 2002
d. None of the above

10. One of the covered entities in Anti- Money Laundering Act are Banks, offshore
banking units , quasi-banks, trust entities, non-stock savings and loan associations,
pawnshops, and all other institutions and their subsidiaries and affiliates supervised
and/or regulated by the _________.
a. SEC
b. BSP
c. Insurance Commission
d. None of the Above
11. All of the following are entities covered by the Act except:
a. Jewelry dealers in precious metals/stones, who as, a business, trade in
precious metals/stones, for transactions in excess of ₱1,000,000
b. Land Registration Authority and all of its Register of Deeds on all
real estate transaction with price not exceeding ₱500,000
c. Foreign exchange corporations, money changers, money payment,
remittance, and transfer companies and other similar entities
d. Casinos, including internet and ship-based casinos with respect to their
casino cash transactions related to their gaming operations

12. ______ is an incorporated company that possesses no significant assets and does
not perform any significant operations.
a. Shell Company
b. Financial Institutions
c. Law Firms
d. Auditing Firms

13. Which of the following constitutes acts that a shell company perform to launder
money?
I. Requires customers to often pay with cash to increase the anonymity of
customers.
II. Creates fake invoices and receipts to account for cash.
III. Make withdrawals and either return the money to the initial criminal or pass
on to further shell companies before returning it to further cloud who first
deposited the money
a. I only
b. II only
c. III only
d. I, II,III

14. Which of the following constitutes acts that a shell company perform to launder
money?
I. Requires customers to often pay with cash to increase the anonymity of
customers.
II. Creates fake invoices and receipts to account for cash.
III. Make withdrawals and either return the money to the initial criminal or pass
on to further shell companies before returning it to further cloud who first
deposited the money
a. I only
b. II only
c. III only
d. I, II,III
15. The following are obligations of covered institutions, except:
a. Prohibited Accounts
b. Record Keeping
c. Customer Identification
d. Safe Harbor

16. Prohibited Accounts includes:

a. Numbered Accounts
b. Anonymous Accounts and Accounts under Fictitious Names
c. Both A and B
d. Neither A nor B

17. Under Customer Identification, the Minimum Customer Information and

Identification Documents are the following, except:
a. Name of Customer
b. Present Address
c. Permanent Addresses
d. Specimen signatures or biometrics of the covered institution

18. Statement 1: Should a transaction be determined to be both a covered and a

suspicious transaction, it shall be reported as a suspicious transaction.

Statement 2: When reporting it shall not be considered a violation of bank

secrecy law and similar laws.
a. Both statements are true.
b. Both statements are false.
c. Only statement 1 is false.
d. Only statement 2 is false.

19. All of the following are considered suspicious transactions, except:

a. The client is not properly identified
b. The amount involve is not commensurate with the business or financial
capacity of the client
c. There is no legal or trade obligation, purpose or economic justification
d. The amount involved is in excess of Php500,000 within one (1)
banking day

20. When should the covered persons file the suspicious transaction reports if there
are circumstances that exhibit suspicious transactions?
a. within three (3) working days from occurrence thereof
b. within five (5) working days from occurrence thereof
c. within ten (10) working days from occurrence thereof
 d. within fifteen (15) working days from occurrence thereof

21. The following are the composition of anti-money laundering council, except
a. Governor of the Bangko Sentral ng Pilipinas
b. Commissioner of Insurance commission
c. Secretary of Finance
d. Chairman of SEC

22. Which of the following would a court order not be necessary to inquire into or
examine any particular deposit or investment?
I. Kidnapping for ransom
II. Terrorism and conspiracy to commit terrorism
III. Destructive arson and murder
IV. Smuggling
V. Robbery and extortion

a. I,II,III
b. I,III,IV
c. I,II,V
d. I,IV,V

23. The followings are the functions of Anti-money Laundering Council, except
a. To institute civil forfeiture proceedings and all other remedial proceedings
through the OSG
b. To require, receive and analyze covered or suspicious transactions
reports from covered persons
c. To develop educational programs on the pernicious effects of money
laundering and the methods and techniques used in money laundering
d. None of the above

24. In case there is no case filed against a person whose account has been frozen
within the period determined by the Court of Appeals, not exceeding six (6) months,
the freeze order is considered to be?
a. The effectivity of the freeze order is considered to be extended for another
six (6) months.
b. The effectivity of the freeze order is considered to be extended for another
20 day period.
c. The effectivity of the freeze order is considered to be extended until upon
the Court of Appeals lifts the order.
d. The effectivity of the freeze order is considered to be deemed ipso
facto lifted.
25. Under Section 10 (a), the freeze order cannot exceed _____________.
a. 20 days
b. 6 months
c. 6 months and 20 days
d. Undetermined

BSA 3-1 GROUP 1

Guanizo, Kristine Mae

Saliente, Mary Faye

Bello, Angelica

San Pedro, Jasper

Salvador, Ann Pauline

Manalo, Jenn Maica

Pena, Kyle Khristopher

Sieza, Deniela Danilyn

Villas, Aiza Mae

PHILIPPINE DEPOSIT INSURANCE CORPORATION (MCQs)

1. The following are the composition of the board of directors of the Philippine
Deposit Insurance Corporation (PDIC), except:
a. Governor of the BSP
b. Secretary of Finance
c. President of the PDIC, who shall be appointed by the President of the
Philippines
d. Four members from the private sector to be appointed by the President of
the Philippines
e. None of the above

2. Statement 1: PDIC promotes and safeguard the interests of the depositing public
by providing insurance coverage on some insured deposits.
Statement 2: PDIC also helps in maintaining a sound and stable banking system.
a. Only Statement 1 is true.
b. Only Statement 2 is true.
c. Both statements are true.
d. Both statements are false.

3. Which of the following will not enhance the recovery rate for creditors of closed
banks?
a. Immediate assignment of encumbered assets to closed bank creditors
b. Adoption of purchase of assets
c. Assumption of liabilities as a mode of liquidation
d. Reopening of banks ordered closed by the Monetary Board of the BSP

4. It means the unpaid balance of money or its equivalent received by bank in the
usual course of business and for which it has given or is obliged to give credit to
a commercial, checking, savings, time or thrift account, evidenced by a
passbook, certificate of deposit, or other evidence of deposit issued in
accordance with Bangko Sentral ng Pilipinas rules and regulations and other
applicable laws, together with such other obligations of a bank.
a. Insured deposit
b. Insured bank
c. Disputed claim
d. Deposit

5. It means the amount due to any bonafide depositor for legitimate deposits in an
insured bank as of the date of closure but not to exceed 500,000
a. Insured deposit
b. Insured bank
c. Disputed claim
d. Deposit

6. The following are the functions of the PDIC, except

 a. to investigate banks
b. to safeguard deposits
c. to audit bank financial statements
d. to liquidate closed banks

7. The maximum insurance per depositor by PDIC is _____

a. always fixed at P500,000
b. P500,000 and can be adjusted
c. always fixed at P5,000,000
d. P5,000,000 and can be adjusted

8. The possibility that failure of one bank to settle net transactions with other bank
will trigger a chain reaction, depriving other banks of funds lending to a general
shutdown of normal clearing and settlement activity
a. chain-reaction risk
b. universal risk
c. systematic risk
d. systemic risk

9. In addition to the powers of a receiver provided under existing laws, the PDIC, as
receiver of a closed bank, is empowered to:
a. Represent and act for and on behalf of the closed bank
b. Gather and take charge of all the assets, records and affairs of the closed
bank, and administer the same for the benefit of its creditors
c. Convert the assets of the closed bank to cash or other forms of liquid
assets
d. All of the above

10. Statement I: The receiver is authorized to adopt and implement, without need of
consent of the stockholders, board of directors, creditors or depositors of the
closed bank, any or a combination of the modes of liquidation.
Statement II: The officers, employees, deputies, assistants and agents of the
receiver shall have no liability and shall not be subject to any action, claim or
demand in connection with any act done or omitted to be done by them in good
faith in connection with the exercise of their powers and functions.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false

11. This occurs whenever a deposit account with an outstanding balance of more
than the statutory maximum amount of insured deposit maintained under the
name of persons is broken down and transferred to two or more accounts in the
name of persons or entities who have no beneficial ownership on transferred
deposits in their names within 120 days immediately preceding or during a bank-
 declared bank holiday, or immediately preceding a closure order issued by the
Monetary Board to await of the maximum deposit insurance coverage
a. Insured Deposit
b. Splitting of deposit
c. Transfer deposit
d. Inter-batch deposits

12. _______ exists when a deposit is maintained in the same right and capacity for
a depositor’s benefit, whether in his own name or in the name of others.
a. Principal-Agent relationship
b. Partnership
c. Beneficial ownership
d. Unlawful act

13. Depositor X maintains both individual and joint accounts. His deposits may be
insured up to a total of
a. P500,000
b. P1,000,000
c. P250,000
d. P2,000,000

14. If the deposit account is held by a juridical person or entity jointly with one or
more natural persons, the maximum insured deposit shall belong to
a. P500,000 to juridical person/entity and another P500,000 to natural
person
b. P250,000 to juridical person/entity and another P250,000 to natural
person
c. P500,000 entirely to natural person
d. P500,000 entirely to juridical person/entity

For numbers 15 to 16, refer to the information given below:

15. How much in the total insured deposit of Kelly Santos assuming she maintains all
the deposit accounts above in the same bank?
a. Php1,000,000
b. Php500,000
c. Php650,000
d. Php980,000
16. How much in the total uninsured deposit of Kelly Santos assuming she maintains
all the deposit accounts above in the same bank?
a. Php140,000
b. Php330,000
c. Php240,000
d. Php190,000

17. The couple Mocha and Cashew have the following account balances with BDO:
Mocha: 500,000
Cashew: 500,000
Mocha and/or Cashew: 500,000
Assuming that BDO was closed, how much can Mocha recover from PDIC?
a. 250,000
b. 500,000
c. 750,000
d. 1,000,000

18. How much is the uninsured amount of Mocha?

a. 250,000
b. 500,000
c. 750,000
d. 1,000,000

19. Who is NOT required to file deposit insurance claims?

a. LBJ, when failed to update his mailing address through the MAUF issued
by the PDIC.
b. KD, which has a valid deposit accounts with balances of more than
100,000.
c. AD, who maintains its accounts under the name of business entity.
d. MJ, which has valid deposit accounts with balances of P100,000 and
below, has no obligation with the closed bank and has complete and
updated addresses.
20. In the management and/or conversion of the assets of the closed bank, the
receiver shall have the authority to:
I: conduct a physical or ocular inspection of the properties owned by, or
mortgaged to, the closed bank, to determine their existence and present
condition
II: determine the disposal price of assets in accordance with generally accepted
valuation principles, standards and practices
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false

21. Statement I: Failure to settle the claim within 8 months due to grave abuse of
discretion, gross negligence, bad faith, or malice will subject the directors,
officers or employees of the corporation responsible for the delay up to
imprisonment from 6 months to two years.
Statement II: In case of failure to comply within the periods mentioned in this act,
PDIC will remain liable on the insured deposit

a. Only 1 statement is true

b. Both statements are true
c. Both statements are false

22. The period for the depositor to file claim from the actual takeover of the closed
bank is:
a. Within a year
b. Within 3 years
c. Within 6 months
d. None of the above

23. Whenever an insured bank shall have been closed by the Monetary Board, or
upon expiration or revocation of a bank’s corporate term, payment of the insured
deposit on such closed bank shall be made by PDIC as soon as possible by:
I: Cash
II: By making available to each depositor a transferred deposit in another insured
bank in an amount equal to insured deposit of such depositor

a. I only
b. II only
c. Either I or II
d. Neither I nor II
24. The following statements are true regarding payments of insured deposits under
RA 3591, as amended except:

a. The PDIC, upon payment of any depositor shall be subrogated to all rights of
the depositor against the closed bank to the extent of such payment.
b. Failure to settle the claim, within 2 years from the date of filing of claim for
insured deposit, where such failure was due to grave abuse of discretion,
gross negligence, bad faith, or malice, shall, upon conviction, subject the
directors, officers or employees of the Corporation responsible for the delay,
to imprisonment from six (6) months to one (1) year.
c. Payments of insured deposits in closed banks partake of the nature of public
funds, and as such, must be considered a preferred credit similar to taxes due
to the National Government.
d. The settlement period shall not apply if validity of the claim requires the
resolution of issues of facts and or law by another office, body or agency.

25. The PDIC shall settle the claim within __________ from the date of filing of claim
for insured deposit.
a. 90 days
b. 2 years
c. 6 months
d. 1 year
Answers:
1. e. None of the above
2. b. Only Statement 2 is true.
3. d. Reopening of banks ordered closed by the Monetary Board of the BSP
4. d. Deposit
5. a. Insured deposit
6. c. to audit bank financial statements
7. b. P500,000 and can be adjusted
8. d. systemic risk
9. d. All of the above
10. c. Both are true
11. b. Splitting of deposit
12. c. Beneficial ownership
13. b. P1,000,000
14. d. P500,000 entirely to juridical person/entity
15. c. Php650,000
16. a. Php140,000
17. c. 750,000
18. a. 250,000
19. d. MJ, which has valid deposit accounts with balances of P100,000 and below, has
no obligation with the closed bank and has complete and updated addresses.
20. c. Both are true
21. a. Only 1 statement is true
22. d. None of the above
23. c. Either I or II
24. b. Failure to settle the claim, within 2 years from the date of filing of claim for
insured deposit, where such failure was due to grave abuse of discretion, gross
negligence, bad faith, or malice, shall, upon conviction, subject the directors, officers or
employees of the Corporation responsible for the delay, to imprisonment from six (6)
months to one (1) year.
25. c. 6 months

BSA 3-1 GROUP 1

Guanizo, Kristine Mae

Salvador, Ann Pauline

Manalo, Jenn Maica

San Pedro, Jasper

Pena, Kyle Khristopher

Saliente, Mary Faye

Sieza, Deniela Danilyn

Bello, Angelica

Villas, Aiza Mae

OTHER BANKING LAWS MULTIPLE CHOICE QUESTIONS

1. All of the following information are required in the sworn statement reported by banks to the
Treasurer of the Philippines regarding the existence of unclaimed balances, except:

a. Names and last known place of residence or post office addresses of the persons in whose
favor such unclaimed balances stand.

b. Date when the person in whose favor the unclaimed balance stands died, if known

c. Amount made by the person in whose favor the unclaimed balance stands on his last deposit
or withdrawal

d. Interest due on such unclaimed balance

2. Statement 1: The Treasurer of the Philippines will initiate the proper escheat proceedings in
court involving the unclaimed balances in banks.

Statement 2: Before reporting to the Treasurer of the Philippines regarding the existence of
unclaimed balances, banks will send a notice to the depositor at his last known place of
residence or any of his registered contact information with the bank such as e-mail or phone
number.

Statement 3: After trial, and it is determined that such balances are unclaimed, the court shall
render judgment declaring such balances escheated in favor of the bank where such unclaimed
balances are deposited.

a. Only Statement 2 is false

b. Only Statement 1 and 2 are true

c. Only Statement 3 is not false

d. All statements are not true

3. What are the penalties for violation of Bank Secrecy Law?

a. Imprisonment of not more than 10 years or a fine not to exceed 20,000 or both

b. Imprisonment of not more than 10 years and a fine not to exceed 30,000

c. Imprisonment of not more than 5 years or a fine not to exceed 20,000 or both
d. Imprisonment of not more than 10 years and a fine not to exceed 30,000

4. Who acts as the Chairman of the Anti-Money Laundering Council?

a. Commissioner of Insurance Commission

b. Governor of the Bangko Sentral ng Pilipinas

c. President of the Philippines

d. Chairman of the Securities and Exchange Commission

5. Statement 1: There is no violation of the Bank Secrecy Law in garnishment since the amount
of the deposit is not actually disclosed.

Statement 2: Investments in bonds issued by the government of the Philippines are not covered
by the Bank Secrecy Law.

a. Only Statement 1 is true.

b. Only Statement 2 is true.

c. Both Statements are true.

d. Both Statements are not true.

6. The following persons are required to execute a written waiver of secrecy of deposits
persuant to The New Central Bank, exept:

a. Directors of the bank

b. Stockholders of the bank

c. External Auditors of the bank

d. Officers of the bank

7. Any person violating the Bank Secrecy Law may be imprisoned for not more than ________,
or meted a fine not exceeding ________ or both.

a. 3 years; P20,000

b. 5 years; P15,000
c. 5 years; P20,000

d. 10 years; P50,000

8. Who has Jurisdiction for Violations of AMLA?

a. Regional Trial Courts

b. Sandiganbayan

c. both A and B

d. None of the Above

9. Which of the following is not a purpose of Bank Secrecy Law?

a. Discourage private hoarding

b. Ensure that banks are hiring competent employees

c. Encourage people to deposit their money in banking institutions.

d. Assist economic development

10. Statement 1: The Anti-Money Laundering Council can only examine bank accounts without
a court order when there is a probable cause that deposits are related to certain crimes
including the violation of RA. No. 9995 otherwise known as the Anti-Photo and Video Voyeurism
Act of 2009.

Statement 2: Inquiry into deposits may be availed of even in the absence of a pre-existing
criminal case under the same law and the order authorizing bank inquiry can be issued ex-
parte.

a. Only statement 1 is true

b. Only statement 2 is true

c. Both statements are true

d. Both statements are false

11. The following are information required in the sworn statement reported by the bank to the
Treasurer of the Philippines for the existence of unclaimed balances, except:

a. The names and last known place of the business or post office addresses of the persons in
whose favor such unclaimed balances stand

b. The amount and date of the outstanding unclaimed balance

c. The type of deposit, whether in money or in security and, if the latter, the nature of the same.

d. The interest due on such unclaimed balance, if any, and the amount thereof

12. The following circumstances allow for deposits to be examined, inquired and look into,
except when:

a. The court issued an order for RCBC Bank to disclose details pertaining to the deposit
accounts of Petyr Baelish, a public official who is the defendant on a bribery case.

b. Joffrey Baratheon, the President of the Philippines, is a respondent to an impeachment case

on the ground of graft and corruption. His deposit accounts are to be inspected without his
consent for examination.

c. Eddard told his wife, Catelyn, that he is allowing her to check his various deposit accounts in
BDO. Catelyn, then went to BDO to check his husband’s deposit accounts.

d. Tywin Lannister, a bank manager of CIMB Bank, is directed to produce several bank
documents relative to Tywin Lannister’s accounts. Tywin Lannister is the defendant to a fraud
case in which the alleged anomaly arises from issuance of checks from his CIMB account which
were subsequently deposited to different financial institutions.

13. Upon conviction, any violation of Republic Act No. 1405 shall subject offender to:

a. An imprisonment of five years at most

b. A fine of at least twenty thousand pesos

c. Both a and b

d. Any of the above, upon discretion of the court

14. Statement I. It is unlawful for any official or employee of a banking institution to disclose any
information concerning deposit to any person other than those who are exempted by law.

Statement II. Any violation of Republic Act No. 1405 shall subject offender to an imprisonment
of five years at most or a fine of at least twenty thousand pesos or both, upon discretion of the
court.

a. Statement I is true, Statement II is true

b. Statement I is true, Statement II is false

c. Statement I is false, Statement II is true

d. Statement I is false, Statement II is false

15. Its purpose is to discourage private hoarding and at the same time encourage the people to
deposit their money in banking institutions.

a. PDIC

b. Bank Secrecy Law

c. Unclaimed Balances Law

d. AMLC\

16. Statement 1: under Bank Secrecy Law, the exception to prohibited acts includes disclosure
of bank to any person other than bank director, official or employee authorized by bank, any
information concerning deposits when there is written or oral permission of the depositor or
investor.

Statement 2: under Bank Secrecy Law, the exception to prohibited acts includes disclosure of
bank to any person other than bank director, official or employee authorized by bank, any
information concerning deposits upon order of CA, examination by law enforcement officers in
terrorism cases under the Human Security Act of 2007

a. Only Statement 1 is correct

b. Only Statement 2 is correct

c. Both statements are correct

d. Both statements are incorrect

17. Stages of money laundering includes all but which of the following?

a. Corruption

b. Layering

c. Placement

d. Integration

18. Modified True or False. The Anti-Money Laundering Council is composed of the SEC
Chairman as AMLC Chairman, and the Commissioner of Insurance Commission and the BSP
Governor as members.

a. TRUE ; TRUE

b. BSP Governor ; TRUE

c. TRUE ; SEC Chairman

d. BSP Governor ; SEC Chairman

19. This term refers to those accounts, the funds and sources of which originated from and/or
are materially linked to the monetary instruments or properties subject of the freeze orders.

a. Related Web of Accounts

b. Interrelated Accounts

c. Related Money Laundering Accounts

d. Accounts on Freeze

20. Which of the following will not be considered as money laundering?

a. Transacts or attempts to transact a monetary instrument or property from unlawful activities.

b. Converts, transfers, disposes of, moves or uses a monetary instrument or property from
unlawful activities.
c. Conceals or disguises the true nature of a monetary instrument or property from unlawful
activities.

d. None of the above.

21. Which of the following is not an unlawful activity as per the AMLA?

a. Theft without violence or intimidation.

b. Kidnap for ransom.

c. Swindling and Smuggling

d. Terrorism

22. Which of the following is not a covered entity under the AMLA?

a. Company service Providers to Third Parties

b. Foreign Exchange Corporations and similar entities.

c. Jewelry Dealers whose transactions are less than 1M.

d. Casinos.

23. Which of the following is not an example of prohibited accounts under the AMLA?

a. Anonymous Accounts

b. Accounts Under Fictitious Names

c. Numbered Accounts.

d. Unclaimed Balances Accounts

24. Statement 1. Banks are prohibited to disclose to any person any information concerning
deposits except with bank officials and other authorized employees.

Statement 2. Any person, with the exemption of the government, is prohibited to inquire,
examine or look into bank deposits or bonds issued by the government.

a. Only Statement 1 is correct

b. Only Statement 2 is correct

c. Both statements are correct

d. Both statements are incorrect

25. What is the correct procedure for escheat of unclaimed balances?

a. Report to the Treasurer of the Philippines through a sworn statement after a notice to the
depositor at his last known place of residence or post office address.

b. Notice to the depositor at his last known place of residence or post office address after the
report to the Treasurer of the Philippines through a sworn statement.

c. Both are legal procedures for escheat.

d. Neither are legal procedures for escheat.

PDIC Act Multiple Choice Questions

1. Upon the designation of the Philippine Deposit Insurance Corporation as receiver of the close bank,
which of the following actions is valid regarding the notice of closure?(Sec 14)

a) Serve the notice of closure to the highest ranking officer present in the bank premises.
b) Post the notice of closure in the bank premises or in its main entrance, in the absence of an
officer.
c) Either A or B is correct.
d) Neither A or B is correct.

2. In terms of the tax obligations of the Philippine Deposit Insurance Corporation, which of the following
is true?

a) The Corporation is exempt from taxation upon its organization, it being a government owned
and controlled corporation(GOCC).
b) All tax obligations of the Corporation in the entirety of its corporate life shall be chargeable to
the Tax Expenditure Fund(TEF) in the annual General Appropriations Act.
c) On the sixth year prospectively after the passage of the PDIC Act, the Corporation shall be
exempt from income tax, final withholding tax, value-added tax on assessments collected from
member banks, and local taxes.
d) None of the above.

3. This is the only valid ground in which the Corporation, its duly authorized officers and employees, may
examine, inquire or look into deposit records of a bank when there is a failure of prompt corrective
action as declared by the Monetary Board.

a) Fraud
b) Capital Deficiency
c) Request of a major depositor
d) Request of the visiting auditor

4. Statement 1. The PDIC shall promote and safeguard the interests of the depositing public by providing
insurance coverage on all insured deposits as part of its basic policy.

Statement 2. The PDIC shall help maintain a sound and stable banking system.

a) Only Statement 1 is true.

b) Only Statement 1 is false.
c) Both statements are true.
d) Both statements are false.

5. This term refers to the Regional Trial Court of general jurisdiction where the petition for assistance in
the liquidation of the closed bank is filed and given due course.
 a) Liquidation Court
b) Court of Tax Appeals
c) PDIC Court of Liquidation Assistance
d) Insured Deposits Court

6. Which of the following is valid regarding the computation of the amount of dividend declaration of
the Philippine Deposit Insurance Corporation to be remitted to the national government?

a) Thirty-five percent of the assessment collections.

b) Thirty-five percent of the income other than the assessment collections.
c) Fifty-one percent of the assessment collections.
d) Fifty-one percent of the income other than the assessment collections.

7. According to Section 3 of the PDIC Act, the board of directors of the Corporation shall be composed of
seven members. Determine the one that should not be included in the composition of the PDIC-Board.

a) Governor of the Bangko Sentral ng Pilipinas

b) Four members from the public sector to be appointed by the President of the Philippines.
c) Secretary of the Department of Finance
d) President of the PDIC, as appointed by the President of the Philippines.

8. LeroNida Bank of the Philippines is an insured bank under the PDIC Act. Upon the examination of the
PDIC, it was found that the bank is about to commit unsafe or unsound practices in conducting its
business. The Corporation reported this finding to the Monetary Board, and the latter performed and
imposed corrective actions after 20 days. LeroNida Bank of the Philippines refused to comply initially,
but still did after 29 days. Can the PDIC terminate the insured status of LeroNida Bank of the Philippines?

a) Yes, because the bank did not complied immediately with the directives of the PDIC.
b) Yes, it is under the discretion and decision of the PDIC since they are the authority.
c) No, the compliance of the bank is still within the 30-day compliance period as prescribed by the
PDIC Act.
d) No, because the decision is with the President of the Philippines.

9. A petition for assistance in the liquidation of a closed bank is a:

a) A special proceeding for the liquidation of a closed bank, and includes the declaration of the
concomitant right of its creditors and the order of payment of their valid claims in the
disposition of its assets.
b) A proceeding where the court of tax appeals shall have exclusive jurisdiction to adjudicate
disputed claims against the closed banks.
c) A petition to provide financial assistance to a financially unstable bank.
d) A petition to ultimately dispose all of the assets of a bank and turn the proceeds over to the
national government
10. The Philippine Deposit Insurance Corporation, being the receiver of a closed bank, is not authorized
to adopt and implement which of the following?

a) Conventional Liquidation
b) Purchase of Assets and Assumption of Liabilities
c) A combination of conventional liquidation and purchase of assets and assumption of liabilities.
d) Acquisition of Equity by Business Combination

11. Modified True or False. Whenever a bank is ordered closed by the Monetary Board, the PDIC shall be
designated as receiver and it shall proceed with the takeover and liquidation of the closed bank.

a) True ; True
b) PDIC ; True
c) True ; Monetary Board
d) Monetary Board ; PDIC

12. Which of the following is true regarding the subrogation of rights from the paid insured depositor to
the Philippine Deposit Insurance Corporation?

a) The PDIC, upon payment of any insured depositor, shall be subrogated to all rights of the
depositor against the closed bank to the extent of the amount of deposit.
b) The PDIC, upon payment of any insured depositor, shall be subrogated to all rights of the
depositor against the closed bank to the extent of the amount of payment.
c) The PDIC, The PDIC, upon payment of any insured depositor, shall be subrogated to the rights of
the depositor with any recoverable amount of the deposit.
d) The PDIC, upon payment of any insured depositor, is not subrogated in any way to the rights of
the depositor.

13. Nissa Unida is a personnel of the Philippine Deposit Insurance Corporation. In which of the following
cases did she violated the prohibitions of PDIC personnel?

a) She is also an officer of the LeroNida Bank of the Philippines, a bank in which the PDIC extended
financial assistance to and it is the opinion of the Board of the PDIC to make sure designation to
protect the interest of the PDIC.
b) She received a house and lot located in Makati, City from Nicole Mandin, the Vice President of
LeroNida Bank of the Philippines.
c) She disclosed her assessment and evaluation of the condition or business of the PDIC to the
Secretary of the Department of Finance when he visited.
d) None of the above.

14. Statement 1. The Philippine Deposit Insurance Corporation shall enjoy fiscal and administrative
autonomy.

Statement 2. The Philippine Deposit Insurance Corporation is a government instrumentality with

corporate powers.
 a) Only Statement 1 is true.
b) Only Statement 2 is true.
c) Both statements are true
d) Neither of the statements are true.

15. Which of the following is not a required action with regards to the authority of the Philippine
Deposit Insurance Corporation to facilitate and implement the purchase of the assets of the closed bank
and the assumption of its liabilities by another insured bank?

a) Seek approval of the liquidation court regarding the facilitation and implementation of the
purchase of assets and assumption of liabilities.
b) The exercise of the authority shall be in accordance with the Rules on Concurrence and
Preference of Credits under the Civil Code or other laws.
c) The disposition of the branch licenses and other bank licenses shall be subject to the approval of
the Bangko Sentral ng Pilipinas.
d) None of the above.

16. In case of the absence or temporary incapacity of the current President of the Philippine Deposit
Insurance Corporation and pending appointment of a new one by the President of the Philippines, who
is/are responsible to designate the Officer-in-Charge of the Corporation?

a) President of the Philippines

b) The current President of the PDIC
c) The Philippine Senate and Congress
d) The PDIC Board of Directors

I. Determination of the fair market value of the assets and liabilities of a bank.
II. Determination of the risk classification of a bank.
III. Determination of the major depositor/s.
IV. Determination of the possible resolution modes.
V. Determination of the key drivers of the deposit liability.

17. Which of the above is/are included in the PDIC’s conduct of the insurance risk evaluation of a bank in
assessing the risks to the Deposit Insurance Fund?

a) I, II, III, IV
b) I, II, IV
c) I, III
d) I, II, III, IV, V

18. Consider the following facts regarding LeroNida Bank of the Philippines, an insured bank under the
PDIC Act:
 • Deposit Liability – Php 19,000,000.00
• Assessment Rate - 0.05%
• Loan Receivable from the Same Depositors Above – Php 5,000,000

Consider further that the PDIC Board did not established a risk assessment system and did not imposed
a risk-based assessment rate.

Question: How much is the annual assessment due from the bank?

a) 0
b) Php 7,000.00
c) Php 9,500.00
d) Php 12,000.00

19. In relation to the facts in Number 18, how much is the semi-annual assessment due from the bank?

a) Php 3,500.00
b) Php 4,750.00
c) Php 5,000.00
d) Php 6,000.00

20. The principal composition of the capital account of the Philippine Deposit Insurance Corporation
includes:

i. Permanent Insurance Fund

ii. Temporary Insurance Fund
iii. Supplemental Fund for Immediate Insurance Coverage
iv. Assessment Collections
v. Reserves for Insurance and Financial Assistance Losses
vi. Retained Earnings
vii. Contribution with Donor Restrictions

a. I, ii, iii, iv, v, vi, vii b. I, ii, iii, vi c. I, ii, iv, v, vii d. I, iv, v, vi

21. How much is the permanent Insurance fund to carry out the purposes of the PDIC Act?

a) Three hundred million pesos.

b) Three billion pesos.
c) Thirty million pesos.
d) Thirty billion pesos.

22. Provided all proofs of claim as required by the PDIC were satisfied, the payment of the insured
deposit may be in form of:

a) Cash or In-Kind
b) Cash or Real Properties under the name of the government
 c) Cash or a job in the government either contractual or permanent whichever the circumstances
may provide.
d) Cash or by making available a transferred deposit in another insured bank

23. Statement 1. If the depositor in the closed bank shall fail to claim his insured deposits with the PDIC
within two years from the actual takeover of the closed bank, the Corporation shall be discharged from
any liability on the insured deposit.

Statement 2. If the depositor in the closed bank does not enforce his claim filed with the PDIC within
two years after the two year period to file a claim, the Corporation shall be discharged from any liability
on the insured deposit.

a) Statement 1 is TRUE.
b) Statement 2 is TRUE.
c) Both statements are TRUE.
d) Both statements are FALSE.

24. The Philippine Deposit Insurance Corporation is authorized to borrow money from the
___________________ and any ___________________ provided the requirements are satisfied.

a) Local Government Units; LGU Instrumentality

b) Bangko Sentral ng Pilipinas; bank
c) Public; willing lenders
d) President of the Philippines; government official

25. Which of the following is TRUE regarding the term insured deposit?

a) Allyssa Arches is a depositor of a closed bank insured under the PDIC Act. Her deposit in the
closed bank amounts to Php 1,000,000.00. She can claim half of the deposit amount.
b) Hazel Sta. Isabel and Elyza Labaguis are joint depositors of a closed bank insured under the PDIC
Act. Their joint deposit account amounts to Php 1,000,000.00. Both can claim Php 500,000.00
each.
c) Jedrick Natividad and Robea Inc. are joint depositors of a closed bank insured under the PDIC
Act. Their joint deposit amounts to Php 1,000,000.00. Jedrick Natividad and Robea Inc. can claim
equal amounts up to the maximum insured deposit.
d) Jeremiah Inc. and Famisan Inc. are joint depositors of a closed bank insured under the PDIC Act.
Their joint deposit amounts to Php 1,000,000.00. It was indicated in the document of deposit
that come insurance, they will share 2:3. With this, Jeremiah and Famisan can claim Php
400,000.00 and Php 600,000.00 respectively.
Intellectual Property Law Multiple Choice Questions

1. Which of the following is a step in registering a creative work for copyright

protection?
i. Submission of a letter to expressly or impliedly show the intention to apply for
copyright protection.
ii. Presentation of the creative work.
iii. Abstract.
iv. Payment of legal fees.
v. Description and disclosure of additional information about the creative work if
deemed necessary.

A. All of the above. B. i, ii, iv, v C. i, ii, iv D. None of the above.

2. Nissa Unida is a Marketing Manager of LeroNida Company, a car manufacturing and

distribution company. One idle time in her duty, she thought of how beautiful the
products of the company are. With this, she grabbed a piece of bond paper and started
to draw using pens from the office. She also composed a short poem to play as caption
of the drawing. Question: To whom does copyright apply to?
a) Nissa Unida, because she is the one who made the drawing and poem though she is
using the resources of the company.
b) LeroNida Company, because the creative work was done during her office hours.
c) The government, because all works all copyrighted for the ownership of the government.
d) None of the above.

3. Statement 1. As a general rule, the co-authors of a work of joint authorship shall be the
original owners of copyright.
Statement 2. In the absence of an agreement regarding the joint authorship, the rights of
the co-authors shall be governed by rules on co-ownership.
a) Only Statement 1 is true.
b) Only Statement 2 is true.
c) Both statements are true.
d) Both statement are false.

4. Which of the following is false regarding the work of the government of the
Philippines?
a) It is a work created by an officer or employee of the Philippine Government or any of its
subdivisions and instrumentalities.
b) Any work of the government of the Philippines shall be protected by copyright.
c) If the work of the government will be exploited for profit, the approval of the government
agency or instrumentality is required.
d) The government agency or instrumentality may impose a royalty clause upon approval
of the exploitation of the work.
 5. The musical play ‘Ang Huling El Bimbo’, which is inspired by the song of the same title,
is an example of a/an:
a) Extended work
b) Interrelated work
c) Subsequent work
d) Derivative work

6. Modified TRUE or FALSE: Rental is the transfer of possession of the original or a copy
of a work or sound recording for a limited period, for non-profit purposes, by an
institution the services of which are available to the public. Public lending is the transfer
of the possession of the original or a copy of a work or a sound recording for a limited
period of time, for profit-making purposes.
a) TRUE ; TRUE.
b) TRUE ; Reproduction
c) Reproduction ; TRUE
d) Public Lending ; Rental

7. Which of the following is not an unprotected subject matter?

a) Official text of a legislative, administrative or legal nature.
b) Facts having the character of mere items of press information.
c) Procedure or system expressed, explained, illustrated or embodied in a work.
d) All of the above.
e) None of the above.

8. TRUE OR FALSE. A professor showing his students an accounting-related movie from

another producer to supplement his lecture is an example of a copyright infringement.

9. Br. Ben Tor, a world-renounced Filipino inventor, successfully invented a new type of
calculator that can generate correct answers for a problem just by taking a photo of it. The
inventor filed for a patent application in the U.S., where he is based, on February 5, 2010.
He then went back here in the Philippines and also filed for patent application locally last
January 16, 2014. February 5, 2010 is the?

a) Filing Date
b) Graduation Date
c) Priority Date
d) Patent Date

10. Which of the following is non-patentable?

i. Salts
ii. Methods or procedures for a heart transplant.
iii. Methods of performing mental acts.
iv. Discovery of a new form of drug which results to the enhancement of the efficacy of the
substance.
a. All of the above. B. i, ii, iii C. i, iii, iv D. None of the above.

11. This term refers to the element of a patentable invention which requires that the patentable
invention should not be obvious to a person skilled in the art at the time of filing and priority
date.

a) Novelty
b) Inventive Step
c) Industrial Applicability
d) Right of Priority

12. What is the consequence of the non-payment of applicable fees to the status of the
application of patent?

a) Final grant of the patent and subsequent publication.

b) Legal actions for the inventor.
c) Deemed withdrawal of the application.
d) Reduction in the legal life of the patent right.

13. Regarding the annual fees to maintain the patent application or patent, the following
situation will terminate this obligation except:

a) Withdrawal of the application.

b) Cancellation of the application.
c) Refusal of the application.
d) Confirmation of a prior payment from a foreign application.

14. TRUE or FALSE. The government can never exploit the invention without agreement of the
patent owner.

15. If two persons made a similar invention separately and independently of each other and
considering the following facts, to whom the patent right belongs?

Filing Date Priority Date

Inventor Jed January 16, 2010 February 5, 2008

Inventor Hazel January 18, 2010 February 1, 2008

Inventor Jenica January 31, 2010 January 31, 2008

a) Inventor Jed
b) Inventor Hazel
c) Inventor Jenica
d) All inventors own the patent right jointly.

16. This term refers to the idea that an invention shall not be considered new if it forms part of a
prior art.
 a) Liberty
b) Novelty
c) Patentable Invention
d) Non-patentable Invention

17. Upon submission of all the legal requirements for a trademark application, what final
requirement to accord the filing date?

a) Approval of the Director General

b) Have the letter of intent notarized.
c) Payment of the required fee.
d) All of the above.

18. Statement 1. Divisional application refers to any application concerning several goods or
services.

Statement 2. Initial application refers to the division of the applicant of the divisional
application into two or more applications.

a) Only statement 1 is true.

b) Only statement 2 is true.
c) Both statements are true.
d) Neither statements are true.

19. Statement 1. Any person who believes that he would be damaged by the registration of a
mark may, within thirty (30) days after the publication file with the Office an opposition to the
application, without payment of any fee.

Statement 2. The opposition shall be in writing and verified by the oppositor or by any person on
his behalf who knows the facts, and shall specify the grounds on which it is based and include a
statement of the facts relied upon.

a) Only statement 1 is false

b) Only statement 2 is false.
c) Both statement are false
d) Neither statements are false.

20. The basis of the groupings of the goods and services for which the registration is sought.

a) Nice Classification
b) International Commodity Classification
c) Consumer Price Index
d) PSA Classification

21. The filing date of an application shall be the date on which the Office received the following
indications and elements in English or Filipino:

i. An express or implicit indication that the registration of a mark is sought;

 ii. The identity of the applicant;
iii. Indications sufficient to contact the applicant or his representative, if any;
iv. A reproduction of the mark whose registration is sought; and
v. The list of the goods or services for which the registration is sought.

A. i, ii, iii, iv B. i, iii, v C. i, ii, iii, iv D. i, ii, iii, iv, v

22. What are the self-identification means allowed by the Intellectual Property Code in applying
for a trademark or service mark?

a) Signature and Photo of the Applicant

b) Signature and Printed or Stamped Signature or Seal
c) Printed or Stamed Signature or Seal and Photo of the applicant.
d) Signature only.

23. Paw Lo, a Filipino citizen residing in the U.S, successfully created a trademark for her
business. It has branches in the U.S. and in the Philippines. The trademark was created in her
residence and no registration has been made there. She came back to the Philippines to
register the trademark. Can the IPO register the mark?

a) Yes, upon the submission of all legal requirements.

b) Yes, because it will become the property of the government.
c) No, because registration in the country of origin is required.
d) No, because she is a non-resident citizen.

24. The term ‘Examiner’ in the Intellectual Property Code refers to a:

a) Patent Examiner or Trademark Examiner

b) Patent Examiner or Copyright Examiner
c) Trademark Examiner or Copyright examiner
d) Patent Examiner or Trademark Examiner or Copyright Examiner

25. Statement 1. The President of the Philippines appoints the Director General, Deputies
Director General, Directors and Assistant Directors.

Statement 2. The President of the Philippines also appoints other officers and employees of the
Intellectual Property Office.

a) Only statement 1 is false

b) Only statement 2 is false.
c) Both statement are false
d) Neither statements are false
 Multiple Choice Questions (MCQs)

INTELLECTUAL PROPERTY CODE OF THE PHILIPPINES

1. The following are the three distinct functions of trademarks as can be inferred from the
point of view of the modern authorities on trademark law except:

a. They indicate origin or ownership of the articles to which they are attached

b. They guarantee that those articles come up to a certain standard of quality

c. They advertise the articles they symbolize

d. They give the trademark owners the right to prevent others from adopting or using
the same trademark which are of a different description

2. Which of the following statements is/are true?

I. A copy of piracy is not an infringement of the original.

II. Knowledge of infringement is only material when the person is charged of aiding and
abetting a copyright infringement.

III. It is the act of infringement, not the intent, which causes the damage.

IV. To require intent, unless expressly required by law, or assume the need to prove intent
defeats the purpose of intellectual property protection.

a. Only I

b. I and II

c. II, III

d. II, III, IV

3. Which of the following is/are eligible and can be protected under the trademark law?

I. Generic Terms

II. Descriptive Terms

III. Suggestive Terms

IV. Imaginative and Creative

a. Only IV

b. II and III

c. III and IV

d. I, II, and III

4. Which of the following statements is/are false?

I. A well-known trademark needs to be registered in the Philippines to acquire protection

from identical or confusingly similar trademarks attaching to identical or similar goods or
services.

II. Theory of dilution works for the rights of an owner of a well-known mark which is
registered in the Philippines and the rights are extended to goods and services which are not
similar of which the mark is registered.

III. Under the doctrine of secondary meaning, a word or phrase originally incapable of
exclusive appropriation with reference to an article in the market, because geographical or
otherwise descriptive might nevertheless have been used so long and so exclusively by one
producer with reference to this article that, in that trade and to that group of the purchasing
public, the word or phrase has come to mean that the article was his produce.

IV. Jurisprudence has noted 2 types of confusion of marks and trade names namely: (1)
confusion of goods or the product confusion; and (2) confusion of business (source or origin
confusion).

a. Only statement I

b. Only statement II

c. Only statement III

d. Only statement IV

5. The following portions of mark must be disclaimed to permit registration except:

a. Customary term, sign or indication

b. Descriptive matter in the composite matter

c. Generic Term

d. Matter which does not function as a trademark, or service mark, or a trade name

e. None of the above

6. Which of the following statements is not true about trademark or trade name
infringement?

a. Trademark infringement occurs even when there is no actual sale involve in the infringing
activity

b. Trade name infringement occurs only when the trade name is properly registered

c. Trademark infringement occurs only when the trademark is properly registered

d. No fraudulent intent is required in trademark infringement but likelihood of confusion is

essential

e. None of the above

7. A company has filed for registration and has been issued certificate of registration for its
trademark “The Rock” for its musical instruments. After three years from application date, A
company failed to file a Declaration of Actual Use (DAU). The day following such, B company
has been granted certificate of registration for the same trademark “The Rock” for the same
set of musical instruments. Few weeks after, A company continuously used the said
trademark for the same set of products and was able to sell and make profit under such mark.
B company then filed for trademark infringement against A company. Who has the better
right?

a. A company, because in trademark law, the first to file rule applies.

b. A company, because even though it failed to file Declaration of Actual Use (DAU), its
trademark rights starts from the date of issuance of certificate of registration.

c. B company, because he was the first one to file lawsuit for trademark infringement.

d. B company because failure of A company to file DAU three years from application
date gives rise to the cancellation of registration.
8. K and J was both spotted on the same crime scene 12th of March 2021. K was able to have
a news footage of the crime scene and broadcast the same nationwide. J copied the same
news footage without the consent of K and broadcast the same nationwide minutes after the
broadcast of K. Does K have a right to file for copyright infringement?

a. No, because they both have the rights to it due to the sole fact that they are spotted on the
actual crime scene.

b. No, because news of the day and other miscellaneous facts having the character of mere
items of press information are considered unprotected subject matter.

c. Yes, because news footage is considered to be covered of copyright and acquired by

K from the moment of creation.

d. Yes, because news of the day and other miscellaneous facts having the character of mere
items of press information are considered protected subject matter.

9. In respect of letters,

a. The copyright shall belong to the person to whom they are addressed.

b. The copyright shall belong to the writer while ownership of the letters belongs to
the person to whom they are addressed.

c. They can be published or disseminated by the addressee without the consent of the writer
or his heirs.

d. The court cannot authorize their publication or dissemination if the public good or the
interest of justice so requires.

10. What can be copyrighted?

I. Abstract ideas

II. Any idea, procedure, system, method or operation, concept, principle, discovery, or mere
data

III. News of the day

IV. Any work of the Government of the Philippines

V. Creative expression of ideas

VI. Television news footage

VII. Any official text of a legislative administrative or legal nature, as well as any official
translation thereof

VIII. Computer Program

a. I, V, VI and VIII

b. V, VI, and VIII

c. III, IV, V, and VI

d. II, V, VI and VII

11. In cases of Copyright Infringement, determining fair use requires application of the four-
factor test. Which is not included?

a. The purpose and character of the use, including whether such use is of a commercial nature
or is for non-profit educational purposes

b. The nature of the copyrighted work

c. The amount and substantiality of the portion used in relation to the copyrighted work as a
whole

d. The effect of the use upon the potential market for or value of the copyrighted work

e. None of the above

12. Which of the following does not constitute copyright infringement?

I. In a work of architecture in which the right to control the reconstruction or rehabilitation

in the same style as the original of a building to which that copyright relates was claimed and
committed.

II. Private reproduction, without the consent of the author, of a published work in a single
copy, where the reproduction is made by a natural person exclusively for research and
private study.

III. Any use made of a work for the purpose of any judicial proceedings or for the giving of
professional advice by a legal practitioner.
IV. The reproduction and communication to the public of literary, scientific or artistic works
as part of reports of current events by means of photography, cinematography or
broadcasting to the extent necessary for the purpose.

a. Only I

b. II and III

c. II, III, and IV

e. All of the above

13. Which of the following statements is/are true?

Statement I: Fraudulent intent is necessary in order for one to be held liable of trademark
infringement.

Statement II: Fraudulent intent is necessary in order for one to be held liable of unfair
competition.

a. Only I

b. Only II

c. Both statements are true

d. Both statements are false

14. Who shall appoint the Director General of the Intellectual Property Office?

a. Senate President

b. President of the Philippines

c. Speaker of the House of Representatives

d. Supreme Court Chief Justice

15. The Intellectual Property Office is structured into __ bureaus.

a. 5
b. 6

c. 7

d. 8

16. Which of the following is not a qualification for appointment of the Direct General?

a. He/she must be a natural born citizen.

b. He/she must hold a college degree.

c. He/she must be of proven competence, integrity, probity, and independence.

d. He/she must be at least 40 years old.

17. Which of the following bureaus has the role of supporting the examination and search
conducted by the other bureaus in the course of their respective functions?

a. Documentation, Information and Technology Transfer Bureau

b. Bureau of Legal Affairs

c. Management Information Services and EDP Bureau

d. Bureau of Patents

18. Which of the following statements is incorrect?

a. The Documentation, Information, and Technology Transfer Bureau shall register

technology transfer arrangements and settle disputes concerning the payments made on the
said transaction.

b. The Bureau of Trademarks shall perform examination on the application for

registration of marks, geographic indications, and other industrial designs.

c. The Bureau of Legal Affairs shall exercise original jurisdiction with regards to complaints
for violations of law involving intellectual property rights.
d. The Management Information Services and EDP Bureau facilitates the purchase and
maintenance of equipment, and the design and maintenance of systems, among its other
functions stated in the act.

19. How long is the term of protection awarded to layout design registrations?

a. 5 years, with renewal

b. 5 years, without renewal

c. 7 years

d. 10 years

20. Which is not a requisite for the registration of a utility model?

a. Inventive step

b. Novelty

c. Industrial applicability

d. Choices b and c.

21. In case that an employee makes an invention in the course of his employment contract,
with whom shall the patent belong?

a. The employer if the inventive activity is not part of the employee’s regular duties.

b. The employee if the invention is the result of the performance of his regularly assigned
duties.

c. The employee if the inventive activity is not a part of his regular duties.

d. Either a or b.

22. The following are remedies available to the patentee upon filing a civil complaint before
a court of competent jurisdiction except:

a. Recovery of the damages sustained plus attorney’s fees and other expenses of litigation.
b. Disposal of the infringing goods, materials and implements predominantly used in the
infringement.

c. To secure an injunction for the protection of his rights.

d. Imprisonment of the infringer for the period of not less than six (6) months but not
more than three (3) years.

23. Which of the following describes the difference/s between a utility model and a
patentable invention?

I. The requisite having an inventive step is not applicable to utility models.

II. The maximum term of protection for utility models shall only be up to seven years from
the date of application, while a patentable invention shall be protected for 20 years from the
date of its application.

III. Application for registration of utility models does not require a substantive examination.
Its application is less complicated than that of patentable invention’s.

a. I only

b. I and II

c. I and III

d. I, II, and III

24. If the patent is already granted by the Office, what remedy remains available to the true
and actual inventor?

a. Request that he be substituted as the patentee.

b. File a new application but filing date will retroact to the original filing date.

c. Seek cancellation of the patent.

d. Both a and c.
25. Which of the following shall be a reason of a patent cancellation?

I. The invention exhibits novelty.

II. The patent did not disclose the invention in a manner sufficiently clear and complete for
it to be carried out by any person skilled in the art.

III. It is contrary to public order or mortality.

a. III only

b. II and III

c. I and III

d. I only

Submitted by:
Group 3
▪ Edora, Christine B.
▪ Esguerra, Chenelyn A.
▪ Gamit, Lliena Jane D.
▪ Milanes, Whizelle O.
▪ Ramos, Maria Isabel S.
▪ Reyes Jr., Arnel A.
▪ Sison, Jervee A.
▪ Vergara, Queen Ernna F.
▪ Villanueva, Jefferson Ivan M.
 Multiple Choice Questions (MCQs)

BANK SECRECY LAW

1. The following are the government departments and instrumentalities allowed to examine
deposits and bond investments given the appropriate scenarios listed under the law.
Which is not?
a. Department of Finance
b. Commission on Audit
c. Monetary Board
d. Presidential Commission on Good Governance

2. This government subdivision, in some cases, need not to acquire court approval for it to
proceed to the examination of deposit information when the cause involves
the concealment of the origins of illegally obtained money, typically by means of transfers
involving foreign banks or legitimate businesses.
a. PDIC
b. BSP
c. AMLC
d. Monetary Board

3. Upon the order of a competent court, the following cases constitutes an exception to the
bank secrecy law. Which is not?
a. Unexplained wealth
b. Bribery or dereliction
c. Money deposited is the subject of the litigation
d. Regular Annual Audits

4. Which of the following are accounts covered by the bank secrecy law?
a. Trust account
b. Time deposit account
c. Investment in government bonds
d. All of these

5. These are money or funds placed with a bank that can be withdrawn on the depositor’s
order or demand such as those in the form of savings, current and time deposits.
a. Withdrawals
b. Deposits
c. Investments
d. Marketable securities
6. This is a request for the production of documents, or a request to appear in court or other
legal proceeding.
a. Temporary Restraining Order
b. Subpoena duces tecum
c. Subpoena
d. Warrant

7. This is a court order requiring the person subpoenaed to produce books, documents or
other records under his or her control at a specified time/place in a court hearing or a
deposition.
a. Temporary Restraining Order
b. Subpoena duces tecum
c. Subpoena
d. Warrant

8. The following conditions indicates that the Ombudsman may exercise its power to
subpoena deposit information of a government official. Which is not?
a. a case already concluded
b. the account must clearly be identified
c. inspection is limited to the subject matter
d. bank personnel and account holder shall be present during inspection

9. These are the requisites for the inquiry by a BIR Commissioner into the deposit information
of a specific taxpayer’s tax information be valid under the law:
a. A request
b. Made by a foreign tax authority
c. In pursuance to a tax treaty
d. All of the above

10. Choose the correct answer.

i. Statement 1: Foreign currency deposits are generally exempt from
garnishment.
ii. Statement 2: To encourage the people to deposit their money in banking
institutions is a purpose why RA 1405 was imposed.
a. Statement 1 is true.
b. Statement 2 is true.
c. Both statements are true.
d. Both statements are false.
Additional:

1. Trust Accounts are covered by the Bank Secrecy Law. (T)

2. Cases wherein there were probable cause of money laundering is considered an exception to
the absolute confidentiality clause in the bank secrecy law and could be applied sometimes
even without the order of the court. (T)
3. Terrorism cases could be the reason for exemption under the bank secrecy law. (T)
4. An examination conducted by an auditor which for the bank’s regular audit and will be for
the sole usage of the bank is considered an exemption under the law. (F)
5. A consented with the release of his bank deposit information through a phone call wherein
the manager of the bank was present in the scenario. This counts as an exception under the
bank secrecy law. (F)
6. Investments in government bonds are covered by the bank secrecy law. (T)
7. Investments in government bonds are equity securities which are unconditional obligations
of the State, backed by its full taxing power. (F)
8. Attachment is the process of seizing property of the debtor that is in the possession of a third
party. (F)
9. Garnishment is the process of seizing property of the debtor that is in the debtor's possession.
(F)
10. The purpose of RA 1405 is to encourage private hoarding so that the same may be properly
utilized by banks in authorized loans to assist in the economic development of the country.
(F)
11. For the purpose of determining the gross estate of a deceased depositor, his/her bank deposit
information may be looked into. (T)
12. The turnover to the CIR of the amount in bank accounts as may be sufficient to collect
delinquent taxes is an act that does not violate the absolute confidentiality clause of RA 1405.
(T)
13. Garnishment poses no violation of the Bank Secrecy Law since the amount of deposit is not
actually disclosed. (T)
14. Given a case wherein the deposit information of a certain depositor was examined even
without the clear identification of the specific account does not violate the bank secrecy law.
(F)
15. Reports of banks to AMLC with regards to suspicious transactions can be considered an
exception under the law. (T)
 UNCLAIMED BALANCES ACT

1. Which of the following statements is/are true?

I. The publication of the list of unclaimed balances is intended to safeguard the right of the
depositors, their heirs, and successors to due process.

II. Is the intent of the law to force depositors into litigation and defense of their rights, as the state
is the only interested in escheating balances that have been abandoned and left without an
owner.

a. Only I

b. Only II

c. Both are true

d. Both are false

2. Which of the following statements is/are true?

I. Before filing the sworn statement, the bank, building and loan association, and trust corporation
shall communicate with the person in whose favor the unclaimed balance stands at his last
known place of residence or post office address.

II. If the depositor simply does not wish to touch the funds in the meantime, but still asserts
ownership and dominion over the dormant account, then the bank is no longer obligated to include
the account in its sworn statement

a. Only I

b. Only II

c. Both are true

d. Both are false

3. It refers to the judicial process in which the State, by virtue of its sovereignty, steps in and
claims abandoned, left vacant, or unclaimed property, without there being an interest person
having a legal claim thereto.

a. Eviction Proceedings

b. Escheat Proceedings

c. Nullity Proceedings
d. Annulment Proceedings

4. In order for a deposit to be considered as covered by the Unclaimed Balances Act, the person
must be known to be dead or has not made further deposits or withdrawals for a period of:

a. At least 3 years

b. At least 5 years

c. At least 10 years

d. At least 20 years
 TRUTH IN LENDING ACT

1. The following are the information that the auditor needs to furnish before the
consummation of the transaction. Which is not?

a. Charges in relation to the transaction

b. Total amount to be financed
c. Finance charge in pesos or centavos
d. Compound annual rate on the outstanding unpaid balance

2. The following are the information that the auditor needs to furnish before the
consummation of the transaction. Which is not?

a. List price or deliver price

b. Amounts credited as down payment or trade in
c. Difference between cash price and down payment/trade in
d. All of these shall be included.

3. A person as defined by RA 3765 shall include the following, except:

a. Partnership
b. Individual
c. Foreign Government
d. All of these are considered persons.

4. These all falls under the definition of credit. Which is not?

a. Loan
b. Advance
c. Chattel Mortgage
d. Rebates

5. This an arrangement in which someone buys something such as a new car or washing
machine at a reduced price by giving their old one, as well as money, in payment.
a. Down payment
b. Barter/exchange
c. Trade-in
 d. Trade-off

6. The simple annual interest charged on Juan Dela Cruz’s loan is 3%. If his outstanding
balance is Php 1,500, how much shall be he be entitled to if the creditor had failed to
disclose any information in violation of this RA 3765?
a. 90
b. 2000
c. 100
d. 3,000

7. The deadline for the recovery of such compensation for the penalty is:
a. 1 month
b. 2 years
c. 6 months
d. 1 year

8. Select which statement is incorrect.

i. Statement 1: Willful violation constitutes a graver penalty.
ii. Statement 2: No punishment or penalty provided by this Act shall apply to
the Philippine Government or any agency or any political subdivision
thereof

a. Statement 1
b. Statement 2
c. Both
d. Neither

9. What is the interest rate that should be imposed by a lending company?

a. Legal interest of 6%
b. 12%
c. There are no ceilings set for the imposition of interest rates
d. Variable rate, depending on sales or other indicators
 10. Choose which of the two are correct.
i. Statement 1: By default, a compound interest could be imposed in all
cases without any requirements attached on its imposition.
ii. Statement 2: The imposition of usurious interest rates such as “5 -
6 money lending” is illegal.

a. Statement 1
b. Statement 2
c. Both
d. Neither

Additional:

1. The purpose of RA 3765 is to guarantee a full disclosure of such cost with a view of
preventing the uninformed use of credit to the detriment of the national economy. (F)
2. Another purpose of the Truth in Lending Act is to protect its citizens, including the
government from a lack of awareness of the true cost of credit to the user. (F)
3. The “Board” mentioned in the Act multiple times refers to the Board of Directors and
Trustees. (F)
4. A deed of trust falls under the definition of credit. (T)
5. For it to qualify under the definition of credit, time is of essence; that is, the delivery shall
be made in the present and no future delivery shall be considered. (F)
6. Discounts fall under the legal definition of finance charge. (T)
7. Service charges fall under the legal definition of finance charge. (T)
8. An association is considered a person by RA 3765. (T)
9. Under the definition of a person under RA 3765, the Philippine Government and its political
subdivisions are not included. (F)
10. The interest paid depending on the stipulated frequency is based on the original balance
of the principal, regardless of the succeeding transactions after the borrowing. (F)
11. Information to be furnished by the creditor before the consummation of the transactions
includes the difference between the list price or delivered price of the property or service
to be acquired and the amounts, if any, to be credited as down payment and/or trade-in.
(F)
12. The finance charge shall be expressed in terms of pesos and centavos. (T)
13. The Bangko Sentral ng Pilipinas personally prescribes such rules and regulations as may
be necessary or proper in carrying out the provisions of RA 3765. (F)
14. Any creditor who in connection with any credit transaction fails to disclose to any person
any information in violation of RA 3765 shall be liable to such person in the amount of
P1000 or in an amount equal to twice the finance charged required by such creditor in
connection with such transaction. (F)
15. If any person is entitled to recovery and such shall be subject to court proceedings, the
creditor shall be liable for reasonable attorney's fees and court costs as determined by the
court. (T)
 AMLA

1. All of the following are covered entities/persons, except:

a. Jewelry dealers
b. Real estate developers
c. Lawyers acting as independent legal professionals
d. Offshore gaming operators

2. It refers to both asset freezing and prohibition to prevent funds or other assets from being
made available, directly or indirectly, for the benefit of any individual, natural or legal
persons or entity designated.
a. Transnational investigations and prosecution
b. Targeted terrorism financing
c. Proliferation financing
d. Targeted financial sanctions

3. For a transaction with a real estate developer to be included as a covered transaction, the
single cash transaction must be in excess of:
a. ₱7,000,000
b. ₱7,500,000
c. ₱750,000
d. ₱500,000

4. Select 3 possible indicators to look for in Money Laundering.

I. Unusual volume of payment destinations, often with the same provider
II. Player wagers on both casino and sportsbook
III. Numerous withdrawals, just under the qualifying threshold
IV. Player uses an E-wallet
V. Multiple and frequent deposits followed by multiple and frequent withdrawals, either shortly
afterwards or overlapping further deposits

a. I, III, V
b. I, II, III
c. II, III, IV
d. III, IV, V
 5. Who is the chairman of the Anti-Money Laundering Council?
a. The President of the Philippines
b. The Chairman of the Securities and Exchange Commission
c. The Governor of the Bangko Sentral ng Pilipinas
d. The Secretary of Finance

6. Statement 1: All records of all transactions of covered institutions shall be maintained and
safely stored for 10 years from the date of transactions under the AMLA.

Statement 2: If the report of a covered institution does not result to any criminal
prosecution under the AMLA, the person reported may file a suit against the reporting
institution for violation of the law on secrecy of bank deposits.

a. Only Statement 1 is true.

b. Only Statement 2 is true.
c. Both statements are true.
d. Both statements are not true.

7. Proliferation financing refers when a person:

I. Asset freezing
II. Makes available an asset
III. Provides a financial service
IV. Prohibition to prevent funds or other assets for an entity
V. Conducts a financial transaction; and the person knows that, or is reckless as to whether,
the asset, financial service or financial transaction is intended to, in whole or in part,
facilitate proliferation of weapons of mass destruction

a. I, II, III
b. II, III, V
c. I, IV, V
d. I, II, IV, V
e. All of the above

8. RFLIB Bank received a deposit of ₱600,000 from Mr. PB in a single day. Is RFLIB Bank
required to report the deposit to the AMLC?
a. Yes, since the amount exceeded P500,000.
b. No, since there is no probable cause that the money came from predicate crimes
enumerated under the AMLA.
c. No, since Mr. PB has not yet been accused of a crime enumerated under the AMLA.
d. No, since Mr. PB has not yet been convicted of a crime enumerated under the AMLA.

9. True or False
I. Should a transaction be determined to be both a covered and a suspicious
transaction, it shall be reported as a suspicious transaction.
II. The Court of Appeals, upon application ex parte by AMLC and before
determination that probable cause exists that any monetary instrument or
property is in any way related to an unlawful activity, may issue a freeze order
which shall be effective immediately (for a period of 25 days unless extended by
the court upon application by the AMLC).
III. Upon determination that probable cause exists that any monetary instrument or
property is in any way related to an unlawful activity or a money laundering
offense, the AMLC shall file with the Sandiganbayan, through the Office of the
Vice President, a verified petition for civil forfeiture.
IV. The punishment of imprisonment ranging from three (3) to eight (8) years and a
fine of not less than Three hundred thousand Philippine pesos (Php300,000.00)
but not more than Eight hundred thousand Philippine pesos (Php800,000.00),
shall be imposed on a person convicted for a violation under Section 9-C
Reporting of Covered and Suspicious Transactions or Section 8-A Information
Security and Confidentiality of this Act.
V. A document is authenticated if the same is signed or certified by a judge,
magistrate or equivalent officer in or of, the requesting State, and authenticated
by the oath or affirmation of a witness or sealed with an official or public seal of a
minister, secretary of State, or officer in or of, the government of the requesting
State, or of the person administering the government or a department of the
requesting territory, protectorate or colony.

a. All of the statements are false

b. Only two statements are true
c. Only three statements are true
d. Only four statements are false
e. Only one statement is true

10. Covered institutions shall report to the AMLC all covered transactions:
a. Within 5 working days from occurrence thereof
b. Within 10 working days from occurrence thereof
c. Within 15 working days from occurrence thereof
d. Within 20 working days from occurrence thereof
Submitted by:

Group 3

▪ Edora, Christine B.

▪ Esguerra, Chenelyn A.

▪ Gamit, Lliena Jane D.

▪ Milanes, Whizelle O.

▪ Ramos, Maria Isabel S.

▪ Reyes Jr., Arnel A.

▪ Sison, Jervee A.

▪ Vergara, Queen Ernna F.

▪ Villanueva, Jefferson Ivan M.

 PDIC Law
MULTIPLE CHOICE QUESTIONS

1. Why is Philippine Deposit Insurance Corporation created?

a. To maintain price stability conducive to balanced and sustainable economic
growth
b. To promulgate and implement policies, rules and regulations governing the
operations of entities engaged in insurance and pre-need activities
c. To formulate revenue policies that will ensure funding of critical government
programs that promote welfare among our people and accelerate economic
growth and stability
d. To promote and safeguard the interests of the depositing public by way
of providing permanent and continuing insurance coverage on all
insured deposits

2. Statement 1: PDIC shall enjoy administrative autonomy but not fiscal autonomy.
Statement 2: PDIC is an attached agency of Insurance Commission.
a. Both are true c. I is true; II is false
b. Both are false d. I is false; II is true

3. The PDIC Board of Directors is composed of:

a. 5 members c. 7 members
b. 5 members but not d. 9 members
exceeding 15 members

4. The following are members of the PDIC Board of Directors:

I. Secretary of Finance
II. BIR Commissioner
III. Insurance Commissioner
IV. BSP Governor
V. PDIC President
VI. SEC Commissioner
a. I, III, IV, V, VI c. I, IV, V
b. I, III, IV, V d. All of the above

5. Statement 1: The PDIC President shall be the Chairman of the Board.

 Statement 2: Both the Secretary of Finance and the BSP Governor may designate an
alternate official with a rank not lower than assistant secretary or its equivalent
with written authority from the Secretary of Finance.
a. Only statement 1 is false c. Both are true
b. Only statement 1 is true d. Both are false

6. How can one assume the position of the President of the PDIC?
a. Through an appointment by the President of the Philippines
b. Through an appointment by the President of the Philippines from a
shortlist prepared by the Governance Commission for Government-
Owned or -Controlled Corporations
c. Through an election with a majority vote of all Board members
d. Through an appointment by the Secretary of Finance

7. Statement 1: The PDIC President shall be the Vice Chairman of the Board.
Statement 2: Both the Secretary of Finance and the BSP Governor shall have no
compensation.
a. Only statement 2 is false c. Both are true
b. Only statement 2 is true d. Both are false

8. What is the term of the PDIC president?

a. 3 years c. 6 years
b. 4 years d. 10 years

9. The Board members coming from the private sector shall hold office for:
a. 6 years with no reappointment
b. 6 years subject to one reappointment
c. 6 years subject to two reappointments
d. Two 3-year terms

10. The following are the qualifications for membership in the PDIC Board:
I. Good moral character
II. Unquestionable integrity and responsibility
III. Known probity and patriotism
IV. Recognized competence in economics, banking and finance, law,
management administration, mathematics, or insurance
V. 5 years of meaningful experience in actuary
VI. at least thirty-five (35) years of age
VII. at least forty (40) years of age
 a. I, II, III, IV, VI c. I, II, III, IV, VII
b. I, II, III, VI d. I, II, III, V, VI

11. The appointive members of the Board shall be disqualified from holding any office,
position or employment in any insured bank for the duration of their tenure or term
of office and for a period of:

a. one year thereafter

b. two years thereafter
c. five years thereafter
d. the appointive members can immediately hold position after the duration of
their tenure in PDIC as long as there is no conflict of interest

12. Which of the following are the valid reasons for removal of a director by the
President of the Philippines:
I. If the member is physically or mentally incapacitated that he or she cannot
properly discharge his or her duties and responsibilities, and such incapacity
has lasted for more than six (6) months
II. If the member is guilty of acts or operations which are of fraudulent or illegal
character or which are manifestly opposed to the aims and interests of the
PDIC
III. If the member no longer possesses the qualifications specified in this Act
IV. If the member does not meet the standards for performance based on the
evaluation by the Governance Commission for Government-Owned or -
Controlled Corporations
a. II, III, and IV c. I only
b. III and IV d. All of the above

13. What constitutes a quorum for purposes of R.A. 3591 as amended by R.A. 10846?
a. 4 members c. 6 members
b. 5 members d. All members

14. Statement 1: All decisions of the Board of Directors shall require the concurrence of
at least four (4) members.
Statement 2: Any member of the Board of Directors with personal or pecuniary
interest in any matter in the agenda of the Board of Directors shall disclose his or
her interest to the Board and shall recuse from the meeting when the matter is
taken up. The minutes shall reflect the disclosure made and the recusal of the
member concerned.
 a. Both are false c. Both are true
b. Only Statement 2 is false d. Only Statement 2 is true

15. Which of the following are included in the authority of the Board?
I. To approve and issue rules and regulations for banks and the
depositing public as it considers necessary for the effective discharge
of its responsibilities
II. To act as the policy-making body of the Corporation and constitute
Board committees to oversee the management, operations and
administration of the Corporation
III. To establish a human resource management system which shall
govern the selection, hiring, appointment, transfer, promotion, or
dismissal of personnel. Such system shall aim to establish
professionalism and excellence at all levels of the Corporation in
accordance with sound principles of management
IV. To approve a compensation structure as an integral component of the
Corporation’s human resource development program based on job
evaluation studies and wage surveys, and revise the same as it may
deem necessary.
V. To appoint, establish the rank, fix the remuneration, benefits,
including health care services through a Health Maintenance
Organization (HMO) and medical benefits other than those provided
for under Republic Act No. 7875, as amended, and remove any officer
or employee of the Corporation, for cause, subject to pertinent civil
service laws
VI. To approve policy on local and foreign travel, and the corresponding
expenses, allowances and per diems, of officers, employees, agents of
the Corporation, which shall be comparable with the expenses,
allowances and per diems of personnel of other financial institutions
based on prevailing market standards, notwithstanding the provisions
of Presidential Decree No. 1177, Executive Order No. 292, Executive
Order No. 248, as amended, Executive Order No. 298, and similar laws
VII. To adopt an annual budget for, and authorize such expenditures by
the Corporation, as are in the interest of the effective administration
and operation of the Corporation
VIII. To approve the target level of the Deposit Insurance Fund (DIF) and
the methodology for determining reserves for insurance and financial
assistance losses
 IX. To review the organizational set-up of the Corporation and adopt a
new or revised organizational structure as it may deem necessary for
the Corporation to undertake its mandate and functions
X. To design, adopt and revise, as it may deem necessary, an early
separation plan for employees of the Corporation to ensure
availability of a human resource pool qualified and capable of
implementing the Corporation’s authorities under this Charter in a
manner responsive and attuned to market developments, and to
provide incentives for all those who shall be separated from the
service. Notwithstanding any law to the contrary, these incentives
shall be in addition to all gratuities and benefits the employee is
entitled to under existing laws
XI. To promote and sponsor the local or foreign training or study of
personnel in the fields of banking, finance, management, information
technology and law. Towards this end, the Corporation is hereby
authorized to defray the costs of such training or study. The Board
shall prescribe rules and regulations to govern the training or study
programs of the Corporation.

a. I, II, III, IV c. All except XI

b. I, II, III, V, VI, VIII d. All of the above

16. The following are the powers and duties of the President of the PDIC except:
I. To prepare the agenda for the meeting of the Board and to submit for
the consideration of the Board the policies and measures which he
believes to be necessary to carry out the purposes and provisions of
this Act
II. To execute and administer the policies and measures approved by the
Board
III. To direct and supervise the operations and internal administration of
the Corporation in accordance with the policies established by the
Board. The President may delegate certain of his administrative
responsibilities to other officers of the Corporation, subject to the
rules and regulations of the Board.
IV. To represent the Corporation in all dealings with other offices,
agencies and instrumentalities of the government and with all other
persons or entities, public or private, whether domestic, foreign or
international, upon prior authority of the Board
V. To authorize, with his signature, upon prior authority of the Board,
contracts entered into by the Corporation, notes and securities issued
 by the Corporation, and the annual reports, balance sheets, profits and
loss statements, correspondence and other documents of the
Corporation. The signature of the President may be in facsimile
wherever appropriate.
VI. To represent the Corporation, either personally or through counsel,
including private counsel, as may be authorized by the PDIC Board, in
any legal proceeding or action
VII. To delegate, with the prior approval of the Board of Directors, his
power to represent the Corporation, as provided in subsections (d)
and (f) of this Section, to other officers of the Corporation
VIII. To exercise such other powers as may be vested in him by the Board.

a. I, II, III, IV
b. IV only
c. IV and V
d. None of the above

17. What is the maximum deposit insurance coverage per depositor of a closed bank?
a. 250,000
b. 500,000
c. 750,000
d. 1,000,000

18. Statement 1: In determining such amount due to any depositor, there shall be added
together all deposits in the bank maintained in the same right and capacity for his or
her benefit either in his or her name or in the name of others.
Statement 2: If a bank has one or more branches, the main office and all branch
offices are considered as separate banks.
a. Only Statement I is true
b. Only Statement II is true
c. Both are true
d. Both are false

19. The Corporation in coordination with the Bangko Sentral ng Pilipinas has the power
to:
i. conduct special examination if there an unsafe or unsound bank
practice
ii. examine deposit accounts in case there is a threat of impending
closure
a. Only statement 1 is correct.
 b. Only statement 2 is correct.
c. Both statements are correct.
d. Both statements are incorrect.

20. Select which statement/s is/are incorrect.

i. The provident fund may consist of amounts from the proceeds
gathered upon the liquidation of the bank.
ii. The closed bank is not liable for penalties and surcharges for late
payment and non-payment of taxes of Real Property Taxes.
a. Statement 1
b. Statement 2
c. Both statements.
d. Neither of the two.

21. The following are the powers of examiners when examining closed banks. Which is
not?
a. Administer oaths
b. Compel the bank to present full and detailed report of its condition
c. Examine, take and preserve testimonies
d. Thorough examination of all affairs of the bank

22. As per the requirement by the Board of Directors, insured banks shall make
“reports of condition” and non-compliance with such is subject to a penalty of
10,000 each day from the day of such failure.
a. True.
b. False. Board of Directors shall be “Bangko Sentral ng Pilipinas”.
c. False. No report shall be submitted at all.
d. False. 10,000 shall be 15,000.

23. Identify which statement/s is/are correct.

iii. Statement 1. An officer of the receiver cannot directly or indirectly be
an officer, director or stockholder of any bank unless authorized.
iv. Statement 2. The receiver’s personnel conducting the examination of
the closed bank is not allowed to receive gifts not of value.
a. Statement 1.
b. Statement 2.
c. Both statements.
d. Neither of the two.

24. The following are the considerations when determining an appropriate resolution
method. Which is not?
a. availability of qualified investor
 b. least cost to the DIF
c. Assessed value of assets and liabilities
d. interest of the public

25. According to the PDIC law, these are the modes of liquidation:
i. Piecemeal Liquidation
ii. Conventional Liquidation
iii. Purchase of assets and/or assumption of liabilities
iv. Lumpsum Liquidation
a. I and II
b. II and IV
c. II and III
d. III and IV

26. The receiver may cancel contractual obligations if and only if it is:
v. reasonably disadvantageous
vi. not necessary for liquidation
a. I only
b. II only
c. Both I and II
d. A receiver doesn’t have such authority at all.

27. Which of the following may be considered as an insured deposit?

I. Savings deposit
II. Certificates of time deposit
III. Foreign currency deposit

a. I only
b. I and II only
c. I and III only
d. I, II, and III

28. Statement 1: Foreign currency deposits are considered as insured deposits under
the PDIC Law.
Statement 2: Deposits payable outside the Philippines are considered as insured
deposits under the PDIC Law

a. Only Statement 1 is true.

b. Only Statement 2 is true.
c. Both statements are true.
d. Both statements are not true.
29. A depositor is not required to file claims with the PDIC if his accounts have a balance:
 a. of less than P100,000
b. not exceeding P100,000
c. of less than P50,000
d. not exceeding P50,000

30. A depositor must file his claim within:

a. 6 months from actual takeover of the closed bank
b. 1 year from actual takeover of the closed bank
c. 2 years from actual takeover of the closed bank
d. 3 years from actual takeover of the closed bank

31. Statement 1: PDIC may require proof of claims to be filed before paying the insured
deposits
Statement 2: In any case, where the PDIC is not satisfied as to the viability of a claim
for an insured deposit, it may require final determination of a court of competent
jurisdiction before paying such claim.
a) Only Statement 1 is true.
b) Only Statement 2 is true.
c) Both statements are true.
d) Both statements are false.

32. The penalty of imprisonment of not less than ten (10) years but not more than twelve
(12) years or a fine not less than Five hundred thousand pesos (P500,000.00) but not
more than Ten Million Pesos (P10,000,000.00), or both, at the discretion of the court
shall be imposed upon:

a) Any depositor who files a fictitious and/or fraudulent claim for deposit
insurance.
b) Any bank officer who certifies to the validity of the deposit liabilities which
is subsequently verified to be fictitious and/or fraudulent
c) Any law enforcement officer or local government official who refuses or fails
to assist the receiver in the service of the notice of closure
d) A and B
e) A, B, and C

33. Statement 1: All notes, debentures, bonds, or such obligations issued by the
Corporation shall be exempt from taxation both as to principal and interest
Statement 2: The Corporation may issue notes, debentures, bonds, or other debt
instruments without the approval of the President of the Philippines, as long as these
shall not be guaranteed by the national government.
a) Only Statement 1 is true.
 b) Only Statement 2 is true.
c) Both statements are true.
d) Both statements are false.

34. It occurs whenever a deposit account with an outstanding balance of more than the
statutory maximum amount of insured deposit maintained under the name of natural
or juridical persons is broken down and transferred into two (2) or more accounts in
the name/s of natural or juridical persons or entities who have no beneficial
ownership on transferred deposits in their names within one hundred twenty (120)
days immediately preceding a closure order issued by the Monetary Board of the
Bangko Sentral ng Pilipinas for the purpose of availing of the maximum deposit
insurance coverage
a) Division of deposits
b) Separation of deposits
c) Splitting of deposits
d) Partition of deposits

PROBLEMS
1. Depositor Renjunriah owns a savings account in Bank NCTanked with a balance of
Php 200,000. Aside from the savings account, Depositor Renjunriah also opened a
current account with Bank NCTanked with a balance of Php 1,000,000. In 2021,
Bank NCTanked was oreder to closed by the Monetary Board because of insolvency.

Question: How much can Renjunriah recover from PDIC?

Answer: Php 500,000

2. Seungkwayonce and Vernon-Z have the following account balanced with Verkwan
Bank:

Seungkwayonce – Php 500,000

Vernon-Z – Php 500,000
Seungkwayonce and Vernon-Z – Php 500,000

Question 1: Which of the above accounts are insured deposits?

Answer: All of the above are insured deposits.

Question 2: How much can Seungkwayonce recover from PDIC?

Answer: Php 750,000
3. The bank records of Riff Bank show the following joint accounts and their balances:

Mariah Carey and/or Whitney Houston – Php 500,000

Mariah Carey and/or Beyonce – Php 500,000
Mariah Carey and/or Brandy – Php 500,000

Question 1: Is each account insured?

Answer: Yes.

Question 2: How much can Mariah Carey recover from PDIC?

Answer: Php 500,000

4. How much is King Yuji Nishida’s insured deposit if he has the following deposit
accounts in the same bank?

ACCOUNT NAME Deposit in Philippine Pesos

Yuji Nishida by Bryan Bagunas 100,000

Yuki Ishikawa For the Account of Yuji 100,000

Nishida
Marck Espejo In Trust For Yuji 100,000
Nishida
Yuji Nishida Trading (Sole 700,000
Proprietorship)

Answer: Php 500,000

5. How much is Kween Serena Williams insured deposit if she has the following joint
deposit accounts in the same bank?

ACCOUNT NAME Deposit in Philippine Pesos

Serena Williams or Naomi Osaka 500,000

Serena Williams and Naomi Osaka 1,000,000

 Serena Williams and/or Naomi Osaka 1,000,000

Answer: Php 500,000

6. How much is Rina Sawayama’s insured deposit for all her single and joint accounts
in the same bank?

ACCOUNT NAME Deposit in Philippine Pesos

All single accounts of Rina 1,000,000

Sawayama in XS Bank Branch 1

All joint accounts of Rina 2,500,000

Sawayama in XS Bank Branch 2

Answer: Php 1,000,000

7. PDIC vs. Banco Carmona

When PDIC took over the bank, important bank documents and records were
found to be missing. PDIC demanded the immediate turnover of the missing
documents and records but respondents refused to comply and provided
unsatisfactory explanations. The missing documents and records were necessary to
enable PDIC to pay deposit insurance claims, and for PDIC to determine the financial
condition of the bank.

Due to the absence of complete bank records and documents, the payment of
deposit insurance claims of depositors of the closed Banco Carmona was considerably
delayed, causing inconvenience to the closed bank’s depositors who could have
immediately accessed their deposits.
A. Question: What exactly is the basis of the PDIC which justifies their filed criminal
charges against the said bank?

Answer: Bank directors, officers, employees and/or agents are expected to exercise
extraordinary due diligence in safeguarding the interests of their depositors. Aside
from that, it had also violated the PDIC Regulatory Issuance No. 2006-2, which
requires that documents and records of the bank must be kept intact within its
premises.
B. Question: What could be the consequences of such criminal liability?

Answer: It will put depositors and the Deposit Insurance Fund (DIF) at risk.

Submitted by:
Group 3
▪ Edora, Christine B.
▪ Esguerra, Chenelyn A.
▪ Gamit, Lliena Jane D.
▪ Milanes, Whizelle O.
▪ Ramos, Maria Isabel S.
▪ Reyes Jr., Arnel A.
▪ Sison, Jervee A.
▪ Vergara, Queen Ernna F.
▪ Villanueva, Jefferson Ivan M.
 INTELLECTUAL PROPERTY LAW
MULTIPLE CHOICE QUESTIONS

1. Which among the choices is not a mandate of the IPO?

a. Development-Oriented
b. Reinforcement
c. Adjudicatory
d. Policy-making
Answer: B

2. Which of the following is not an element for an invention to be patented?

a. Novelty
b. Inventive Step
c. Utility
d. Industrial Applicability
Answer: C

3. Right to patent is given to the one who invents first.

a. True
b. False
Answer: B (Right to a Patent follows the “First to File Rule”)

4. Statement I: Scientific and Mathematical theories are patentable

Statement II: Computer programs and software are patentable.
a. Only statement I is true.
b. Only statement II is true.
c. Both statements are true.
d. Both statements are false.
Answer: D (Statement I: non-patentable; Statement II: non-patentable and are subject to
copyright)

5. What may be the subject of patent protection?

a. Product
b. Processes
c. Improvements
d. All of the above
Answer: D
6. Statement I: Novelty refers to when an invention is considered new if it forms a part of a prior art.
Statement II: An invention involves an inventive step if, having regard to prior art, it is not obvious to
a person skilled in the art.
Statement III: An invention is considered industrially applicable when it can be produced and used in
any industry.
a. Only 1 statement is true.
b. Only 1 statement is false.
c. All statements are true.
d. All statements are false.
Answer: B (Statement I is false; “shall not” be considered new if it forms a part of prior art.)

7. The holder of a process patent can exclude others from the use, transaction in or importation of the
product of his patented process, whether direct or indirect.
A. True
B. False
Answer: A

8. Two devices that do the same work, in substantially the same way, and produce the same result do not
constitute patent infringement as long as there is a slight modification or change introduced.
a. True
b. False
Answer: B (Doctrine of Equivalents)

9. The term of patent shall be:

a. 10 years from the invention.
b. 20 years from the invention.
c. 20 years from the filing date of the application.
d. 10 years from the filing date of the application.
Answer: C

10. The disclosure of an invention earlier than the application date, shall not prejudice the applicant on
the ground of lack of novelty provided that:

Statement I: He applies for a patent within 12 months of such disclosure.

Statement II: Such disclosure was made by the (a) inventor himself, (b) a patent office and the
information was contained in another application filed by the inventor or in an application filed by a
third party, without the knowledge or consent of the inventor, which obtained the information directly
 or indirectly from the inventor, or (c) a third party which obtained the information directly or
indirectly from the inventor.
a. Only statement I is true.
b. Only statement II is true.
c. Both statements are true.
d. Both statements are false.
Answer: C

11. Statement I. Trademark of a business is viewed as the silent salesman.

Statement II. A certificate of registration of a mark shall be prima facie evidence of the validity of the
registration

a. Both statements are true.

b. Both statement are false
c. Only statement I is false
d. Only statement II is false

Answer: A

12. This type of test relies not only on visual traits of the trademark, but it also uses oral and connotative
comparisons as well as the overall impressions of the mark.
a. Holistic test
b. Dominancy test
c. Comparability test
d. Test of similar symbols

Answer: B

13. What is/are the right/s of protection given to an entity owning a well-known mark not registered in the
Philippines claiming that its mark is being used by a third person?

i. It is protected against the use of its trademark for identical or similar goods or services
ii. It is protected against the use of its trademark for goods or services that are not similar or identical

a. i only
b. ii only
c. i and ii
d. neither

Answer: A

14. All are marks which cannot be registered except:

a. Consists of the flag or coat of arms or other insignia of the Philippines or any of its political
subdivisions, or of any foreign nation, or any simulation thereof
b. Consists of elements not contrary to public order or morality
 c. Consists of color alone
d. Consists exclusively of signs that are generic for the goods or services that they seek to identify

Answer: B

15. The duration of protection and rights of trademark is:

a. Within 3 years from filling date
b. Within 6 months from filling date
c. Within 10 year from filling date
d. Within 5 years from date of renewal

Answer: C

16. Statement I. Rights in a tradename are acquired through registration to the Intellectual Property Office
(IPO)
Statement II. Rights in a mark are acquired through adoption and use

a. Only statement I is true

b. Only statement II is true
c. Both statements are true
d. Both statements are false

Answer: D

17. How long is the term of protection for copyright?

a. 10 years
b. 20 years
c. 50 years from filing
d. Lifetime of the author and 50 years thereafter
Answer: D

18. The following are the remedies for copyright infringement except:
a. Injunction
b. Destruction of all infringing copies
c. Cancellation of the copyright
d. Damages, including legal costs and other expenses
Answer: C

19. Assuming the author of a pseudonymous work was revealed on the 48th year from the first
lawful publication, how long shall be the deemed term of protection for the said copyright?
a. 50 years from the date of the publication
 b. Lifetime of the author and 50 years thereafter
c. 50 years from the date of the creation
d. 25 years from the date of creation
Answer: B

20. In case of an audiovisual work, copyright belongs the following except:

a. Author of the Scenario
b. Actor/Actress
c. Producer
d. Film Director
Answer: B

21. Statement I. If a copyright is jointly owned by two or more natural person, one cannot grant
licenses without the prior written or oral consent of the other owner or owners
Statement II. A transfer or assignment of material object implies the transfer, assignment or
licensing of the copyright.
a. Statement 1 is true; Statement 2 is false
b. Only statement 2 is true
c. Both statements are true
d. Both statements are false

Answer: B

22. Copyright or Economic Rights shall consist of the exclusive right to do the following to acts
such as dramatization, translation, adaptation, abridgment, arrangement or other
transformation of the work except:
a. Authorize
b. Prevent
c. Reproduce
d. Carry Out

Answer: C

23. Which of the following is covered by the protection granted to copyrights?

I. Computer Programs
II. Photographic works
III. Musical compositions

a. III only.
b. I and III only
 c. II and III only
d. All of the items are copyrightable.
Answer: D
24. Everglow received a tip from an anonymous person that the President along with an
unidentified woman checked in at a five-star hotel in a prestigious resort town. Everglow called
her friend who is living nearby to confirm with the receptionists if there was indeed such
booking from the President. The friend confirmed the news. Harry was able to eavesdrop the
phone call between Everglow and her friend, and Harry also made investigations of his own.
Everglow, thinking that it was exclusive, quickly drafted an article and published it in her news
site. Harry followed in a minute with his own article, but complete with photographic evidence
which Everglow does not have. Everglow conteded that it was her scoop, and Harry committed
copyright infringement. Did Harry commit copyright infringement?
a. No. Harrys’ articles have picture while Kristy’s article does not have pictures.
b. No. News of the day is a non-copyrightable work.
c. Yes. Harry obtained the information by eavesdropping on Everglow’s call.
d. Yes. Harry’s article came a minute after Everglow’s article was published.
Answer: B

25. The following activities does not constitute copyright infringement, except?

I. Performance of work made accessible to public which is done privately and free of charge.
II. Distribution of published articles in a specialized format for the consumption of blind,
visually and reading-impaired persons.
III. The use made of a work for the purpose of any judicial proceedings or for the giving of
professional advice by a legal practitioner.
IV. The use made of a work by or under the direction or control of the Government.

a. III only.
b. II and IV only
c. I, II, and IV only
d. All of the item does not constitute copyright infringement

Answer: D
Submitted by:

BSA 3-1(Group 4)

Alcazar, Mark Daniel

Antonio, Dhenzel
Aquino, Angela Merice
Austria, Caila Jane
Decelis, Julia Katrina
Hernandez, Lea Nizelle
Pregoner, Erica Mae
Turla, Joemar
Yapan, Queen Angela
 OTHER BANKING LAWS
MULTIPLE CHOICE QUESTIONS

1. The following information are included in the credit transaction contract:

a. amount of interest
b. down payment
c. interest amortization expense
d. itemized finance costs
Answer: C

2. All deposits of whatever nature with banks or banking institutions in the Philippines including
any investment in bonds are covered by Bank Secrecy Law.
a. True
b. False
Answer: B (Only investment in bonds issued by the Government of the Philippines, its
political subdivisions and its instrumentalities are covered)

3. Bank deposits may be examined or disclosed when

a. There is a written permission or consent from the creditor
b. Upon order of court even where the money deposited or invested is not the subject
matter of litigation
c. In cases of impeachment
d. All of the above

Answer: C

4. The Anti-Money Laundering Council can examine bank accounts pursuant to a court order
where there is probable cause that deposits are related to unlawful activity or money laundering
offense.
a. True
b. False
Answer: A

5. Statement I: Savings Accounts are not covered by Bank Secrecy Laws.

Statement II: Investment in government bonds are not covered by Bank Secrecy Law.
a. Only statement I is true
b. Only statement II is true
 c. Both statements are true
d. Both statements are false
Answer: D

6. In order for a deposit to be considered as covered by the Unclaimed Balances Act, the person
must be known to be dead or has not made further deposits or withdrawals for a period of:
a. At least 5 years
b. At least 10 years
c. At least 20 years
d. At least 50 years
Answer: B

7. The Unclaimed Balances Act requires the following information to be included in the sworn
statement of building and loan associations, and trust corporations, except:
a. The names and last known place of residence or post office addresses of the persons in
whose favor such unclaimed balances stand
b. The amount and the date of the outstanding unclaimed balance and whether the same
is in money or in security, and if the latter, the nature of the same
c. The date when the person in whose favor the unclaimed balance stands died, if known,
or the date when he made his last deposit or withdrawal
d. The notice of summons and the written report showing the cause of why the unclaimed
balance should not be deposited with the Treasurer of the Philippines.
Answer: D

8. Who shall initiate or commence an action regarding the proper escheat proceedings in court
under the Unclaimed Balances Act?
a. Treasurer of the Philippines
b. Solicitor General
c. President, cashier of the defendant bank, building and loan association or trust
corporation
d. Managing officer of the defendant bank, building and loan association or trust
corporation
Answer: B

9. The Commissioner of BIR can inquire into bank deposits in an application for:
a. Purpose of determining the gross estate of a deceased depositor
 b. Pursuant to a request for tax information made by a foreign tax authority pursuant to a
tax treaty.
c. Both a and b
d. None of the above. The BIR is not allowed, in any circumstance, to inquire about bank
deposits.
Answer: C

10. The PDIC has the power to issue a subpoena to conduct investigation or inquiry, as well as
examine and access bank accounts and records, provided that (a) there must already be a case
pending in court, (b) the account be clearly identified, (c) the inspection be limited to the
subject matter of the pending case, and (d) the bank personnel and the depositor must be
notified to be present during the inspection.
a. True
b. False
Answer: B (PDIC should be Ombudsman)

11. I. Covered transactions are those that have an amount of 500,000 Pesos and was transacted
within one banking day

II. Monetary instruments does not include those that passes title to another through assignment,
delivery, or endorsement

III. If the amount of the transaction is less than 500,000 pesos and does not commensurate with
the business or financial capacity of the client, then it is not considered as a suspicious
transaction
a. Only two statements are true
b. Only two statements are not true
c. Only statement II is true
d. Only statement I is false
Answer: B

12. The declaration of policy or the Section II of the Anti-Money Laundering Act includes the ff.
except:
a. Preserve and protect the integrity and confidentiality of bank accounts
b. Ensure Philippines will not be used as a money-laundering site
c. Persecute person who is involved in transactions related to an unlawful activity or
offense under this Act
 d. State shall cooperate in cooperate in transnational investigation and persecution of
persons involved in money-laundering act

Answer: C

13. I. Transaction refers to an act establishing any right or obligation or giving rise to any
contractual or legal relationship between the parties
II. Transaction refers to any movement of funds by any means with a covered institution
III. Covered transaction includes transaction which is observed to deviate from the profile of
the client and/or the client’s past transactions with the covered institution
a. Only two statements are true
b. Only two statements are not true
c. Only statement II is true
d. Only statement I is false
Answer: A

14. Who is the chairman of the Anti-Money Laundering Council?

a. The president of the Philippine
b. The Chairman of the Securities and Exchange Commission
c. The Governor of the Bangko Sentral ng Pilipinas
d. The Secretary of Finance

Answer: C

15. Statement 1: The AMLC may inquire into or examine any particular deposit or investment
when there is probable cause that the deposits are related to the crime or unlawful activities.
Statement 2: The freeze order shall be for a period of 180 days unless extended by the court.
a. Only the first statement is true
b. Only the second statement is true
c. Both statements are true
d. Both statements are false
Answer: A

16. Which of the following are done by the AMLC to prevent money laundering?
I. Customer Identification
II. Record-keeping
 III. Reporting of covered and suspicious requirements
a. I only
b. II only
c. I and II only
d. I, II and III
Answer: D

17. A covered transaction involves a transaction in cash or other equivalent monetary instrument
involving a total amount in excess of
a. P500,000 within one banking day
b. P5,000,000 within one banking day
c. P50,000 within once banking day
d. None of the above
Answer: A

18. Statement I. Money Laundering is an extraditable offense

Statement II. In making and executing MLA request by a foreign state and the Philippines
respectively, the principles of mutuality and reciprocity shall, at all times, be recognized.
a. Only Statement 1 is true.
b. Only Statement 2 is true.
c. Both statements are true.
d. Both statements are false.
Answer: C

19. If the offender of malicious reporting under AMLA is a public official or employee, in
addition to the penalties prescribed in RA 9160 (as amended):
a. be deported without further proceedings
b. his license may be suspended or revoked
c. be sentenced to life imprisonment
d. suffer perpetual or temporary absolute disqualification from office
Answer: D

20. If a person transacts or attempts to transact monetary instrument or property knowing that it
involves, or relates to the proceeds of any unlawful activity shall be subjected to how many
years of imprisonment?
a. 2 to 3 years
 b. 4 to 7 years
c. 7 to 14 years
d. 6 months to 1 year
Answer: C

21. When is the effectivity date of AMLA?

a. Within fifteen days before its complete publication in the Official Gazette
b. Within fifteen days after its complete publication in the Official Gazette
c. Within thirty days from its publication
d. Within thirty days before its publication
Answer: B

22. All of the following are clauses in AMLA except:

a. Appropriations Clause
b. Separability
c. Repealing
d. None of the above
Answer: D

23. How much is the initial appropriation to be drawn from the national government?
a. 50,000,000
b. 100,000,000
c. 25,000,000
d. 30,000,000
Answer: C

24. XLM Bank received a deposit of P600,000.00 from Mr. Safemoon in a single day. Is XLM
Bank required to report the deposit to the Anti-Money Laundering Councill (AMLC)?
a. No, since there is no probable cause that the money came from predicate crimes
enumerated under AMLA,
b. Yes, since the amount exceeded P500,000.
c. No, since Mr. Safemoon has not yet been accused of a crime enumerated under AMLA.
d. No, since Mr. Safemoon has not yet been convicted of a crime enumerated under
AMLA.

Answer: B
25. The following statements are the functions of the Anti-Money Laundering Council, which is
not?
Statement I: To require and receive covered or suspicious transaction reports from covered
institutions
Statement II: To freeze any monetary instrument or property alleged to be proceeds of any
unlawful activity
Statement III: To develop educational programs on the pernicious effects of money laundering,
the methods and techniques used in money laundering, the viable means of preventing money
laundering and the effective ways of prosecuting and punishing offenders
a. Only Statement I
b. Only Statement II
c. Statement I and II
d. All statements are function of AMLC

Answer: D
Submitted by:

BSA 3-1(Group 4)

Alcazar, Mark Daniel

Antonio, Dhenzel
Aquino, Angela Merice
Austria, Caila Jane
Decelis, Julia Katrina
Hernandez, Lea Nizelle
Pregoner, Erica Mae
Turla, Joemar
Yapan, Queen Angela
 PDIC ACT
MULTIPLE CHOICE QUESTIONS

1. Consistent with its public policy objectives, the PDIC has the following mandates, EXCEPT:
a. Deposit Insurer
b. Co-regulator of banks
c. Administrator of public insurance schemes
d. Receiver and liquidator of banks
Answer: C

2. Statement 1: Foreign Currency deposits are considered as insured deposits under the PDIC
law.
Statement 2: Deposits payable outside the Philippines are considered insured deposits under
the PDIC law.
a. Only Statement 1 is true.
b. Only Statement 2 is true.
c. Both statements are true.
d. Both statements are false.
Answer: A

3. Investment products such as bonds and securities, trust accounts and other similar instruments
are included in PDIC deposit insurance.
a. True
b. False
Answer: B

4. The following banks are member of the PDIC, except:

a. Banks Incorporated under Philippine Laws
b. Banks Incorporated under Foreign Laws
c. Domestic Branches of Foreign Banks
d. None of the above
Answer: B

5. A joint account regardless of whether the conjunction ‘and’, ‘or’, ‘and/or’ is used, shall be
insured separately from any individually-owned deposit account.
a. True
b. False
 Answer: A

6. If the joint account is held by a juridical person or entity jointly with one or more natural
persons, the maximum insured shall be presumed to belong entirely to:
a. Juridical Person
b. Natural Person
c. Either a or b
d. Neither a or b
Answer: A

7. A depositor with single accounts and joint accounts may have insured deposits of up to Php
1,000,000:
a. True
b. False
Answer: A

8. If the account “Riley for the account of Will”, who is the depositor?
a. Riley
b. Will
c. Cannot be determined
d. Both a and b
Answer: B

9. How much is Walter’s total insured deposit if he has the following four deposit accounts in the
same bank?

ACCOUNT NAME DEPOSIT (Php) INSURED DEPOSIT

Walter 100,000 ?
Skyler for the account of 100,000 ?
Walter
Jesse in trust for Walter 100,000 ?
Walter’s Store (Sole 700,000 ?
Proprietorship)
TOTAL 1,000,000 ?

a. 1,000,000
b. 500,000
c. 300,000
d. 900,000
 Answer: B (100,000+100,000+100,000+200,000; all individual accounts of the depositor
shall be insured to a maximum of 500,000)

10. Harvey maintains P250,000 in XYZ Bank’s Manila Branch and P300,000 in XYZ Bank’s
Japan Branch. In the event of a closure of XYZ Bank, how much is Harvey’s insured deposit?
a. 300,000
b. 250,000
c. 500,000
d. 550,000
Answer: B

11. How much is Amanda Bartolome’s total insured deposit if she has the following three joint
accounts in the same bank?

ACCOUNT NAME DEPOSIT (Php) INSURED DEPOSIT

Amanda Bartolome or 500,000 ?
Julian Bartolome
Amanda Bartolome and 1,000,000 ?
Emmanuel Bartolome
Amanda Bartolome and/or 1,000,000 ?
Jason Bartolome
TOTAL 2,500,000 ?

a. 2,500,000
b. 500,000
c. 1,000,000
d. 1,500,000
Answer: B (250,000+250,000)

12. How much is Peregrin Santos’ total insured deposit if he has the accounts in the same bank?
ACCOUNT NAME DEPOSIT (Php) INSURED DEPOSIT
Peregrin Santos- Savings 600,000 ?
Peregrin Santos and Merry 500,000 ?
Santos- Demand Deposit
Peregrin Santos or Sam 800,000 ?
Santos- Time Deposit
TOTAL 1,900,000 ?

a. 1,000,000
b. 500,000
c. 850,000
 d. 1,900,000
Answer: A
13. Frodo has an individually owned account in Bank ABC located in the Philippines with an
amount of P500,000, and has a joint account in the same bank with Sam with an amount of
P1,000,000. He also has a deposit in Bank XYZ which is also located in the Philippines with
an amount of P500,000. How much of Frodo’s deposit is insured?
a. 500,000
b. 1,000,000
c. 1,500,000
d. 0
Answer: C
14. If Rey is a depositor in East South Bank for 795,000, how much is his insured deposit?
a. 397,500
b. 500,000
c. 795,000
d. 1,000,000
Answer: B

15. Statement I. Under R.A. No. 9576, the PDIC may propose to adjust the MDIC, subject to the
approval of the President of the Philippines, in case of a condition that threatens the monetary
and financial stability of the banking system that may have systemic consequences.
Statement II. All deposit accounts by a depositor in a closed bank maintained in the same right
and capacity shall be added together.
a. Only Statement I is true
b. Only Statement II is true
c. Both statements are true
d. Both statements are false
Answer: C

16. Vincenzo has the following individual and joint accounts with Babel Bank. Determine the
amount of deposit insurance coverage Vincenzo is entitled to if Babel Bank closes?
Ms. Hong in trust for Vincenzo 150,000
Vincenzo by Mr. Nam 55,000
Mr. Jang for the account of Vincenzo 400,000
Vincenzo and/or Gilbert 70,000

a. 675,000
b. 640,000
c. 535,000
d. 570,000
 Answer: C

17. For failure to settle claim of insured depositor, the following shall subject the directors, officers
or employees of PDIC responsible, upon conviction, except:
a. Grave abuse of discretion
b. Gross negligence
c. Bad faith
d. Resolution of issues of facts

Answer: D

18. Who is not required to file a claim?

a. Depositors with valid deposit account balance of ₱100,000 and below, who have no
obligations with the closed bank and have complete and updated addresses in bank
records
b. Depositors with valid deposit accounts with balances of more than ₱100,000
c. Depositors who have outstanding obligations with the closed bank with more than
₱100,000 amount of deposits
d. Depositors with accounts not eligible for early payment regardless of type of account
and account balance per advice of PDIC

Answer: A

19. Who must sign the claim form if the depositor is below 18 years old?

a. Trustee
b. Depositor
c. Parent
d. Agent

Answer: C

20. I. Period to enforce claim is 2 years after actual takeover

II. Depositors with accounts not eligible for early payment regardless of type of account and
account balance per advice of PDIC are not required to file claim.

a. True, false
b. False, True
c. False, false
d. True, true
 Answer: C

21. Statement I. PDIC cannot require proof of claim before paying the insured deposit as it is
against the law.
Statement II. If PDIC is not satisfied as to the validity of a claim for an insured deposit, it may
require final determination of a court of competent jurisdiction before paying such claim

a. True, false
b. False, True
c. False, false
d. True, true

Answer: B

22. Claims settlement operations period, as announced in the Notice to Depositors which can be
found in the following as mentioned in the PDIC law except:

a. PDIC Website
b. Bank premises and conspicuous places within the locality
c. In national/local newspaper
d. All of the above are mentioned in PDIC law

Answer: D

23. Who must sign the claim form in the case of “By” accounts?

a. Trustee
b. Depositor
c. Parent
d. Agent

Answer: D

24. Statement I: A joint account regardless of whether the conjunction ”and”, “or”, or “and/or” is
used shall be insured jointly from single accounts.
Statement II: Unless a different sharing is stipulated in the deposit documents, the insured
amount up to the Maximum Deposit Insurance Coverage of Php500,000 shall be divided
equally between or among co-owners of a joint account.
Statement III: Joint accounts held in the name of a juridical entity and a natural person shall be
presumed to belong solely to the natural person.

a. Statement 3 is False, while Statement 1 and 2 are True

b. Statement 1 and 2 are False, while Statement 3 is True
 c. Statement 1 is True, Statement 2 is True, and Statement 3 is False
d. Statement 1 is False, while Statement 2 and 3 are True
e. Statement 1 and 3 are False, while Statement 2 is True

Answer: E

25. Statement I: In a “By” account, for instance Ana by Ben, Ana is the depositor.
Statement II: In an “In Trust For” (ITF) account, for instance Ana in trust For Ben, Ben is the
depositor.
Statement III: In a “For the Account of” (FAO) account, Ana For the Account of Ben, Ben is
the depositor.

a. All of the statements are not true

b. All of the statements are not incorrect
c. All but Statement 2, are false
d. All but Statement 3 are true

Answer: B
Submitted by:

BSA 3-1(Group 4)

Alcazar, Mark Daniel

Antonio, Dhenzel
Aquino, Angela Merice
Austria, Caila Jane
Decelis, Julia Katrina
Hernandez, Lea Nizelle
Pregoner, Erica Mae
Turla, Joemar
Yapan, Queen Angela
 Intellectual Property Law

Multiple Choice Questions

1. The term intellectual property rights consists of:

i. Trademarks and Service Marks
ii. Layout Designs of Integrated Circuits
iii. Protection of Undisclosed Information
iv. Patents
a. I and IV only
b. I and II only
c. I, III, IV
d. All of the above
2. One of its functions is to exercise original jurisdiction to resolve disputes relating
to the terms of a license involving the author’s right to public performance or other
communication of his work.
a. Bureau of Copyright and Other Related Rights
b. Bureau of Trademarks
c. Bureau of Patents
d. Documentation, Information and Technology Transfer Bureau
3. Under the Administrative, Financial and Human Resource Development Service
Bureau, its role is to publish patent applications and grants, trademark
applications, and registration of marks, industrial designs, utility models,
geographic indication, and lay-out designs of integrated circuits registrations.
a. Patent and Trademark Administration Services
b. Administrative Service
c. Financial Service
d. Human Resource Development Service
4. I. Patentable Inventions refers to any technical solution of a problem in any field of
human activity which is new, involves an inventive step and is industrially
applicable.
II. Aesthetic creations are patentable inventions
 III. Schemes, rules and methods of performing mental acts, playing games or doing
business, and programs for computers are non-patentable inventions
Which of the following statement/s is/are true?
a. II & III only
b. I, II, and III
c. I & III only
d. II only
5. I. The right to a patent belongs to the inventor, his heirs, or assigns.
II. When two (2) or more persons have jointly made an invention, the right to a
patent shall belong to them jointly.
III. Where two or more applications are filed for the same invention, the right to the
patent belongs to the applicant who has the latest/current filing date or priority date.
IV. The patent application shall relate to two or more invention or to a group of
inventions forming several general inventive concept.
Which of the following statement/s is/are true?
a. I & II only
b. I, II, III, and IV
c. I & IV only
d. III, and IV only
6. The term of a patent shall be ____ from the filing date of the application.
a. 30 years
b. 50 years
c. 20 years
d. 25 years
7. Petition to cancel the patent or any claim thereof may be made by any interested
person on any of the following grounds, except
a. the patent does not disclose the invention in a manner sufficiently clear and
complete for it to be carried out by any person skilled in the art
b. the patent is contrary to public order or morality
c. the invention does not form part of a prior art
d. the invention is not new or patentable
8. Statement I: A government agency may exploit the invention even without
agreement of the patent owner.
Statement II: A patent shall confer on its owner the right, where the subject matter
of a patent is a product, to restrain, prohibit and prevent any unauthorized person
or entity from making, using, offering for sale, selling or importing that product.
a. Both statements are true
b. Both statements are false
c. Statement I is true; Statement II is false
d. Statement I is false; Statement II is true
9. Which of the following is false regarding patent infringement?
a. The making, using, offering for sale, selling, or importing a patented product
or a product obtained directly or indirectly from a patented process, or the
use of a patented process without the authorization of the patentee
constitutes patent infringement.
b. The doctrine of equivalents provides that an infringement also takes place
when a device appropriates a prior invention by incorporating its innovative
concept and, although with some modification and change, performs
substantially the same function in substantially the same way to achieve
substantially the same result.
c. Damages cannot be recovered for acts of infringement committed before
the infringer had known, or had reasonable grounds to know of the patent.
d. Under literal infringement, addition rule applies when one makes, uses, or
sells an item that conforms exactly to the patent claim of another.
10. Which of the following is a ground for compulsory licensing?
a. National emergency
b. Public interest requires
c. Exploitation is anti-competitive
d. All of the above
11. A license issued by the Director General of the Intellectual Property Office to
exploit a patented invention without the permission of the patent holder, either by
manufacture or through parallel importation
 a. Voluntary License
b. Compulsory License
c. Transmission of Rights
d. None of the above
12. Any composition of lines or colors or any three-dimensional form whether or not
associated with lines or colors, and such composition or form gives a special
appearance to and can serve as pattern for an industrial product or handicraft.
a. Utility model
b. Industrial design
c. Integrated circuit
d. Layout-design
13. Statement 1: Certificate of Registration may be renewed for a period of 10 years
at its expiration before payment of prescribed fee.

Statement 2: Declaration of actual use shall be filed within 3 years from the date
of filing the application

a. Statement 1 is true
b. Statement 2 is true
c. Both are true
d. None of the above
14. Which of the following are non-registrable marks?
a. Immoral, deceptive or scandalous which may disparage or falsely suggest
connection with persons (living or dead), institutions, beliefs, or national
symbols or bring them into contempt or disrepute
b. Flag or coat of arms or other insignia of the PH or foreign nation or any of
its political subdivisions
c. identical with, or confusingly similar to, or constitutes a translation of a mark
considered well-known internationally (registered or not in the PH)
d. All of the above.
15. Certificate of Registration is considered as:
a. Prima facie evidence of the validity of the registration
b. Registrant’s ownership and his non-exclusive right
 c. Proof of claim
d. All of the above
16. All of the following are true about trade names or business names except;
a. It should not be contrary to public order or morals and if in particular, it is
liable to deceive trade circles or the public as to the nature of the enterprise
identified by that name.
b. It should be protected, even prior to or without registration, against any
unlawful act committed by third parties.
c. It is deemed unlawful if it used by a third party which likely to mislead the
public.
d. The change of its ownership shall be made without the transfer of the
enterprise or part thereof.
17. Which statement/s is/are true?
Statement 1: A registered mark shall have no effect against any person who, in
good faith, before the filing date or the priority date, was using the mark for the
purposes of his business or enterprise.
Statement 2: When the infringer of a registered mark is engaged in business of
printing the mark or infringing materials for others, the infringer is not innocent and
the owner of the right shall be entitled against the infringer on all profits made by
the infringer using the registered mark.
Statement 3: When the infringement is contained in or is part of paid advertisement
in a newspaper, magazine, or other similar periodical or in an electronic
communication, the remedies of the owner of the right shall be limited to an
injunction against the presentation of such advertising matter in future issues of
such newspapers, magazines, or other similar periodicals or in future
transmissions of such electronic communications.
a. 1 only
b. 2 & 3 only
c. 1, 2, & 3
d. 1 & 3 only
18. All of these are true regarding the measure of damages that could be recovered
from the infringement of a registered mark except;
a. reasonable profit which the complaining party would have made, had the
defendant not infringed his rights
 b. the profit which the defendant actually made out of the infringement
c. damages may be tripled when there’s an actual intent to mislead the public
or to defraud the complainant
d. if measure of damages cannot be readily ascertained then the court may
award as damages a reasonable percentage based upon the amount of
gross sales of the defendant or the value of the services in connection with
which the mark or trade name was used
19. Making of one or more copies, temporary or permanent, in whole or in part, of a
work or a sound recording in any manner or form
a. Replication
b. Reproduction
c. Imitation
d. Duplication
20. Following are acts not constitute infringement of copyrights, except;
a. Reproduction or communication to the public by mass media
b. Quotation from published work compatible with fair use and justified its
purpose
c. Computer programs made available to the public for free
d. Recordings made by educational institutions
21. Statement 1: Copyright can be licensed in whole only
Statement 2: Copyright is not deemed licensed inter vivos unless there is written
indication
a. Statement 1 is true
b. Statement 2 is true
c. Both statements are false
d. Both statement are true
22. Copyright owner may deposit two (2) complete copies or reproductions of the work
through which of the following:
a. Personal delivery
b. Registered mail
c. Both a and b
d. None of the above
23. In calculating the term of protection, it shall be deemed to begin:
 a. On the first day of January of the year following the event which gave rise
to them
b. On the first day of January of the current year
c. On the first day of the month following the event which gave rise to them
d. On the last day of the month in which the event which gave rise to them
occurred
24. It is the embodiment of sounds, or of the representations thereof, from which they
can be perceived, reproduced, or communicated through a device.
a. Broadcasting
b. Sound recording
c. Fixation
d. Performers
25. A copyright owner may elect to recover an award of statutory damages for all
infringements in an amount not less than ____.
a. P10,000
b. P20,000
c. P50,000
d. P150,000
26. The natural person whose name is indicated on a work in usual manner as the
author shall not be presumed to be the author of the work.
a. True
b. False
27. Effectivity date of Intellectual Property Law
a. January 1, 1998
b. January 1, 1988
c. February 1, 1988
d. June 19, 1861
BSA 3-1 Group 5
Andoy, Rizza Mae Q.

Cabuyao, Stewart D.

Dela Cruz, Paul Vincent L.

Gamo, Krishia Hanna R.

Molina, Dan Lloyd M.

Pascual, Shiena Rae T.

Pevidal, Elyssa Marie P.

Sales, Katherine Shaey M.

Siarot, Erica G.
 Other Banking Laws

Multiple Choice Questions

1. It is defined as any person engaged in the business of extending credit who requires
as an incident to the extension of credit, the payment of a finance charge.
a. Debtor
b. Creditor
c. Borrower
d. Financer
2. Which of the following does NOT pertain to credit?
a. any loan, mortgage, deed of trust, advance, or discount
b. any conditional sales contract
c. any contract to sell, or sale or contract of sale of property or services
d. none of the above
3. “To protect its citizens from a lack of awareness of the ___________________ to the
user by assuring a full disclosure of such cost…”
a. True cost of credit
b. True cost of debt
c. Actual cost of credit
d. Actual cost of Debt
4. The information that the creditor should furnish the borrower include the following,
except
a. the sum of the amount financed and any down payment/ trade-in
b. the total amount to be financed
c. the charges, individually itemized, related to the transaction
d. the finance charge expressed in terms of pesos and centavos
5. I. Failure of the creditor to disclose required information will be make him liable in the
amount of P100 or in an amount equal to thrice the finance charged required by such
creditor, whichever is greater.
II. The liability of the creditor for failure to disclose the required information shall not
exceed P2,000 on any credit transaction.
 III. Action to recover the penalty may be brought by a person within two years from
the date of the occurrence of the violation, in any court of competent jurisdiction.
IV. In an action to recover the penalty where the person is entitled to a recovery, the
creditor shall be liable for reasonable attorney's fees and court costs as determined
by the court.
Which of the following statement/s is/are true?
a. II & III only
b. I, II, III, and IV
c. II & IV only
d. I only
6. I. No punishment or penalty provided by the Truth in Lending Act shall apply to the
Philippine Government or any agency or any political subdivision thereof.
II. Any person who willfully violates any provision or regulation of the Truth in Lending
Act shall be fined by not less than P1,00 or more than P5,000 or imprisonment for not
less than 6 months, nor more than one year or both.
Which of the following statement/s is/are true?
a. I only
b. II only
c. Both statements are not true
d. Both statements are true
7. Which of the following deposits are covered by Bank Secrecy Law?
a. All deposits of whatever nature with banks or banking institutions in the
Philippines
b. Investments in equity issued by the Government of the Philippines
c. Investments in bonds issued by banks or banking institutions
d. A and C
8. Statement 1: Any official or employee of a banking institution is allowed to disclose
information concerning deposits to any person
Statement 2: Any person, government official, bureau or office cannot examine,
inquire or look any bonds issued by the government only
a. Only Statement 1 is true
 b. Only Statement 2 is false
c. Both statements are true
d. Both statements are false
9. The following are the exceptions in deposits covered under Bank Secrecy Law,
except:
a. With written permission of the depositor
b. In cases of impeachment
c. Upon order of a competent court in cases of bribery or dereliction of duty of
public officials
d. All are exceptions
10. Unclaimed balances include credits or deposits of money, bullion, security or other
evidence of indebtedness of any kind, and interest thereon with banks, buildings and
loan associations, and trust corporations, in favor of any person known to be dead or
who has not made further deposits or withdrawals during the preceding 15 years.
a. True
b. False
11. Which of the following information is required in a sworn statement?
a. The names and last known place of residence
b. The amount and the date of the outstanding unclaimed balance
c. The interest due on such unclaimed balance
d. All of the above
12. A notice to the depositor will be given at his last known place of residence or post
office address
a. True
b. False
13. Statement I: Foreign exchange corporations are not included in the covered
institutions under the Anti-Money Laundering Act of 2001.
Statement II: It is considered a suspicious transaction if the transaction is in any way
related to an unlawful activity or offense under this Act that is about to be, is being or
has been committed.
a. Only statement I is true.
 b. Only Statement I is false.
c. Both statements are true.
d. Both statements are false.
14. A transaction in cash or other equivalent monetary instrument will be considered as
a covered transaction under RA 9160 if it involves
a. amount in excess of eight hundred thousand pesos (P800,000.00) within two
(2) banking days
b. amount in excess of Five hundred thousand pesos (P500,000.00) within two
(2) banking days
c. amount in excess of eight hundred thousand pesos (P800,000.00) within one
(1) banking day
d. amount in excess of five hundred thousand pesos (P500,000.00) within one
(1) banking day
15. The following are considered as unlawful activities:
I. Kidnapping for ransom
II. Robbery in an uninhabited house or public building or edifice
devoted to worship
III. Piracy on the high seas
IV. Importation of prohibited drugs
a. I, II, III
b. I, III, IV
c. II, III, IV
d. All are unlawful activities.
16. All of the following are the functions of Anti-Money Laundering Council except;
a. to require and receive covered or suspicious transaction reports from covered
institutions
b. to apply before the Sandiganbayan, ex parte, for the freezing of any monetary
instrument or property alleged to be the proceeds of any unlawful activity as
defined in Section 3
c. to impose administrative sanctions for the violation of laws, rules, regulations
and orders and resolutions issued pursuant thereto
 d. to develop educational programs on the pernicious effects of money
laundering, the methods and techniques used in money laundering, the viable
means of preventing money laundering and the effective ways of prosecuting
and punishing offenders
17. All of the following are requirements to become the head of the Secretariat except;
a. appointed by the Council for a term of five (5) years
b. member of the Philippine Bar
c. at least forty (40) years of age
d. good moral character, unquestionable integrity and known probity
18. Generally, all cases of money laundering cases are for;
a. Sandiganbayan
b. Supreme Court
c. Regional Trial Court
d. Court of Appeals
19. Statement 1: AMLC may inquire into or examine any particular deposit of investment
in case of possible money laundering offense.
Statement 2: BSP may inquire into or examine any particular deposit of investment
in case of possible money laundering offense.
a. Statement 1 is false
b. Statement 2 is false
c. Both are true
d. Both are false
20. When reporting covered or suspicious transactions, employees or institutions are
prohibited from communicating any contents or information to any person. In case of
violation, concerned officer or employee shall be _____________.
a. Criminally liable
b. Financially liable
c. Excommunicated
d. Imprisoned for at least 2 years
21. Statement I: The Philippines shall negotiate for the inclusion of money laundering
offenses as herein defined among extraditable offenses in all future treaties.
 Statement II: No case for money laundering may be filed against and no assets shall
be frozen, attached or forfeited to the prejudice of a candidate for an electoral office
during an election period.
a. Both are false
b. Statement I is true, Statement II is false
c. Both are true
d. Statement I is false, Statement II is true
22. Statement I: The AMLC may execute a request from a foreign State for assistance in
the investigation or prosecution of money laundering offense.
Statement II: The AMLC may also comply with any request for assistance where the
action sought by the request contravenes any provision of the Constitution.
a. Both are false
b. Statement I is true, Statement II is false
c. Both are true
d. Statement I is false, Statement II is true
23. RA 9160 shall not be used for:
a. Political persecution
b. Harassment
c. As an instrument to hamper competition in trade and commerce
d. All of the above
24. Initial appropriation provided to AMLC.
a. P15,000,000
b. P20,000,000
c. P25,000,000
d. P35,000,000
25. The Congressional Oversight Committee shall be composed of 7 members from the
Senate and 7 members from the Upper House of Congress.
a. True
b. False
26. The members of Congressional Oversight Committee from Senate shall be
appointed by the President of the Philippines.
a. True
b. False

BSA 3-1 Group 5

Andoy, Rizza Mae Q.

Cabuyao, Stewart D.

Dela Cruz, Paul Vincent L.

Gamo, Krishia Hanna R.

Molina, Dan Lloyd M.

Pascual, Shiena Rae T.

Pevidal, Elyssa Marie P.

Sales, Katherine Shaey M.

Siarot, Erica G.
 PDIC Law
Multiple Choice Questions

1. Which of the following statement is true regarding the effects of the placement of
a bank under liquidation?

a. The powers, voting rights, functions and duties, as well as the allowances,
remuneration and perquisites of the directors, officers, and stockholders of a
closed bank are not terminated upon its closure.
b. Payment of separation pay or benefits provided for by the law shall be made
from the available assets of the bank after payment of claims in accordance
with the Rules on Concurrence and Preference of Credits under the Civil Code
or other laws.
c. From the time of closure, the closed bank shall not be liable for the payment of
penalties and surcharges arising from the late payment or nonpayment of real
property tax, capital gains tax, transfer tax and similar charges.
d. The receiver cannot impose charges and fees for services rendered after bank
closure.

2. Who shall have the power to examine and investigate all claims for insured
deposits?

a. Examiner
b. Claim agent
c. Personnel of the bank
d. Directors

3. Upon designation of the ______as the receiver, it shall serve a ________ to the
highest- ranking officer of the bank present in the premises, or in the absence of
such officer, the notice of closure will be posted in the bank premises or its main
entrance.

a. Department of Finance; notice of cancellation

b. Bangko Sentral ng Pilipinas; notice of closure
c. Bureau of Treasury; notice of cancellation
d. Philippine Deposit Insurance Corporation; notice of closure

4. Persons or entities with claims against the assets of the closed banks shall file
their claims with the receiver within ____ from date of publication of the notice of
closure.

a. 90 days
b. 60 days
c. 6 months
d. 4 months
5. Which of the following is a power of the corporate body?

a. To adopt and use a corporate seal

b. To make contracts
c. To act as receiver
d. All of the above

6. Statement 1: Philippine Deposit Insurance Corporation (PDIC) is authorized to

borrow from Bangko Sentral ng Pilipinas (BSP) and the BSP is authorized to lend
to the PDIC on such terms as may be agreed upon by the both parties.
Statement 2: PDIC is also authorized to borrow money from any bank.

a. Only statement 1 is true

b. Only statement 2 is true
c. Both statements are true
d. Both statements are false

7. Insured banks shall make to the Corporation reports of condition. Every such
banks which fails to make any such report shall be subject to a penalty of not more
than _____ for each day of such failure.

a. Php 5,000
b. Php 10,000
c. Php 15,000
d. Php 20,000

8. The Corporation as a receiver is empowered to do the following except;

a. Pay accrued utilities, rentals and salaries of personnel of the closed bank for a
period not exceeding six (6) months, from available funds of the closed bank.
b. Charge reasonable fees for the liquidation of the bank from the assets of the
bank; provided, that the payment of these fees, including any unpaid advances
under the immediately preceding paragraph, shall be subject to approval by the
liquidation court.
c. Convert the assets of the closed bank to cash or other forms of liquid assets,
as far as practicable.
d. Appoint or hire persons or entities of recognized competence in forensic and
fraud investigations.

9. When was Philippine Deposit Insurance Corporation established?

a. June 23,1962
b. June 22,1963
c. July 22,1963
d. July 21,1962
10. The receiver shall have the following authority in the management/conversion of
assets:

I. Conduct physical or ocular inspection to determine their existence and

present condition.
II. Dispose properties trough bidding, negotiated sale, lease with option to
purchase, and other mode reasonably determined by the receiver based on
cost-benefit considerations.
III. Determine disposal price according to generally accepted valuation
principles, standards, and practices.
IV. Engage third parties to assist in the liquidation, manage or dispose the
assets, or handle cases filed by/against the bank.

a. II & III only

b. I, II, III & IV
c. I & IV only
d. I only

11. Which of the following may issue a restraining order or injunction against the
PDIC?

a. The Court of Appeals only

b. The Supreme Court only
c. Both the Court of Appeals and the Supreme Court
d. Neither the Court of appeals nor the Supreme Court

12. A bank placed under liquidation by the Monetary Board

a. Insured bank
b. Banking Institution
c. Closed bank
d. Mortgage bank

13. In case of reappointment, and of those first appointed, how many years shall the
first two appointees serve?

a. 1 year
b. 3 years
c. 5 years
d. 6 years

14. The Corporation shall not pay deposit insurance for which of the following
accounts or transactions?

a. Trust accounts
 b. Fictitious accounts
c. Transactions as defined under RA 9106
d. A and B only
e. All of the above

15. The corporate body have the power to

a. To determine qualified interested acquirers or investors for any of the modes

of resolution or liquidation of banks
b. To determine the appropriate resolution method and to implement the same
for a bank subject of resolution
c. To determine appropriate mode of liquidation of a closed bank and to
implement the same
d. All of the above

16. In case of the bank’s entry into resolution, the Corporation may, except:

a. Engage an independent appraiser or auditor to determine the valuation of the

bank
b. Conduct a bidding to determine the acquirer of the bank
c. Determine a resolution package for the bank
d. Authorize pre-qualified acquirers or investors to conduct due diligence on the
bank

17. The receiver is authorized to adopt and implement, without need of consent of the
following, except;

a. Stockholders
b. Board of Directors
c. Creditors or depositors
d. Monetary Board

18. I. The President of the Corporation is shortlisted by the Governance Commission

for Government-Owned or Controlled Corporations and appointed by the President
of the said Commission.
II. Whenever the Chairman of the Board is unable to attend a meeting of the
Board, or in the event of vacancy in office of the Secretary of Finance, and in the
absence of Vice Chairman, the Governor of the BSP shall act as the President.

a. Both statements are true.

b. Both statements are false.
c. Only statement I is true.
d. Only statement II is true.
19. This refers to a special proceeding for the liquidation of a closed bank
which includes declaration of the concomitant right of creditors and the order of
payment of their valid claims in the disposition of assets.

a. Petition for assistance in the dissolution of a closed bank

b. Petition for assistance in the resolution of a closed bank
c. Petition for assistance in the liquidation of a closed bank
d. Petition for assistance in the closure of a closed bank

20. The PDIC shall annually make a report of its operations to the Congress as soon
as practicable after the ___________.

a. 30th day of June each year

b. 1st day of July each year
c. 1st day of January each year
d. None of the above

21. Which of these is/are the power/s and duties of the President of the Corporation?

a. To execute and administer the policies and measures approved by the Board
b. To represent the Corporation, either personally or through counsel, including
private counsel, as may be authorized by the PDIC Board, in any legal
proceeding or action
c. To authorize, with his signature, upon prior authority of the Board, contracts
entered into by the Corporation, notes and securities issued by the
Corporation, and annual reports, balance sheets, profit and loss statements,
correspondence and other documents of the Corporation
d. All of the above

22. Number of days given for the bank to correct its practices

a. 30 days
b. 45 days
c. 60 days
d. 90 days

23. According to RA 3591, Sec. 10, personnel of the Corporation are hereby prohibited
from except:

a. Receiving any gift of thing of value from any officer, director or employee of any
bank
b. Being an officer, director, or employee of any bank or banking institution
c. Being related directly or indirectly to any officer, director, or employee of any
bank
d. Revealing information relating to the condition or business
 24. The penalty of imprisonment of not less than six (6) years but not more than twelve
(12) years or a fine of not less than Fifty thousand pesos (P50,000.00) but not
more than Ten million pesos (P10,000,000.00), or both, at the discretion of the
court, shall be imposed upon the following except:

a. Any director, officer, employee or agent of a bank for splitting of deposits or

creation of fictitious or fraudulent loans or deposit accounts.
b. Any depositor who files a fictitious and/or fraudulent claim for deposit
insurance.
c. Any director, officer, employee or agent of a bank for fraudulent disposal,
transfer or concealment of any asset, property or liability of the closed bank.
d. Any law enforcement officer or local government official who refuses or fails to
assist the receiver in the service of the notice of closure.

25. President of the Corporation shall be:

a. Vice Chairman of the BOD

b. Chief Executive Officer
c. Both of the above
d. None of the above

BSA 3-1 GROUP 5

Andoy, Rizza Mae Q.
Cabuyao, Stewart D.
Dela Cruz, Paul Vincent L.
Gamo, Krishia Hanna R.
Molina, Dan Lloyd M.
Pascual, Shiena Rae T.
Pevidal, Elyssa Marie P.
Sales, Katherine Shaey M.
Siarot, Erica G.
 Polytechnic University of the Philippines
Sta. Mesa Manila
College of Accountancy and Finance
LAW 20033 – Regulatory Framework and Legal Issues in
Business

Republic Act 1405 An Act Prohibiting Disclosure of or Inquiry Into,

Deposits with any Banking Institution and Providing Penalty Therefore

I. MULTIPLE CHOICE QUESTIONS. Select the best answer

1. Foreign currency deposits are absolutely confidential and cannot be
disclosed.
a. General Rule
b. Absolute Rule
c. If ordered by court
d. With Exception

2. The following instances do not violate the Bank Secrecy Law, choose the
best answer.
a. Submission of report, and turn-over to, the court officer or executing
sheriff of garnished amounts
b. Turnover to liquidator of bank, account amounts to satisfy writ of
garnishment issued to collect delinquent taxes
c. Both A and B
d. None of the above

3. Which of the following is/are the criminal liability for violating the Republic
Act No. 1405 (Bank Secrecy Law)?
a. Imprisonment of not more than five (5) years
b. Fine of at least twenty thousand pesos (P20,000)
c. Either A or B
d. Neither A or B

4. The following are the exceptions to the Bank Secrecy Law, except:
a. Written permission or consent in writing by the depositor
b. In cases of impeachment
c. Upon order of the court in cases where the money deposited or
invested is the subject matter of the litigation
 d. Upon order of the court in cases of bribery or dereliction of duty of
bank employees

5. If an employee of the Land Bank of the Philippines disclosed information

concerning the deposits of Juan de la Cruz to another person without
Juan’s permission, will the employee be liable for his/her actions?
a. No, because the employee is allowed to disclose information of the
bank’s depositors.
b. Yes, the employee is already in violation of the Act and is
subject to an imprisonment of more than five years.
c. Yes, the employee is already in violation of the Act and is subject to
a fine of not more than twenty thousand pesos.
d. No, because the employee is allowed to disclose information of the
depositor if the depositor is a debtor of the person to whom the
information is disclosed.

6. The Bank Secrecy Law (RA 1405) prohibits disclosing any information
about deposit records of an individual without court order except -
a. In an examination to determine gross estate of a decedent.
b. In an investigation for violation of Anti-Graft and Corrupt Practices.
c. In an investigation by the Ombudsman.
d. In an impeachment proceeding.

7. The following are the exceptions to the Rule on Secrecy of Bank Deposits
except.
a. Upon written consent of the depositor
b. Impeachment cases
c. Upon order of competent court in cases of bribery or dereliction of
duty of public officials or where the money deposited or invested is
the subject of litigation
d. None of the above

8. What is the purpose of secrecy of bank deposits?

a. To encourage deposit in banking institutions
b. To discourage private hoarding so that banks may lend such funds
and assist in the economic development of the country.
c. Both a and b.
d. Neither a nor b
 9. Mike’s parents wanted to know the deposit of their son. Can they inquire
from the bank considering they are parents of the depositor?
a. Yes, family affiliates can inquire anytime from the bank of their
family member.
b. No, any person is not allowed to examine, inquire or even look at
someone's deposit without any exception.
c. Yes, by written permission of Mike, the depositor
d. No, because they are in the same bloodline.

10. Exception to Foreign Currency Deposit Act do not include

a. Written consent of depositor
b. Upon order of the competent court
c. Examination by the BPS, PDIC, PCGG and COA
d. Under Section 27 and 28 of the Human Security Act

II. TRUE OR FALSE QUESTIONS. Write TRUE if you think a statement is

True and FALSE if you think the statement is FALSE.

1. Deposits are money or funds placed with a bank that can be withdrawn on
depositor’s order of demand.
2. There is a violation of bank secrecy law in garnishment since the amount
of deposit is disclosed.
3. Foreign currency deposits are also governed by Republic Act No. 1405
(Bank Secrecy Law).
4. The Bank Secrecy Law protects all deposits of whatever nature in banks
or banking institutions in the Philippines as well as investments in
government bonds.
5. Investments in Government Bonds refer to investments in bonds issued by
the Government of the Philippines and publicly listed companies.
6. The purpose of Secrecy in bank deposits is to discourage private hoarding
so that banks may lend such funds and assist in the economic
development of the country.
7. It shall be lawful for any official or employee to disclose any information
about deposits.
 8. To encourage private hoarding so that the same may be properly utilized
by banks in authorized loans to assist in the economic development of the
country.
9. Deposits may only be disclosed if a bank account is being investigated in
court.
10. Upon order of the competent court in cases subject to litigation, money
deposited is not the subject matter in order to constitute an exception
related to the Secrecy of Bank Deposits.

ANSWER KEY

Part 1 MULTIPLE CHOICE QUESTIONS

1. D 5. A
2. A 6. D
3. A 7. C
4. D 8. C
5. C 9. B

Part 2 TRUE OR FALSE QUESTIONS

1. TRUE
2. FALSE
3. FALSE
4. TRUE
5. FALSE
6. TRUE
7. FALSE
8. FALSE
9. TRUE
10. FALSE
GROUP 3 MEMBERS

ABORDO, AIZEL MIN A.

AVERILLA, KATRINA MAE A.

BAYRON, MIKE E.

CAYABYAB, DWYER SYDNEY

FRANCIA, MERYL KAYE A.

MADUCDOC, PHILLIP HENRY G.

REYEL, RAYMART C.

SANTIANO, JOHN CARLO B.

VOCAL, YSSA CLARIN M

 Polytechnic University of the Philippines
Sta. Mesa Manila
College of Accountancy and Finance
LAW 20033 – Regulatory Framework and Legal Issues in
Business

Republic Act 3591 An Act Establishing the Philippine Deposit Insurance

Corporation, Defining its Powers and Duties and for Other Purposes

I. MULTIPLE CHOICE QUESTIONS. Select the best answer

1. The following are the functions of PDIC except:
a. Deposit Insurer
b. Co-regulator
c. Receiver and Liquidator of closed banks
d. Co-depositor

2. The following are the requisites to those not required to file claims in case
of bank closure ordered by the Monetary Board. Which of the following is
not part of the requisites?
a. Valid deposit balance of less than Php 100,000
b. No outstanding obligation with the closed bank
c. Complete and updated address
d. Depositor whose account are maintained in the name of business

3. The following are not covered by PDIC deposit insurance except:

I. Deposit accounts which are unfunded, fictitious, or fraudulent
II. Investment products
III. Deposit products emanating from unsafe and unsound banking
practices
IV. Deposit that are determined to be proceeds of an unlawful activity

a. I only
b. III only
c. II and III
d. None of the above

4. What specific risks to a bank does PDIC cover?

a. Bank closure ordered by the Monetary Board
b. Bank closure due to theft and fire
c. Closure by reason of revolution or civil war
 d. All of the above

5. Statement I. If the closed bank is not rehabilitated or taken over by

another bank, an amount in excess of the P500,000 coverage can still be
claimed upon the final liquidation of the remaining assets of the closed
bank.
Statement II. All deposit accounts by a depositor in a closed bank
maintained in the same right and capacity shall be added together.
a. Only statement I is not false.
b. Only statement II is true.
c. Both statements are not true.
d. Both statements are not false.

6. PDIC has the authority to do the following except?

a. Help depositors have quicker access to their insured deposits
should their bank close
b. mete out stiffer sanctions and penalties against those who engage
in unsafe and unsound banking practices
c. Hasten the liquidation process for open banks
d. Resolve problem banks while still open

7. Liability covers the amount due to any depositor for deposits in an insured
bank as of the date of closure, but not to exceed _____________.
a. P 200,000
b. P 400,000
c. P 500,000
d. P 1,000,000

8. ______________ insure the deposits of all banks which are entitled to the
benefits of
insurance.
a. RA 9576
b. RA 1405
c. RA 3936
d. RA 3591

9. The permanent insurance fund shall be?

a. P 2.5 Billion
b. P 3 Billion
c. P 4 Billion
 d. P 1.5 Billion

10. Which is correct in modes of payment of the Corporation

a. By cash
b. By making available to each depositor a transferred deposit in
another insured bank in an amount equal to insured deposit of such
depositor
c. Either a or b
d. Neither a nor b

II. TRUE OR FALSE QUESTIONS. Write TRUE if you think a statement is

True and FALSE if you think the statement is FALSE.

1. The deposit term “Juan by Pedro,” the depositor is Pedro.

2. PDIC may act as Deposit Insurer, in which it can manage, control, and
administer the affairs of the closed bank.
3. The Bangko Sentral ng Pilipinas is a government instrumentality created
in 1963 by virtue of Republic Act 3591 to insure the deposits of all banks
which are entitled to the benefits of insurance.
4. Under Joint Accounts, the Maximum Deposit Insurance Coverage (MDIC)
of P500,000 shall always be divided equally between or among co-owners.
5. The PDIC is an attached agency of the Department of Finance.
6. The commencement of liability is when an insured bank is closed by the
Monetary Board pursuant to Sec. 30 of RA 7653.
7. PDIC is a private owned corporate body to insure the deposits of all banks
which are entitled to the benefit of insurance.
8. The Board of Directors consists of 1 chairman, 1 BSP Governor, 1 PDIC
President and 2 from public sectors.
9. PDIC shall remit dividends to the national government only if the target
Deposit Insurance Fund (DIF) level for the applicable year has been
reached.
10. Period for the Corporation to settle a claim is 180 days from the date of
filing of the claim.
 ANSWER KEY

Part 1 MULTIPLE CHOICE QUESTIONS

1. D 6. C
2. D 7. C
3. D 8. D
4. A 9. B
5. D 10. C

Part 2 TRUE OR FALSE QUESTIONS

1. FALSE
2. FALSE
3. FALSE
4. FALSE
5. TRUE
6. TRUE
7. FALSE
8. FALSE
9. TRUE
10. TRUE
GROUP 3 MEMBERS

ABORDO, AIZEL MIN A.

AVERILLA, KATRINA MAE A.

BAYRON, MIKE E.

CAYABYAB, DWYER SYDNEY

FRANCIA, MERYL KAYE A.

MADUCDOC, PHILLIP HENRY G.

REYEL, RAYMART C.

SANTIANO, JOHN CARLO B.

VOCAL, YSSA CLARIN M

 Polytechnic University of the Philippines
Sta. Mesa Manila
College of Accountancy and Finance
LAW 20033 – Regulatory Framework and Legal Issues in
Business

Republic Act 3765 AN ACT TO REQUIRE THE DISCLOSURE OF FINANCE

CHARGES IN CONNECTION WITH EXTENSIONS OF CREDIT

I. MULTIPLE CHOICE QUESTIONS. Select the best answer

1. Who are covered under the Truth in Lending Act?
a. Creditor
b. PDIC
c. Board of Directors
d. Co-depositor

2. All of the following are the information required to be furnished by the

debtor, except one.
a. the cash price or received price of the property or service to be
acquired
b. the amounts, if any, to be credited as down payment and/or trade-in
c. the total amount to be financed;
d. the finance charge expressed in terms of pesos and centavos

3. The following are the penalties in violation of Truth in Lending Act, except:
a. P100 or in amount equal to twice the finance charged required by
creditor, whichever is higher
b. Reasonable attorney’s fees or court costs
c. Imprisonment of more than six (6) months but less than two (2) years
d. Fine of not less than P1,000 or more than P5,000

4. Statement I. Any creditor shall furnish to each person to whom credit is

extended after the consummation of the transaction.
Statement II. Section 3 of RA 3765 defined a creditor as any person
engaged or not engaged in the business of extending credit who requires
as an incident to the extension of credit, the payment of a finance charge.
a. Only statement I is not true
b. Only statement II is true
c. Both statements are not true
 d. Both statements are not false

5. Which of the following is recognized as a person under R.A 3765?

a. Philippine Government
b. Juan de la Cruz
c. San Miguel Corporation
d. All of the above

6. Light Corporation bought ten (10) units of Honda Civic from Dark
Corporation. Mighty Bank granted a loan to Light Corporation which
executed a financing agreement which provided for the principal amount,
the installment payments, the interest rates and the due dates. On due
dates of the installment payments, Light Corporation was asked to pay for
some handling charges and other fees which were not mentioned in the
Financing Agreement. Can Light Corporation refuse to pay the same?
a. No, because handling charges and other fees are usual in certain
banking transactions.
b. Yes, because Mighty Bank is required to provide Light Corporation
not only the amount of the monthly installments but also the details
of the finance charges as required by the Truth in Lending Act.
c. No, because the Finance Agreement is a valid document to establish
the existence of the obligation.
d. Yes, because legally, finance charges are never allowed in any
banking transaction.

7. The_______ shall prescribe such rules and regulations as may be necessary

or proper in carrying out the provisions of this Act.
a. Board
b. Court
c. Senate
d. Congress

8. _______ means any person engaged in the business of extending credit

(including any person who as a regular business practice make loans or sells
or rents property or services on a time, credit, or installment basis, either as
principal or as agent) who requires as an incident to the extension of credit,
the payment of a finance charge.
a. Debtor
b. Credit
c. Person
 d. Creditor

9. What transactions are not covered by this Act?

a. Those which do not involve the payment of any finance charges by
the debtor
b. Where the debtor is the one specifying a definite and fixed set of
credit terms such as bank deposits, insurance contracts, sale of
bonds, etc.
c. Both A and B
d. Neither A nor B

10. Which is not included in disclosure requirements of the act?

a. Cash Price
b. Transaction Cost
c. Finance Cost
d. Dismantling Cost

II. TRUE OR FALSE QUESTIONS. Write TRUE if you think a statement is

True and FALSE if you think the statement is FALSE.

1. Any creditor who violates the law is liable in the amount of P100 or in an
amount equal to the finance charged required by such creditor in connection
with such transaction, whichever is the greater, except that such liability
shall not exceed P2,000 on any credit transaction.
2. A finance charge excludes interest, fees, service charges, discounts, and
such other charges incident to the extension of credit as may be prescribed
by the Monetary Board of the Bangko Sentral ng Pilipinas through
regulations.
3. The declared policy behind RA 3765 is to protect the people from lack of
awareness of the true cost of credit by assuring full disclosure of such cost,
with a view of preventing the uniform use of credit to the detriment of the
national economy.
4. No punishment or penalty under RA 3765 shall apply to the Philippine
Government or any agency or any political subdivision thereof.
5. The declared policy behind the law is to protect its citizens from a lack of
awareness of the true cost of credit to the user by assuring a full disclosure
of such cost with a view of preventing the uninformed use of credit to the
detriment of the national economy.
6. The Truth in Lending Act was approved on June 23, 1963.
 7. REPUBLIC ACT No. 3765 shall be known as the "Truth in Lending Act."
8. Any person who willfully violates any provision of this Act or any regulation
issued thereunder shall be fined by not less than P10,000 or more than
P50,000 or imprisonment for not less than 6 years, nor more than ten year
or both.
9. The Board shall prescribe such rules and regulations as may be necessary
or proper in carrying out the provisions of this Act.
10. Employee is not required to read/ explain the contract to the debtor.

ANSWER KEY

Part 1 MULTIPLE CHOICE QUESTIONS

1. A 6. B
2. A 7. A
3. C 8. D
4. C 9. C
5. D 10. D

Part 2 TRUE OR FALSE QUESTIONS

1. FALSE
2. FALSE
3. TRUE
4. TRUE
5. TRUE
6. FALSE
7. TRUE
8. FALSE
9. TRUE
10. FALSE
GROUP 3 MEMBERS

ABORDO, AIZEL MIN A.

AVERILLA, KATRINA MAE A.

BAYRON, MIKE E.

CAYABYAB, DWYER SYDNEY

FRANCIA, MERYL KAYE A.

MADUCDOC, PHILLIP HENRY G.

REYEL, RAYMART C.

SANTIANO, JOHN CARLO B.

VOCAL, YSSA CLARIN M.

 Polytechnic University of the Philippines
Sta. Mesa Manila
College of Accountancy and Finance
LAW 20033 – Regulatory Framework and Legal Issues in
Business

Republic Act 8293 AN ACT PRESCRIBING THE INTELLECTUAL PROPERTY

CODE AND ESTABLISHING THE INTELLECTUAL PROPERTY OFFICE,
PROVIDING FOR ITS POWERS AND FUNCTIONS, AND FOR OTHER
PURPOSES

I. MULTIPLE CHOICE QUESTIONS. Select the best answer

1. Intellectual Property Rights consists of the following except:

a. Copyright

b. Trademark

c. Patents

d. Goods or services

2. Which of the following is not legally protectable under trademarks for

Intellectual Property?

a. Generic term

b. Descriptive term

c. Suggestive term

d. Both B and C

3. Which of the following is not qualifications of the Director General and the
Deputies Director General?

a. need not be natural born citizens of the Philippines

b. at least thirty-five (35) years of age on the day of their appointment,

c. holders of a college degree, and of proven competence, integrity,

probity, and independence
 d. the Director General and at least one (1) Deputy Director General shall
be members of the Philippine Bar who have engaged in the practice of
law for at least ten (10) years

4. Which of following are not function of Bureau of Patents?

a. Search and examination of patent applications and creation of patents

b. Registration of utility models, industrial designs, and integrated circuits

c. Conduct studies and researches in the field of patents in order to assist

the Director General in formulating policies on the administration and
examination of patents.

d. All of the above

5. Which of the following statements is true regarding copyright?

a. Copyright shall consist of the exclusive right for a period of 50 years from
the date the application is filed.
b. Copyright shall consist of the exclusive right during the lifetime of the
author and for a period of 50 years after his death, without having the
need to register the work.
c. Copyright shall consist of the exclusive right for a period of 10 years from
the date the application is filed and is renewable every 10 years.
d. To get a copyright, the author can get an injunction to prevent the
disclosure of creative works and file a case for damages against the
person who made the unauthorized disclosure of the works.

6. It refers to the transfer, assignment or licensing of all forms of intellectual

property rights, including licensing of computer software except computer
software developed for the mass market.

a. Computer software transfer

b. Technology transfer arrangements
c. Computer technology arrangements
d. Technology rights transfer
7. Choose from among the list the functions of Intellectual Property Office.
Select the best answer.

I. Examine applications for grant of letters patent for inventions and register
utility models and industrial designs

II. Examine applications for the registration of marks, geographic indication,

integrated circuits

III. Register technology transfer arrangements and settle disputes involving

technology transfer payments

IV. Promote the use of patent information as a tool for technology development

V. Publish twice a month in its own publication the patents, marks, utility models
and industrial designs, issued and approved, and the technology transfer
arrangements registered

VI. Administratively adjudicate contested proceedings affecting intellectual

property rights

VII. Formulate and implement plans and policies, without the coordination with
other government agencies, to strengthen the protection of intellectual
property rights in the country.

a. I,II,III,IV,V,VI & VII

b. I,III,V & VII

c. I,II,III,IV & VI

d. I,II,III,IV,V & VI
8. Select from the following the correct organizational structure and division of
bureau of Intellectual Property Office.

a. A Director General assisted by a Deputy Director General; and six (6)

bureaus

b. A Director General assisted by two (2) Deputies Director General; and

six (6) bureaus

c. Two (2) Director Generals assisted by four (4) Deputies Director General;
and four (5) bureaus

d. Three (3) Director Generals assisted by six (6) Deputies Director General;
and five (5) bureaus

9. One of its functions is to search and examine the applications for the
registration of marks, geographic indications and other marks of ownership
and the issuance of the certificates of registration.

a. Bureau of Legal Affairs

b. Bureau of Patents
c. Administrative, Financial and Personnel Services Bureau
d. Bureau of Trademarks

10. This Bureau exercises original jurisdiction in administrative complaints for

violations of laws involving intellectual property rights

a. Administrative, Financial and Personnel Services Bureau

b. Documentation, Information and Technology Transfer Bureau
c. Bureau of Patents
d. Bureau of Legal Affairs
II. TRUE OR FALSE QUESTIONS. Write TRUE if you think a statement is
True and FALSE if you think the statement is FALSE.

1. Prior approval or conditions shall be required for the use of any purpose of
statutes, rules and regulations, and speeches, lectures, sermons,
addresses, and dissertations, pronounced, read or rendered in courts of
justice, before administrative agencies, in deliberative assemblies and in
meetings of public character.
2. The penalties for infringement for second offenders are a fine of P150,000
to P500,000 and/or imprisonment of 3 to 6 years.
3. It is the policy of the State to streamline fiscal arrangements of registering
patents, trademarks and copyright, to liberalize the registration on the
transfer of technology, and to enhance the enforcement of intellectual
property rights in the Philippines.
4. A registered owner of a mark has the exclusive right to use the mark and
prevent others from using it or similar marks in identical or related goods
and services for a period of 20 years renewable every 20 years.
5. The person who commissions the work shall own the patent, unless
otherwise provided in the contract.
6. Technology transfer arrangement is a licensing contract between the
licensor and licensee.
7. The Intellectual Property Office administers and implements the State
policies declared in this Act.
8. RA 8293 is also known as Intellectual Property Code of the Philippines.
9. The Director General shall be authorized to use and disburse directly any
fees and charges collected for its operations and for the improvement of
services to public
10. The Director General, Deputies Director General, Directors and Assistant
Directors shall be appointed by the Chief Justice.
 ANSWER KEY

Part 1 MULTIPLE CHOICE QUESTIONS

1. D 6. B
2. A 7. C
3. A 8. B
4. A 9. D
5. B 10. D

Part 2 TRUE OR FALSE QUESTIONS

1. FALSE 6. TRUE
2. TRUE 7. TRUE
3. FALSE 8. TRUE
4. FALSE 9. TRUE
5. TRUE 10. FALSE

GROUP 3 MEMBERS

ABORDO, AIZEL MIN A.

AVERILLA, KATRINA MAE A.

BAYRON, MIKE E.

CAYABYAB, DWYER SYDNEY

FRANCIA, MERYL KAYE A.

MADUCDOC, PHILLIP HENRY G.

REYEL, RAYMART C.

SANTIANO, JOHN CARLO B.

VOCAL, YSSA CLARIN M.

 Polytechnic University of the Philippines
Sta. Mesa Manila
College of Accountancy and Finance
LAW 20033 – Regulatory Framework and Legal Issues in
Business

Republic Act 9160 AN ACT DEFINING THE CRIME OF MONEY LAUNDERING,

PROVIDING PENALTIES THEREFOR AND FOR OTHER PURPOSES

I. MULTIPLE CHOICE QUESTIONS. Select the best answer

1. Which stage in money laundering is where the launderer inserts dirty money
to legitimate financial institutions?

a. Placement

b. Layering

c. Integration

d. None of the above

2. The following are the covered entities under anti-money laundering, which is
not?

a. All entities supervised by BSP

b. Entities supervised by SEC

c. Entities supervised by Insurance Commission

d. None of the above

3. Freezing of monetary instruments and property upon order of Court of

Appeals shall be effective immediately for

a. 15 days unless extended by the court upon application by the AMLC

b. 20 days unless extended by the court upon application by the AMLC

c. 25 days unless extended by the court upon application by the AMLC

d. 30 days unless extended by the court upon application by the AMLC

4. Upon authority to inquire into bank deposits the court order is necessary
when the offense involved is

a. Kidnapping for ransom

b. Hijacking

c. Smuggling

d. Terrorism

5. All the members of the secretariat, as established by the AMLC, must have
served the following institutions for at least five (5) years, except for one.

a. Insurance Commission

b. Bangko Sentral ng Pilipinas

c. Securities and Exchange Commission

d. None of the above

6. In the record keeping of covered institutions, how many years do records

of closed accounts must be preserved and safely stored?

a. 5 years from the date the accounts are closed

b. 3 years from the date the accounts are closed

c. 1 year from the date the accounts are closed

d. None, because the records must be disposed of immediately.

7. Which of the following is a forfeiture provision under Section 12 of Republic

Act No. 9160?

a. Civil Forfeiture
b. Claim on Forfeited Assets
c. Payment in Lieu of Forfeiture
d. All of the above

8. Which of the following is not an instance where the order of forfeiture of the
monetary instrument or property subject of a money laundering offense
defined under Section 4 cannot be enforced.

a. It has been concealed, removed, converted or otherwise transferred to

prevent the same from being found or to avoid forfeiture thereof
 b. It is located inside the Philippines
c. Any particular monetary instrument or property cannot, with due
diligence, be located, or it has been substantially altered, destroyed,
diminished in value or otherwise rendered worthless by any act or omission,
directly or indirectly, attributable to the offender.
d. It has been commingled with other monetary instruments or property
belonging to either the offender himself or a third person or entity, thereby
rendering the same difficult to identify or be segregated for purposes of
forfeiture

9. The following are the policy for the enactment of AMLA, except one:

a. To protect and preserve the integrity and confidentiality of bank accounts.

b. To initiate investigations of covered transactions, money laundering
activities and other violations of this Act.
c. To ensure that the Philippines shall not be used as a money laundering
site for the proceeds of any unlawful activity
d. To extend cooperation in transitional investigation and prosecution of
persons involved in money laundering activities wherever committed.

10. Statement 1: The regional trial courts shall have jurisdiction to try all cases
on money laundering.

Statement 2: If the offender is a corporation, association, partnership or any

juridical person, the penalty shall be imposed upon the responsible officers,
as the case may be, who participated in the commission of the crime or who
shall have knowingly permitted or failed to prevent its commission.

a. Only statement 1 is true

b. Only statement 2 is true
c. Both statements are true
d. Both statements are false
II. TRUE OR FALSE QUESTIONS. Write TRUE if you think a statement is
True and FALSE if you think the statement is FALSE.

1. Republic Act No. 9170 is called the Anti-Money Laundering Act of 2001.
2. Monetary instruments may refer to coins or currency of legal tender of the
Philippines, or of any other country, drafts, checks and notes, etc.
3. The Anti-Money Laundering Council is composed of the Governor of the
Bangko Sentral ng Pilipinas as chairman, the Commissioner of the
Insurance Commission and the Chairman of the Securities and Exchange
Commission as members.
4. A breach in confidentiality may result in a punishment of imprisonment
ranging from three (3) to eight (8) years and a fine of not less than Five
hundred thousand Philippine pesos (Php500,000.00) but not more than
One million Philippine pesos (Php1,000,000.00).
5. A holding company includes any person who directly or indirectly controls
any unauthorized insurer.
6. Money laundering is a crime whereby the proceeds of lawful activity are
transacted.
7. An example of a suspicious transaction is when there is a simultaneous
transfer of funds to a group of customers’ accounts from a third party.
8. Proceeds refers to an amount derived or realized from a lawful activity.
9. The Sandiganbayan does not have the jurisdiction for money laundering
cases committed by public officers and private persons who are in
conspiracy with such public officers.
10. Supervising Authority refers to the appropriate supervisory of regulatory
agency, department or office supervising or regulating the covered
institutions.
 ANSWER KEY

Part 1 MULTIPLE CHOICE QUESTIONS

1. A 6. A
2. D 7. D
3. B 8. B
4. C 9. B
5. D 10. C

Part 2 TRUE OR FALSE QUESTIONS

1. FALSE 6. FALSE
2. TRUE 7. TRUE
3. TRUE 8. FALSE
4. TRUE 9. FALSE
5. FALSE 10. TRUE

GROUP 3 MEMBERS

ABORDO, AIZEL MIN A.

AVERILLA, KATRINA MAE A.

BAYRON, MIKE E.

CAYABYAB, DWYER SYDNEY

FRANCIA, MERYL KAYE A.

MADUCDOC, PHILLIP HENRY G.

REYEL, RAYMART C.

SANTIANO, JOHN CARLO B.

VOCAL, YSSA CLARIN M.

 ANTI-MONEY
LAUNDERING ACT
(RA 9160, AS AMENDED BY RA 9194)

CABRAL, Trisha Aleana C.

DIGNADICE, Pamela Reichelle B.
MERCADO, Lindsay P.
OCAMPO, Arriane Akia I.
ROCERO, Rubylyne M.
ROM, Ma. Jessa N.
SPRINGAEL, Merry Rose M.
VASALLO, Adrian N.
VERGARA, Rnell A.
Multiple Choice Questions
1. Should a transaction be determined to be both a covered transaction and a suspicious
transaction, the covered institution shall be required to report the same as a ______.
a. Covered transaction
b. Suspicious transaction
c. Both a suspicious and covered transaction
d. At the election of the covered institution
2. Statement I: Unlawful activity is a crime whereby the proceeds of an unlawful activity
are transacted; thereby making them appear to have originated from legitimate
sources.
Statement II: AMLA aims to protect and preserve the integrity and confidentiality of
bank accounts and to ensure that the Philippines shall not be used as a money
laundering site for the proceeds of any unlawful activity.
a. Only statement I is true
b. Only statement II is true
c. Both statements are true
d. Both statements are not true
3. All cases of money laundering shall be within the jurisdiction of _______.
a. Regional Trial Courts (RTC)
b. Court of Appeals (CA)
c. Sandiganbayan (SB)
d. Court of Tax Appeals (CTA)
4. Acts of money laundering committed by a public officers, and private persons in
conspiracy with such public officers shall be within the jurisdiction of _______.
a. Regional Trial Courts (RTC)
b. Court of Appeals (CA)
c. Sandiganbayan (SB)
d. Court of Tax Appeals (CTA)
5. It refers to a transaction in cash or other equivalent monetary instrument involving a
total amount in excess of P500,000 within one banking day.
a. Covered transactions
b. Suspicious transactions
c. Monetary transactions
d. E-commerce transaction
6. Statement I: Placement is the stage of money laundering where launderer inserts dirty
money into a legitimate financial institution.
Statement II: Integration Involves sending money through various financial
transactions to change its form and make it more difficult to follow.
a. Only statement I is true
b. Only statement II is true
c. Both statements are true
d. Both statements are false
7. The provision under RA 9160 (as amended) with regards to payment in lieu of
forfeiture is applicable to _______.
a. civil forfeiture
b. criminal forfeiture
c. both civil and criminal forfeiture
d. neither civil nor criminal forfeiture
8. Statement I: Imprisonment of six months to one year, or a fine of not less than
Php100,000.00 but not more than Php500,000.00, or both is a penalty for failure to
keep records.
Statement II: Imprisonment of seven to fourteen years; and a fine of not less than
Php3,000,000.00 but not more than twice the value of the monetary instrument or
property involved in the offense is the penalty for violation of Section 4(a) of RA 9160.
a. Only statement I is true
b. Only statement II is true
c. Both statements are true
d. Both statements are false
9. Where should the freeze order be filed?
a. Sandiganbayan
b. Ombudsman
c. Supreme Court
d. Court of Appeals
10. Statement I: If an offender in malicious reporting is a juridical person, the court may
not suspend or revoke its license.
Statement II: If an offender in malicious reporting is an Alien, in addition to the
penalties herein prescribed, be deported without further proceedings after serving the
penalties herein prescribed.
a. Only statement I is true
b. Only statement II is true
c. Both statements are true
d. Both statements are false
11. AMLC may conduct an examination of bank accounts without a court order in cases
involving ________.
a. Kidnapping for ransom
b. Drug Possession
c. Plunder
d. Robbery and Extortion
12. Statement I: Under AMLA, Theft without violence or intimidation is an unlawful activity.
Statement II: Any person may be charged with and convicted of both the offense of
money laundering and unlawful activity. The prosecution of any offense under AMLA
shall proceed dependently of any proceeding relating to the unlawful activity.
a. Only statement I is true
b. Only statement II is true
c. Both statements are true
d. Both statements are false
13. When may the Anti-Monel Laundering Council (AMLC) perform an inquiry into
deposits of a person?
a. For purposes of determining his liabilities
b. To determine his assets with proper court order.
c. Upon order of the court when there is a probable cause that the deposits are
related to crime of unlawful activities defined in RA 9194.
d. When there is written consent of the depositor.
14. For purposes of determining violation of the provisions of Anti-Money Laundering Law,
a transaction is considered as a "Suspicious Transaction" with "Covered Institutions"
regardless of the amount involved, where which the following circumstances exist/s?
a. The amount involved is not commensurate with the client's business or financial
capacity.
b. There is no underlying legal or trade obligation, purpose or economic justification.
c. Client is not properly identified.
d. All of the above
15. Freeze order shall be only for a period of ______ unless extended by the court upon
application by the AMLC.
a. 20 days
b. 40 days
c. 60 days
d. 80 days
16. Identify the composition of AMLC.
I. BSP Governor
II. Commissioner of lnsurance Commission
III. Chairman of SEC
IV. DTI Secretary
V. Department of Finance Secretary
a. I, IV, V
b. I, II, IV
c. I, II, III
d. I, II, III, IV, V
17. What is/are the function/s of the Anti-Monel Laundering Council (AMLC)?
a. To institute civil forfeiture proceedings and all other remedial proceedings through
the OSG.
b. To cause the filing of complaints with the DOJ or Ombudsman for the prosecution
of money laundering offenses.
c. To initiate investigations of covered transactions, money laundering activities and
other violations of RA 9160.
d. All of the above
18. A taho vendor deposited P600,000 in a single banking day. What type of report/s will
be prepared by the bank, if any, and what kind of transaction happened?
a. A non-covered transaction, hence the bank does not need to prepare any type of
reports.
b. The transaction is both covered and suspicious; hence the bank needs to prepare
a suspicious transaction report.
c. A covered transaction but does not qualify as suspicious transaction.
d. None of the above.
19. Which of the following is a covered institution under the Anti-Money Laundering Act?
a. Lawyers acting as an independent legal professional in relation to information
concerning their clients or where disclosure of information would compromise
client confidences or the attorney-client relationship.
b. Jewelry dealers in precious metals/stones, who as, a business, trade in precious
metals/stones, for transactions in excess of P 500k.
c. Land Registration Authority and all of its Register of Deeds on all real estate
transaction with price exceeding P200,000.
d. Foreign exchange corporations, money changers, money payment remittance,
and transfer companies and other similar entities.
20. What are the prohibited accounts under the Anti-Money Laundering Act?
a. Numbered accounts, including non-checking numbered accounts
b. Anonymous Accounts and Accounts under Fictitious Names
c. Personal deposit account
d. None of the above
21. Which of the following shall promulgate the IRR of AMLA?
a. Bangko Sentral ng Pilipinas
b. Insurance Commission
c. Securities and Exchange Commission
d. All of the Above
22. Upon request for assistance from a foreign state, these principles shall be at all times
recognized.
a. Principles of Mutuality and Reciprocity
b. Principles of Mutuality and Equality
c. Principles of Equality and Reciprocity
d. Principles of Equity and Mutuality
23. A document is authenticated if
a. Signed or certified by a judge, magistrate or equivalent officer in or of, the
requesting State.
b. Authenticated by the oath or affirmation of a witness or sealed with an official or
public seal of a minister, secretary of State, or officer in or of, the government of
the requesting State.
c. Either a or b
d. Both a and b
24. Who is the chairman of the Anti-Money Laundering Council?
a. The Commissioner of the Insurance Commission
b. The Governor of the Bangko Sentral ng Pilipinas
c. The Chairman of the Securities and Exchange Commission
d. The Vice President of the Philippines
25. Instead of enforcing the order of forfeiture, the court may order the offender to pay an
amount equal to the value of said monetary instrument or property when _________.
a. Any particular monetary instrument or property cannot be located without due
diligence.
b. The monetary instrument or property is not commingled with other monetary
instruments or property belonging to either the offender himself or a third person
or entity.
c. Located inside the Philippines or has been placed or brought inside the jurisdiction
of the court.
d. The monetary instrument or property has been substantially altered, destroyed, or
diminished in value.
 Bank Secrecy Law and
Unclaimed Balances Law

CABRAL, Trisha Aleana C.

DIGNADICE, Pamela Reichelle B.
MERCADO, Lindsay P.
OCAMPO, Arriane Akia I.
ROCERO, Rubylyne M.
ROM, Ma. Jessa N.
SPRINGAEL, Merry Rose M.
VASALLO, Adrian N.
VERGARA, Rnell A.
 Bank Secrecy Law and Unclaimed Balances Law
Test Bank

Part I. True or false.

1. Transient foreigners’ deposits are exempt from garnishment. F

2. Bank Secrecy Law has three main purposes. F
3. Trust accounts are covered by bank secrecy law. T
4. Investment in government bonds are not covered by bank secrecy law. F
5. According to Republic Act 1405, all acts, special charters, executive orders, rules
and regulations which are inconsistent with the provisions of this Act are hereby
followed. F
6. Foreign Currency Deposits, under Section 9 of RA 6426, are exempt from
garnishment. F
7. The purpose of this law is to encourage private hoarding and at the same time
encourage the people to deposit their money in banking institutions. F
8. Examination is made by an internal auditor hired by the bank to conduct its regular
audit provided that the examination is for audit purposes only and the results
thereof shall be for the exclusive use of the bank. F
9. Only bank directors can disclose bank information to inquirers. F
10. In garnishment, there is no violation of the bank secrecy law since the amount of
the deposit is not actually disclosed. T

Part II. Select the best answer.

1. Which of the following is not an exception to the secrecy of bank deposits?
a. In the course of a special or general examination of bank and is specifically
authorized by the Monetary Board (BSP) after being satisfied that there is reasonable
ground to believe that a bank fraud or serious irregularity has been or is being committed.

b. Philippine Deposit Insurance Commission (PDIC) who may inquire into bank
deposits when there is a finding of unsafe or unsound banking practices.
c. The Presidential Commission on Good Government (PCGG) who, in the conduct of
its investigations to recover ill-gotten wealth accumulated by former President Ferdinand
E. Roxas, his immediate family, relatives, subordinates and close associates, may issue
subpoenas.
d. Upon the order of a competent court or in proper cases by the Anti-Money
Laundering Council where there is probable cause of money laundering and in some
instances even without court order.

2. The power of the Ombudsman to subpoena deposit information of a government official

may be exercised when certain conditions concur. Which of the following is not a
condition:
a. There must be a case pending before a court of competent jurisdiction.
b. The account must be clearly identified
c. The inspection must be limited to the subject matter of a closed case
d. The bank personnel and the account holder must be notified to be present during
the inspection.

3. For peso deposits, any violation of this law will subject offender upon conviction to an
imprisonment of ____________ years or a fine of _____________ pesos or both, in the
discretion of the court.
a. 1-2 years; P20,000
b. 1-5 years; P25,000
c. 1-2 years; P5,000-P20,000
d. 1-5 years; P5,000-P25,000

4. For peso deposits, any violation of this law will subject offender upon conviction to an
imprisonment of not more than ____________ years or a fine of not more than
_____________ pesos or both, in the discretion of the court.

a. 5 years; P30,000
b. 1 year; P25,000
c. 5 years; P20,000
d. 1 year; P20,000

5. Upon the order of a competent court, the following cases are exception on the bank

secrecy law’s general rule, except:

a. Of bribery, dereliction of duty of public officials (including plunder)

b. Where the money deposited or invested is the subject of litigation
c. Slander cases regarding bank information
d. Involving unexplained wealth under RA 3019, or the Anti-Graft and Corruption
Practices Act.

6. One of the exceptions on RA 1405 is upon the inquiry of the Commissioner of BIR, the
bank information such as deposits could be disclosed. Which of the following is one of
these exceptions?
a. The purpose of determining the gross gifts of a deceased depositor.
b. To look upon the tax liability of a depositor.
c. Pursuant to a request for tax information of specific taxpayers made by foreign tax
authority pursuant to a tax treaty under The Exchange Information on Tax Matters
Act of 2009.
d. Those exempt under Rules of Court

7. The following are common exceptions on the bank secrecy law in peso and foreighn
currency:
a. Anti-Graft and Corruption Practices Act.
b. Anti-Money Laundering Act
c. Human Security Act
d. PDIC Law
8. Caliente is the bank director of EtBank. She is planning to obtain a loan of P2,500,000
to modify her walk-in closet. Given such:
a. Caliente is required to have a written waiver of secrecy of her bank deposits.
b. Caliente implicitly waived the secrecy of her bank deposits.
c. No waiver is required for Caliente considering the loan did not exceed the
P10,000,000 threshold.
d. If Caliente can have the approval of the Board, waiver is not needed.

9. Examinations made by these organizations are valid on the exceptions of RA 1405,

except:
a. BSP
b. COA
c. PDIC
d. PSG

10. Anita, a bank manager of 123 BankEt, saw the bank information of Buhay, her exlover.
As she and her friend Cathy are having dinner, she tells Cathy the amount of
Buhay’s balance. Both of them can’t believe that Buhay could have saved up P100,000
since the pandemic started. Coincidentally, Cathy’s workmate is Buhay’s wife. Buhay’s
wife did not know how and why Buhay could have deposited such a large amount of
money. Buhay’s wife posted his rage in her social media account, slandering Buhay.
Under RA 1405, who is liable? a. Anita
b. Anita and Cathy
c. Buhay and his wife

d. Cathy and Buhay’s Wife

 INTELLECTUAL
PROPERTY CODE OF
THE PHILIPPINES
(RA 8293, AS AMENDED BY RA 10372)

CABRAL, Trisha Aleana C.

DIGNADICE, Pamela Reichelle B.
MERCADO, Lindsay P.
OCAMPO, Arriane Akia I.
ROCERO, Rubylyne M.
ROM, Ma. Jessa N.
SPRINGAEL, Merry Rose M.
VASALLO, Adrian N.
VERGARA, Rnell A.
 INTELLECTUAL PROPERTY CODE OF THE PHILIPPINES

I. Multiple Choice Questions

1. Any visible sign capable of distinguishing the goods (trademark) or services (service
mark) of an enterprise and shall include a stamped or marked container of goods.
a) Trade Name
b) Trademark
c) Collective Mark
d) Rights

2. Y is a chemist by profession particularly a perfumer. A perfumer makes perfume. Y

discovered a certain perfume by combining the extracts from cellar woods and jasmine.
The cellar wood was the base tone and the jasmine was the top tone. He named this
perfume eternity.
Can he register the fragrance of the perfume as trademark?
a) Yes, because the fragrance is within the definition of trademark
b) Yes, because the fragrance is used to distinguish Y’s goods
c) No, because the fragrance is not a visible sign
d) No, because the fragrance is generic

3. A procedure whereby seized goods may be provisionally restored to their owner pending
the outcome of an action to determine the rights of the parties concerned.
a) Replevin
b) Holistic
c) Idem Sonans
d) Goodwill

4. Close or ingenious imitation as to be calculated to deceive ordinary persons, or such a

resemblance to the original as to deceive an ordinary purchaser, giving such attention
as a purchaser usually gives, and to cause him to purchase the one supposing it to be
the other.
a) Replica
b) Colorable Imitation
c) Hard Imitation
d) Normal Imitation

5. Refer to the basic nature of the wares or services provided rather than to the more
idiosyncratic characteristics of a particular product
a) Generic Mark
b) Descriptive Mark
c) Descriptive Term
d) Generic Term
INTELLECTUAL PROPERTY CODE OF THE PHILIPPINES

6. For copyright, when does protection commence?

a) From the moment of registration
b) From the moment of application
c) From the moment of creation
d) From the moment of infringement

7. All the following are factors to be considered in determining whether use of a copyrighted
material falls under fair use, except:
a) The purpose and character of use
b) The prestige of the author
c) The amount and substantiality of the portion used
d) The effect to the market value of the copyrighted work

8. According to this Doctrine, there is patent infringement if the principle or mode of

operation is the same or substantially the same.
a) Doctrine of Operational Comparability
b) Doctrine of Equivalents
c) Doctrine or Originality
d) Doctrine of Patent Infringement

9. All are requisites for an invention to be patented, except:

a) Ornamentality
b) Industrial Applicability
c) Novelty
d) Inventive Step

10. Intellectual Property Rights consists of the following, except:

a) Trademarks and Service Marks
b) Tradename and Other Rights
c) Copyright and Related Rights
d) Patents
 INTELLECTUAL PROPERTY CODE OF THE PHILIPPINES

II. True or False

F ______ 1. The rights to a trademark shall be 20 years from registration.

T ______ 2. The rights to a trademark in a certificate of registration may be renewed for

periods of 10 years at its expiration.

F ______ 3. GENERAL RULE: Within three (3) years from the date of the registration of
the mark under this Act.

T ______ 4. In any suit for infringement, the owner of the registered mark shall not be
entitled to recover profits or damages unless the acts have been committed
with knowledge that such imitation is likely to cause confusion, or to cause
mistake, or to deceive.

F ______ 5. R.A. 8293 or the Intellectual Property Code of the Philippines took effect
on January 1, 1996.

T ______ 6. If the application relates to a Utility Model, inventive step is not necessary.

T ______ 7. Intellectual Property Rights consist of: copyright and related rights,
trademarks and service marks, geographic indications, industrial designs,
patents, layout-designs, and protection of undisclosed information.

F ______ 8. In contrast with patent, a copyright has the ability to give exclusive right to
the art disclosed.

F ______ 9. Non-patentable inventions are not subject to both patent and copyright.

T ______ 10. A certificate of registration creates no rebuttable presumption of copyright

validity where other evidence in the record casts doubt on the question. in
such case, validity will not be presumed.
 PDIC
(Republic Act No. 3591)

CABRAL, Trisha Aleana C.

DIGNADICE, Pamela Reichelle B.
MERCADO, Lindsay P.
OCAMPO, Arriane Akia I.
ROCERO, Rubylyne M.
ROM, Ma. Jessa N.
SPRINGAEL, Merry Rose N.
VASALLO, Adrian N.
VERGARA, Rnell A.
 PDIC LAW – TEST BANK

(Republic Act 3591)

True or False

1. A depositor having a single and joint account may have insured deposits of Php 500,000
only. (FALSE)
2. In a For the Account Of (FAO) Account, Joshua For the Account of Maris, Joshua is the
depositor. (FALSE)
3. One of the functions of PDIC is a co-regulator of banks. (TRUE)
4. Insured amount shall be divided equally between or among co-owners of a joint account
unless a different sharing stipulation is stated on the deposit documents. (TRUE)
5. The Philippine Deposit Insurance Corporation (PDIC) was established on June 22, 1963
by Republic Act 3591. (TRUE)
6. Banks operating outside the Philippines or foreign branches of a domestic bank are
included in the membership of PDIC. (FALSE)
7. Deposit refers to a claim or suit against the assets of a closed bank, or for specific
performance, or breach of contract, or damages, of whatever nature or character, whether
for money or otherwise, liquidated or unliquidated, fixed or contingent, matured or current,
denied by the receiver. (FALSE)
8. PDIC needs to settle claims of depositors within 6 months from the date of the filing of the
claim. (TRUE)
9. The maximum amount that PDIC pays on all valid deposits is P700,000 per depositor per
bank. (FALSE)
10. The PDIC accepts claims that are incomplete or lacking in requirements. (FALSE)

Multiple Choices

1. Which of the following is not covered by the PDIC deposit insurance?

a. Savings Account
b. Notice Order of Withdrawal
c. Trust Account
 d. Time Deposit
2. Granting high interest rates is not allowed when the bank has _____
a. Liquid assets-to-capital ration of less than 10%
b. Liquid assets-to-deposits ratio of more than 10%
c. Liquid assets-to-capital ratio of more than 10%
d. Liquid assets-to-deposits ratio of less than 10%
3. Which of the following documents are not considered to be an original evidence of deposit?
a. Used Checks
b. Savings Passbook
c. Bank Statement
d. ATM Card
4. The following are part of the governing body of PDIC, except:
a. DOF Secretary
b. BSP Governor
c. PDIC President
d. DFA Secretary
5. How many years can a depositor file their deposit insurance claims?
a. 3 years
b. 5 years
c. 2 years
d. 1 year
6. Failure to settle claims within 6 months due to grave abuse of discretion, gross negligence,
bad faith, or malice will:
a. Subject the directors, officers or employees of the corporation responsible for the
delay.
b. It might lead to imprisonment from 6 months to 1 year.
c. Both A and B
d. None of the above
7. The following are the functions of PDIC, except:
a. Deposit Insurer
b. Portfolio Manager
c. Co-regulator of banks
d. Receiver and liquidator of closed banks
8. Which of the following is eligible to sign the claim form?
a. Depositor
b. Sibling
c. Spouse
d. All of the above
9. PDIC is an attached agency of the:
a. Bureau of Internal Revenue
b. Commission on Audit
c. Bureau of Treasury
d. Department of Finance
10. The risk to a bank that PDIC covers is the:
a. Risk of theft
b. Risk of bank closure
c. Risk of bank loss due to fire
d. None of the above
 Truth in
Lending Act
(Republic Act No. 3765)

CABRAL, Trisha Aleana C.

DIGNADICE, Pamela Reichelle B.
MERCADO, Lindsay P.
OCAMPO, Arriane Akia I.
ROCERO, Rubylyne M.
ROM, Ma. Jessa N.
SPRINGAEL, Merry Rose M.
VASALLO, Adrian N.
VERGARA, Rnell A.
 Truth in Lending Act
(Republic Act No. 3765)

Multiple Choice Questions

1. The following are some of the information required to be furnished to the borrower,
except
a. Net amount to be financed
b. Finance charge expressed in terms of pesos and centavos
c. The percentage that the finance bears to the total amount to be financed expressed
as a simple annual rate on the outstanding unpaid balance of the obligation. d.
None of the above
2. Which of the following statements are correct?
I. Any creditor who violates the law is liable in the amount of P100 or in an amount
equal to twice the finance charged required by such creditor.
II. Any person who willfully violates any provision of this law or any regulation issued
thereunder shall be fined by not less than P1,00 or more than P5,000 or
imprisonment of not less than six months, nor more than one year but not both.
III. Action to recover such penalty may be brought by such person within one year
from the date of the occurrence of the violation, in any court of competent
jurisdiction.
IV. In any action under this subsection in which any person is entitled to a recovery,
the creditor shall be liable for reasonable attorney's fees and court costs as
determined by the court.
a. I, II, III
b. II, III, IV
c. I, III, IV
d. I, II, III, IV
3. What is the effect on the obligation in case of violation of RA 3765?
a. Valid and enforceable
 b. Void and enforceable
c. Valid and unenforceable
d. Voidable and enforceable
4. The information required to be disclosed to the debtor or borrower must be made after
the consummation of the transaction. a. True b. Prior
c. Before and after
d. None of the above
5. Statement I: The information required to be disclosed to the debtor or borrower must
be clearly stated in writing.
Statement II: The debtor is required to inform the creditor of the facts stated under RA
3765.
a. Both statements are correct
b. Both statements are incorrect
c. Only statement I is correct
d. Only statement II is correct
6. ABC Corporation bought six (6) units of Toyota Avanza from XYZ Corporation. Y Bank
granted a loan to ABC Corporation, which executed a financing agreement that
provided the principal amount, the installment payments, the interest rates, and the
due dates. On due dates of the installment payments, ABC Corporation was asked to
pay for some handling charges and other fees which were not mentioned in the
Financing Agreement. Can ABC Corporation refuse to pay the same?
a. No, because handling charges and other fees are usual in certain banking
transactions.
b. Yes, because Y Bank is required to provide ABC Corporation not only the amount
of the monthly installments but also the details of the finance charges as required
by the Truth in Lending Act.
c. No, because the Finance Agreement is a valid document to establish the existence
of the obligation.
d. Yes, because legally, finance charges are never allowed in any banking
transaction.
7. Any person in the business of extending loans or selling or renting property or services
on a time, credit, or installment basis, either as principal or agent, is also required to
make the same written disclosure set forth under RA 3765. a. True b. False
8. Which of the following statements is/are incorrect?
Statement I. If the creditor failed to comply with the disclosure requirements, the debt
is forgiven, or the goods purchased on a credit or installment basis are deemed fully
paid.
Statement II. The charges, individually itemized, which are paid or to be paid by such
person in connection with the transaction but which are not incident to the extension
of credit, should be included in the written disclosure furnished to the debtor. a.
Statement I only
b. Statement II only
c. Both statements
d. Neither Statement I nor Statement II
9. What particular section in RA 3765 states the information required to be furnished to
the debtor by a creditor? a. Section 1 b. Section 2
c. Section 3
d. Section 4
10. The following statements are the penalties in case of violation of RA 3765, also known

as “Truth in Lending Act”, except

a. Liable in the amount of P100 or in an amount equal to twice the finance charged
required by such creditor in connection with such transaction, whichever is the
lower.
b. Liable in the amount of P100 or in an amount equal to twice the finance charged
required by such creditor in connection with such transaction, whichever is the
greater.

c. Also liable for reasonable attorney’s fees and court costs as determined by the
court.
 d. Any person who willfully violates any provision of this law or any regulation issued
thereunder shall be fined by not less than P1,00 or more than P5,000 or
imprisonment of not less than 6 months, nor more than one year or both.
11. It is the uniform percentage representing the ratio between the finance charge and the
amount to be financed under the assumption that the loan is payable in one (1) year
with a single payment upon maturity and there are no upfront deductions to the
principal.
a. Non-finance charges
b. Finance charge
c. Simple annual rate
d. Down payment
12. The following situations are punishable under RA 3765, except
a. A creditor failed to disclose the percentage that the finance bears to the total
amount to be financed expressed as a simple annual rate on the outstanding
unpaid balance of the obligation.
b. BDO credit in connection with its credit transaction fails to disclose to any person
any information in violation of this Act or any regulation issued.
c. Land Bank financing loan arrangement does not include the total amount to be
financed as a bank policy.
d. A creditor includes the cash price or delivered price of the property or service to be
acquired but not the finance charge expressed in terms of pesos and centavo in
the financing contract.
13. To protect its citizen from lack of awareness of the true cost of credit by means of
disclosure of information related to credit lend is the purpose of RA 3591. a. True b.
False
14. Which among in these transactions is an example of credit?
a. Deed of trust
b. Bank deposits
c. Insurance contracts
d. Sale of bonds
15. The cash price or delivered price of the property or service to be acquired should be
included in the written disclosure furnished to the debtor. a. True b. Discount price
c. Acquisition price
d. Purchase price
16. Which of the following are considered credit?
I. Loan
II. Mortgage
III. Rental Purchase Contract IV. Contract to sell a. I only b. II only
c. I, II, II
d. I, II, III, IV
17. Finance charge includes the following, except
a. Interest
b. Service charges
c. Discounts
d. All of the above are finance charges
18. Any person engaged in the business of extending credit who requires as an incident
to the extension of credit, the payment of a finance charge is called ______. a. Debtor
b. Broker
c. Borrower
d. Creditor
19. Which of the following statements is a credit transaction?
a. Any contract to sell, or sale or contract of sale of property or services, under which
part or all of the price is payable after making such sale or contract.

b. Any rental-purchase contract; any contract or arrangement for the hire, bailment,
or leasing of property.
c. Any option, demand, lien, pledge, or other claim against, or for the delivery of,
property or money.
d. All of the above
20. Statement I: Creditors are any person engaged in the business of extending credit and
also the one who requires as an incident to the extension of credit, the payment of
finance charges.
Statement II: Finance charges are interest, fees, service charges, discounts, and other
charges incident to the extension of credit. a. Both statements are correct b. Both
statements are incorrect
c. Only statement 1 is correct
d. Only statement 1 is incorrect
21. Statement I: RA 3765 aims to protect the Depositing public and promote financial
stability.
Statement II: RA 3591 aims to protect the State's citizens from lack of awareness of
the true cost of credit.
a. Both statements are correct
b. Both statements are incorrect
c. Only statement I is correct
d. Only statement I is incorrect

For nos. 22-25

Anna, a sari-sari store owner, wanted to grab the opportunity to expand her business
by establishing another store that primarily sells school supplies. The demand for these
products has increased due to the modular mode of learning imposed by the government
in response to the pandemic. However, because of liquidity problems, Anna cannot
provide the capital needed for the said expansion; thus, she decided to borrow money
from ABC Bank.

On May 5, 2021, she visited ABC Bank and applied for a loan and was immediately
accommodated by Ben, the bank officer, who was heartbroken during that time. Due to
the pain and grudge Ben is experiencing, he willfully did not tell Anna the information
regarding her loan. Furthermore, he also intentionally did not hand Anna a written paper
that shows the disclosure statement on loan or credit transactions. On that same day, her
loan amounting to P50,000 was successfully granted; however, the bank still failed to
disclose information such as interest she must pay in relation to the said loan.
 Six months later, as Anna is preparing to remit her monthly payment for the loan, she
was shocked that she was obliged to pay finance charges amounting to P4,000. Upon
arrival at the bank, she immediately raised her concern about the said matter.

22. Based on the scenario above, who is obliged to disclose information such as finance
charges relating to such credit transactions? a. Anna b. Ben
c. Bank
d. Ben and the bank
23. For how much would be the creditor be liable to Anna for the said failure to disclose?
a. 30,000
b. 20,000
c. 45,000
d. 60,000
24. When would be the last day Anna may recover such penalty?
a. November 5, 2021
b. January 5, 2021
c. May 5, 2022
d. May 5, 2023
25. If Anna decided to bring the said violation in a court of competent jurisdiction, attorney
fees and court cost would be borne by? a. Anna b. Ben
c. Bank
d. Ben and the bank
Intellectual Property Law (RA 8293, As Amended)

QUESTIONNAIRE

Atizado, Pouline Kate B.

Conde, Marynhel S.

Lalim, Arvin Stephen S.

Mora, Frances Joyce M.

Ogerio, Jude Davidson R.

Priolo, Kyle Ivy A.

Sajonia, Mei – Jie Pearl V.

Sese, Steffanie Rhysse D.

Tatel, Yvette C.
T/F

1. Architectural design is any composition of lines and colors or any three-

dimensional form, whether associated with lines or colors. Provided that such
composition or form gives a special appearance to and can serve as a pattern
for a product or handicraft.

Answer: False. Chapter VIII Sec. 112.

2. In a published edition of work, the publisher shall have a copyright consisting

merely of the right of reproduction of the typographical arrangement of the
published edition of the work.
Answer: True. Chapter III Sec. 174

3. No patent may be granted unless the application identifies the inventor.

Answer: True. Chapter IV Sec. 32.

4. The rights in a mark shall be acquired by mere creation of the mark made validly
in accordance with the provisions of law on trademarks.
Answer: False. Part III Sec. 122

5. The making of ephemeral recordings by a broadcasting organization by means

of its own facilities and for use in its own broadcast constitutes infringement on
copyright.
Answer: False.
6. Damages can be recovered of acts of infringement committed before the
infringer had known or had reasonable grounds to know of the patent.
Answer: False.

7. The extended term for protection in case of broadcasts shall only be applied to
old works with subsisting protection under prior law.
Answer: True.
 8. An invention shall still be considered new even if it forms part of a prior art.
Answer: False.

9. Patent rights belong to the inventor, his heirs, or assignees. When two or more
persons have jointly made an invention, the right to a patent shall belong to
them jointly.
Answer: True.

10. The fair use of a copyrighted work for criticism, comment, news reporting,
teaching (including a limited number of copies for classroom use), scholarship,
research, and similar purposes is not an infringement of copyright.
Answer: True.

Multiple Choice Questions

1. Mr. Norman Osborn is the head scientist of the company Osborn Corp. While
experimenting a new serum, OZ formula, he discovered a new element which he
called Venom. Mr. Osborn filed for the application of patent for the element. Is
Venom patentable?

a. No. It does not involve an inventive step.

b. Yes. It may provide technical solution of a problem in human activity.
c. No. Discoveries, scientific theories, and mathematical methods are non-
patentable. (Chapter II Sec. 22)
d. Yes. The element is industrially patentable.

2. Suppose OZ formula is the one he got patented. Who has the right to the
patent?

a. Osborn Corp.
b. Harry Osborn, his heir.
c. Peter Parker, the person whom the formula was made for.
d. Norman Osborn. (Chapter III Sec. 28.)

3. A writer with a pen name Mob Mong wrote a book entitled "Specimen." He
published the book with Guttenberg Press, a book publisher. Mob Mong
remained anonymous with his work.

Who owns the copyright? Select the best answer.

 a. Mob Mong, the author.
b. Guttenberg Press, the publisher.
c. The government.
d. Guttenberg Press represents the author unless the contrary appears. (Chapter
VI Sec. 179.)

4. What is the term of protection of a copyright?

a. 50 years from the date on which the work was first lawfully published.
(Chapter XVI. Sec 213.)
b. 50 years from the date of creation of the work.
c. 25 years from the moment the author disclosed his identity.
d. 25 years from the date of compliance with law on copyright.

5. The rights for a mark are required through.

a. First-come first-serve
b. Registration
c. Long-term use
d. Prior Use

6. Ms. Mel is a fanfiction author. To finance her studies, she decided to open
commissions on any topic a client wishes. Her classmate placed a commission
and asked that the fanfiction be complete by the end of the month. Who owns
the fanfiction and/or the copyright?

a. Ms. Mel owns the copyright; her classmate owns the fanfiction.
b. Ms. Mel owns both the copyright and the fanfiction.
c. Her classmate owns both the copyright and the fanfiction.
d. Ms. Mel owns the fanfiction; her classmate owns the copyright.

7. The submission of a literary, photographic, or artistic work to a newspaper,

magazine or periodical for publication shall constitute only a(n)______ to make a
single publication.

a. Certificate of Registration
b. Proof of work
c. Actual work
d. License

8. Any visible sign capable of distinguishing the goods or services of an enterprise

and can include a stamped or marked container of goods
 a. Trademark
b. Industrial Design
c. Copyright
d. Trademark

9. (1) Patent. Protection for patents lasts for twenty (20) years from filing of
application, subject to payment of annuities for validity.
(2) Patent. A utility model registration’s term is seven (7) years after the filing date
of the application and is not renewable.

a. Statement 1 is correct
b. Statement 2 is correct
c. Both statements are correct
d. Neither of the statements are correct

10. There are two (2) types of rights under the copyright system of the Philippines:

(1) This consist of the exclusive right of the creator or author of a work to carry
out, authorize or prevent acts such as the reproduction of the work public
performance of the work), or transformation of the work.
(2) This entitles the author or creator to take measures to protect the connection
between himself and the work.

a. Economic Rights; Moral Rights

b. Moral Rights; Economic Rights
c. Economic Rights; Political Rights
d. Economic Rights; Biological Rights
MULTIPLE CHOICE QUESTIONS

Intellectual Property Office Questions

1. The Following are functions of the Intellectual Property Office, except one.

a. examine application for grant of letters patent for inventions and register utility models
and industrial designs.

b. Examines applications for registration of msks, geographic indication, integrated

circuits.

c. administratively adjudicate contested proceedings affecting Intellectual Property

Rights.

d. Exercise exclusive appellate jurisdiction over all decisions rendered by the director of
legal affairs.

Answer: D

2. The following are qualifications of the Director General and Deputies Director General,
except one.

a. Natural born citizens of the philippines

b. 35 years old and above

c. Holder of college degree

d. All of the above

e. None of the above

Answer: D

3. When was R.A 8293 implemented?

a. January 1, 1995

b. January 1, 1996

c. January 1, 1997
d. January 1, 1998

Answer: D

4. The term ___ refers to the Intellectual property office created by this act.

a. Technology arrangements

b. intellectual Property Gazette

c. Intellectual Property Office

d. Office

Answer: D

5. Who shall appoint the Director General of the IPO?

a. Senate President

b. Department of trade and industry

c. President

D. Bureau of Patents

Answer: C

6. The Director General shall serve of at least

a. 3 years

b. 4 years

c. 5 years

d. 6 years
Answer: C

7. Statement 1: The Office shall have all records, books, drawings, specifications,
documents, and other papers and things relating to intellectual property rights
applications filed with the Office.

Statement 2: The Director General shall cause to be printed and made available for
distribution, pamphlet copies of this Act, other pertinent laws, executive orders and
information circulars relating to matters within the jurisdiction of the Office.

a. Only statement 1 is true

b. Only statement 2 is true

c. Both statements are False

d. Both statements are true

Answer: D

8. the Director General is eligible for reappointment provided that

a. He had served the initial term of 7 years

b. the Director General is not heavily ill

c. the Director General would want to

d. He had served 5 years in the first term

Answer: A
 Law on Patent Questions

1. Law on Patents under the Republic Act 8923 grants protection of new inventions such as;

a. Programs for Computers

b. Discoveries or Scientific Theories
c. A new drug that could treat cancer
d. Method for treatment for the human body by surgery or therapy.

Answer: C

2. Barbatos, a mechanical engineer employee under Riego Steel made an invention that is not
part of his Activity duties using the time, materials and facilities of the company in the course of
his employment contract. The right over the invention or patent shall belongs to;

a. The employer, because what barbatos used in creating the invention were all properties
of the company and he is working under an employer.
b. The Employee, because what he did was not part of his activity duties. Therefore neither
the company nor the employer have the right to claim ownership on his invention.
c. The employer, because Barbatos is binded with a contract with the company and his
employer.
d. The employee, just because he’s the one who created it.

Answer: B

3. Jan Legin and Jade were bestfriend who joined a competition that involved creation of a new
innovative invention. Businessmen from different companies joined to find great works that are
worth it to invest. One of the few inventions that caught the attention of the several businessmen
were Jan Legin and Jade’s, that's why they received a lot of offers of commission. After the
competition, Jan decided to file an application to their invention and without asking for her best
friend's approval, commissioned their work to one of the offerers which made jade angry
because she already said yes to a different businessman. Both are claiming rights to the
invention, which statement is true?

I. The people who have the right to the patent of the invention were the both of them since
they are best friends and worked hard till the very end to finish that invention.
II. Jan is the first to file the application of such invention therefore he has the right to the
patent of the invention and it’s okay for him to commission it to other people.
III. Jade, even though did not file an application, should still have the right to the invention
out of respect to her efforts.

Answer: Statement II is correct

4. Doufu created several inventions that do not form a single general inventive concept
However she still proceeds to file an application that claims all her inventions are counted as
one. Which statement is would be the best action in this situation

I. The director must allow Doufu to file the application since its her invention
II. They should not proceed to let her file an application since her invention does not form a
single general inventive concept.
III. The director should or may require that the application be restricted to a single invention.
IV. Doufu could appeal to the restriction of the director for she has the rights over her
inventions.

a. Statements I and II are correct

b. Statements II and II are correct
c. Statements III and I are correct
d. Statements IV and II are correct

Answer: B

5. All are examples of requirement for obtaining a patent, except;

a. Innovation should be new

b. Innovation should be Inventive
c. Innovation should be patentable subject matter
d. Innovation should be useful
e. Innovation should have prior use.

Answer: E
 6. Juan Alexandro is a patent owner of a certain invention. However, he discovered that his
invention was being infringed by Yago. What are the possible actions or remedies that Juan
Alexandro can use against Yago?

I. To say that the patent is invalid, under sec 45 RA 165

II. To say that the specification of invention is not now or patentable

a. Only statement I is correct

b. Only statement II is correct
c. Both Statements are correct
d. Both statements are incorrect

Answer: C

7. The DOF A Government agency may exploit and use any inventions by the government even
without the agreement of the patent owner under the section;

a. Section 75 Doctrine of Users

b. Section 74 Use of Invention by the government
c. Section 71 Rights conferred by Patents
d. None of the above

Answer: B

8. The Publication of patent Application shall be;

I. It should be Published under the IPO Gazette together with a search document
established by or on behalf of the Office citing any documents that reflect prior art
II. after the expiration of eighteen (18) months from the filing date or priority date
III. All of the above

Answer: III
Trademark Questions

1. It means any visible sign designated as such in the application for registration and capable of
distinguishing the origin or any other common characteristic.
a. Collective mark
b. Trade names
c. Collective name
d. Collective trade

Answer: A

2. Generally, how are rights over a mark acquired?

a. Through registration
b. Through continuous use
c. Through prior use
d. Through prescription

Answer: A

3. Which of the following marks can be registered?

a. Marks consisting of a name of a living individual
b. Marks consisting of a name of a living President
c. Marks consisting of a name of a deceased President during the life of his widow
d. Marks consisting of a name of a deceased individual during the life of his widow

Answer: D

4. Statement 1: The coat of arms of the Philippines cannot be registered as a trademark

Statement 2: The coat of arms of Malaysia cannot be registered as a trademark in the
Philippines
a. Only Statement 1 is true
b. Only Statement 2 is true
c. Both statements are true
d. Both statements are not true
Answer: C

5. How long do rights to a trademark last?

a. 5 years from registration
b. 10 years from registration
c. 15 years from registration
d. 20 years from registration

Answer: B

6. Lady Gaga filed a trademark application for her diving apparel which she calls "Lady
Goggles". Four years later, Lady Gaga discovered that a certain Lady Garcia is selling diving
apparel under the same name, i.e, “Lady Goggles". Lady Gaga filed with the IPO an
administrative case for trademark infringement. Lady Garcia contended that Lady Gaga failed to
file a Declaration of Actual Use, and therefore, she cannot be sued for trademark infringement.
Decide.
a. I will rule in favor of Lady Gaga since the deadline for the filing of the Declaration of
Actual Use is five (5) years from the date of registration.
b. I will rule in favor of Lady Gaga since the non-filing of the Declaration of Actual Use does
not affect the status of trademark registration but merely gives rise to penalties.
c. I will rule in favor of Lady Garcia since the non-filing of the Declaration of Actual Use
within three (3) years from the application date gives rise to the cancellation of registration.
d. I will rule in favor of Lady Garcia since the non-filing of the Declaration of Actual Use
bars Lady Gaga from pursuing any remedies with the IPO.

Answer: C

7. Can a registered trademark be canceled?

a. No, trademark rights last for 10 years and can be renewed for periods of 10 years
therefore, cannot be canceled.
b. Yes, a petition to cancel a registered trademark may be filed with the Bureau of Legal
Affairs by any person who believes that he is or will be damaged by the registration of a mark.
c. No, when the registrant has filed a Declaration of Actual Use with proof of such use
within one (1) year from the fifth anniversary of the date of the registration of the mark then the
trademark is valid for 10 years.
d. Yes, a period of more than 5 years is required for the petition to cancel the registered
trademark to be canceled, subject to exceptions.
Answer: B

PART IV:
COPYRIGHT

1. What are the factors to be considered to determine whether the use made of work in
any particular case is Fair Use?
a.) The purpose and character of the use, including whether such use is of a commercial nature
or is for non-profit educational purposes;
b.) The nature of the copyrighted work;
c.) The amount and substantiality of the portion used in relation to the copyrighted work as a
whole; and
d.) The effect of the use upon the potential market for or value of the copyrighted work.

A. A, B, C
B. B, C, D
C. A, B, D
D. A, B, C, D

Answer: D

2. Is it okay to reproduce a published work?

A.) Notwithstanding the provision of Section 177, and subject to the provisions of Subsection
187.2, the private reproduction of a published work in a single copy, where the reproduction is
made by a natural person exclusively for research and private study, shall be permitted, without
the authorization of the owner of copyright in the work

B.) Notwithstanding the provision of Section 177, and subject to the provisions of Subsection
187.2, the private reproduction of a published work in a single copy, where the reproduction is
made by a natural person exclusively for research and private study, shall be not permitted,
without the authorization of the owner of copyright in the work

C.) Notwithstanding the provision of Section 177, and subject to the provisions of Subsection
187.2, the private reproduction of a published work in a single copy, where the reproduction is
made by a natural person exclusively for research and private study, shall be not permitted, with
the authorization of the of the owner of copyright in the work.

D. Notwithstanding the provision of Section 177, and subject to the provisions of Subsection
187.2, the private reproduction of a published work in a single copy, where the reproduction is
made by a natural person exclusively for research and private study, shall be permitted, with the
authorization of the owner of copyright in the work

Answer: A

3. The permission granted under Subsection 187.1 shall not extend to the reproduction of:
(a) A work of architecture in the form of building or other construction;
(b) An entire book, or a substantial part thereof, or of a musical work in graphic form by
reprographic means;
(c) A compilation of data and other materials;
(d) A computer program except as provided in Section 189; and
(e) Any work in cases where reproduction would unreasonably conflict with a normal exploitation
of the work or would otherwise unreasonably prejudice the legitimate interests of the author.

A.) A, B, C, D
B.) B only
C.) B & E
D.) All of the above

4. How long is the term of Moral Rights?

A.) The rights of an author under this chapter shall last during the lifetime of the author and for
fifty (50) years after his death and shall not be assignable or subject to license.
B.) The rights of an author under this chapter shall last during the lifetime of the author and for
fifty (25) years after his death and shall not be assignable or subject to license.
C.) The rights of an author under this chapter shall last during the lifetime of the author and for
fifty (50) years after his death and shall be assignable or subject to license.
D.) The rights of an author under this chapter shall last during the lifetime of the author and for
fifty (25) years after his death and shall be assignable or subject to license.

Answer: A

5. What are the limitations on protection?

Sections 203, 208 and 209 shall not apply where the acts referred to in those Sections are
related to:
a.) The use by a natural person exclusively for his own personal purposes;
b.) Using short excerpts for reporting current events;
c.) Use solely for the purpose of teaching or for scientific research; and
d.) Fair use of the broadcast subject to the conditions under Section 185.

A.) A & C
B.) B & D
C.) A, C, D
D.) A, B, C, D
Answer: D

6. What constitutes copyright infringement in the Philippines?

(a) selling or letting for hire, or by way of trade offering or exposing for sale or hire, the article;
(b) distributing the article for the purpose of trade, or for any other purpose to an extent that will
prejudice the rights of the copyright owner in the work; or
(c) trade exhibit of the article in public.

A.) A only
B.) B only
C.) C only
D.) All of the above

Answer: D

7. What are the remedies available to an owner of a copyright against an infringer?

a ) The copyright owner can file a criminal, civil or administrative action for copyright
infringement.
b ) A criminal case for copyright infringement must be filed in the court situated in the place
where the violation occurred.
c ) The administrative suit is filed at the Bureau of Legal Affairs at the Intellectual Property Office
of the Philippines.
d ) A civil infringement lawsuit is filed in the appropriate court located at the place where the
defendant resides/is located, or where the plaintiff resides/is located, at the option of the
plaintiff.

A.) A, B, D
B.) B & D only
C.) A & C only
D.) A, B, C, D

Answer: D

8.) Which of the following penalties provided by Philippine law for copyright infringement is true?
a.) Imprisonment of between 1 to 3 years or a fine of between 50,000 to 150,000 pesos for the
first offense
b.) Imprisonment of 3 years and 1 day to six years plus a fine of between 150,000 to 500,000
pesos for the second offense.
c.) Imprisonment of 6 years or 1 day to 9 years plus a fine ranging from 500,000 to 1,500,000
pesos for the third and subsequent offenses.
d.) None of the above

Answer: B
 Final Provisions Questions

1. Statement I: For performances not incorporated in recordings, 50 years from the end of
the year in which the performance took place; and
Statement II: The term of the protection of the broadcasts shall be 50 years from the
date the broadcast took place.

a. Only Statement I is true.

b. Only Statement II is true.
c. Both Statements are true.
d. Both Statements are false.

Answer: A

2. Taylor Swift, a foreign singer-producer, was unable to go home due to lockdown. She is
staying in a hotel for a month now. Since all of her fans requested an album, she decided to
record the Fearless album and publish it first here in the Philippines. Is the Fearless album
protected by this Act? (Choose the best answer)

a. Yes, because it is first published here in the Philippines.

b. Yes, because she is staying in the Philippines for a month.
c. No, since she is not a Filipino.
d. No, because she doesn’ have a house in the Philippines.

Answer: A

34. Rudy is your best friend who is also the head of a broadcasting organization. He asked you
which of the following act/s does he have exclusive right to carry out, authorize or prevent:
I. The rebroadcasting of their broadcasts.
II. The recording in any manner, excluding the making of films or the use of video tape, of
their broadcasts for the purpose of entertainment to the public of television broadcasts of the
same.
III. The use of such records for fresh transmissions or for fresh recording.
Which of this/these will you answer?
a. I and II
b. I and III
c. II and III
d. I, II and III

Answer: B
4. Secre, a famous singer violated the law because of infringement. Since it is her first violation,
which criminal penalties should be imposed to Secre?

a. Imprisonment of 1 to 2 years plus a fine between P10,000 to P50,000

b. Imprisonment of 1 to 2 years plus a fine between P50,000 to P150,000
c. Imprisonment of 1 to 3 years plus a fine between P50,000 to P150,000
d. Imprisonment of 1 to 3 years plus a fine between P70,000 to P150,000

Answer: C

5. Shinobu, Rengoku and Muichiro are the authors of the famous book, Demonslayer. In 2017,
Rengoku died because of an accident. In 2019, Shinobu died because of food poison. And in
2020 Muichiro died because of murder. When should be the last term of copyright protection?

a. 20 years after Muichiro’s death.

b. 40 years after Rengoku’s death.
c. 50 years after Shinobu’s death.
d. None of the above.

Answer: D

6. It occurs when there is a violation of any of the exclusive economic or moral rights granted to
the copyright owner.

a. Anti-copyright law
b. Intellectual code
c. Intellectual property violation
d. Copyright infringement

Answer: D

7. Statement I: A criminal case for copyright infringement must be filed in the court situated in
the place where the violation occurred.
Statement II: A civil infringement lawsuit is filed in the appropriate court located at the place
where the defendant resides/is located, or where the plaintiff resides/is located, at the option of
the plaintiff.

a. Only Statement I is true.

b. Only Statement II is true.
c. Both Statements are true.
d. Both Statements are false.
Answer: C

8. Statement I: Reverse Reciprocity of Foreign Laws means any similar burden imposed by the
law of a foreign country on a Filipino citizen seeking protection of intellectual property rights in
that country, shall not be enforceable upon nationals of said country, within Philippine
jurisdiction.
Statement II: All unexpended funds and fees, fines, royalties and other charges collected for the
calendar year are hereby transferred to the Office.

a. Only Statement I is true.

b. Only Statement II is true.
c. Both Statements are true.
d. Both Statements are false.

Answer: B
 INTELLECTUAL
PROPERTY CODE
Questionnaire
BSA 3 - 9

Altatis, Kirsten Kai P.

Catalasan, Charrize Mae O.
De Guzman, Sajid Carlo M.
Famadico, Allysa Fae F.
Overio, Cherilyn S.
Plata, Gemillen V.
Rambuyong, Mary Ann S.
Villanueva, Limuel G.
Zubiri, Norvic Angelo C.
 QUESTIONNAIRE

I. True or False

True 1. Intellectual Property Code of the Philippines was created by virtue of Republic Act
No. 8293 or the Intellectual Property Code of the Philippines, which took effect on
January 1, 1998.

False 2. The nature of the goods to which the mark is applied shall be considered or constitute
an obstacle to registration.
Correction: it shall not

False 3. Descriptive terms, unlike suggestive terms, are eligible for protection in the absence
of secondary meaning because despite shedding some light upon certain
characteristics of the goods or services in dispute, they still involve an element of
incongruity, figurativeness, or imaginative effort on the part of the observer.
Correction: suggestive terms are eligible for protection not descriptive terms

True 4. A collective work is a work which has been created by two or more natural persons
at the initiative and under the direction of another with the understanding that it will
be disclosed by the latter under his own name and that contributing natural persons
will not be identified.

False 5. Derivative works such as dramatization, translations, adaptations, abridgments,

arrangements, and other alterations of literary or artistic works shall not be protected
by copyright as these were only derived from an original work.
Correction: those shall be protected as new works if certain considerations are met.

True 6. No copyright shall subsist in any work of the Government of the Philippines.
Correction: However, prior approval of the government agency or office wherein the
work is created shall be necessary for exploitation of such work for profit.

False 7. Anonymous and pseudonymous works shall not be protected by copyrights unless
the contrary appears, or the pseudonyms or adopted name leaves no doubts as to
the author’s identity, or if the author of the anonymous works discloses his identity.
Correction: Publishers shall be deemed to represent the authors of articles and other
writings published without the names of the authors or under pseudonyms unless the

IPC
 contrary appears, or the pseudonyms or adopted name leaves no doubts as to the
author’s identity, or if the author of the anonymous works discloses his identity.

True 8. The fair use of a copyrighted work for criticism, comment, news reporting, teaching
including limited number of copies for the classroom use, scholarship, researched,
and similar purposes is not an infringement of copyright.

True 9. One of the differences between trade secrets and patents lies in its limitation of
protection. Trade secrets continue as long as it is kept as a secret.

False 10. The person who commissions the work shall own the patent or copyright, unless
otherwise provided in the contract.
Correction: this is only true for patents, copyright belongs to the author/artist and
the ownership to the one who commissioned the work.

II. Multiple Choices

1. It is an act prescribing the Intellectual Property Code and establishing the Intellectual
Property Office, providing for its powers and functions, and other purposes.

A. Republic Act No. 8923

B. Republic Act No. 9283
C. Republic Act No. 8392
D. Republic Act No. 8293

2. Which of the following statements is/are correct?

I. The State recognizes that an effective intellectual and industrial property system is
vital to the development of domestic and creative activity, facilitates transfer of
technology, attracts foreign investments, and ensures market access for our
products.
II. It shall protect and secure both the inclusive and exclusive rights of scientists,
inventors, artists and other gifted citizens to their intellectual property and
creations, particularly when beneficial to the people, for such periods as provided
in this Act.
III. The use of intellectual property bears a social function. To this end, the State shall
promote the diffusion of knowledge and information for the promotion of national
development and progress and the common good.

IPC
 IV. It is also the policy of the State to streamline administrative procedures of
registering patents, trademarks and copyright, to liberalize the registration on the
transfer of technology, and to enhance the enforcement of intellectual property
rights in the Philippines.

A. I, II, III only

B. I, III, IV only
C. II, III, IV only
D. All of the statements are correct

3. Intellectual Property Rights is consists of the following, except:

A. Copy Rights and Related Rights

B. Geographic Indications
C. Aesthetic Creations
D. Industrial Designs

4. It refers to contracts or agreements involving the transfer of systematic knowledge for the
manufacture of a product, the application of a process, or rendering of a service including
management contracts; and the transfer, assignment or licensing of all forms of intellectual
property rights, including licensing of computer software except computer software
developed for mass market.

A. Automatic Transfer Arrangements

B. Technology Transfer Arrangements
C. Online Transfer Arrangements
D. Traditional Transfer Arrangements

5. The Intellectual Property Office (IPO) shall have the following functions, except:

A. Promote the use of patent information as a tool for technology development.

B. Publish regularly in its own publication the patents, marks, utility models and industrial
designs, issued and approved, and the technology transfer arrangements registered.
C. Administratively adjudicate contested proceedings affecting intellectual property
rights.
D. Coordinate with other government agencies and the public sector efforts to formulate
and implement plans and policies to strengthen the protection of intellectual property
rights in the country.

IPC
6. The Office shall be headed by a Director General who shall be assisted by ______ Deputies
Director General. The Office shall be divided into ______ Bureaus, each of which shall be
headed by a Director and assisted by an Assistant Director.
A. two (2); seven (7)
B. three (3); six (6)
C. two (2); six (6)
D. three (3); seven (7)

7. The Director General and the Deputies Director General shall be appointed by the
President for a term of ____ years and shall be eligible for reappointment only ___.
A. 5 (five); once
B. 6 (six): twice
C. 3 (three); twice
D. 4 (four); once

8. Which of the following are the functions of the Bureau of Patents?

I. Search and examination of patent applications and the grant of patents.
II. Registration of utility models, industrial designs, and integrated circuits.
III. Conduct studies and researches in the field of patents in order to assist the Director
General in formulating policies on the administration and examination of patents.
A. I and II only
B. II and III only
C. I and III only
D. I, II, and III

9. One of the functions of The Documentation, Information and Technology Bureau it to

support the search and examination activities of the Office through what
activity/activities?

A. Maintain and upkeep classification systems whether they be national or international

such as the International Patent Classification (IPC) system.
B. Conduct automation planning, research and development, testing of systems,
contracts with firms, contracting, purchase and maintenance of equipment, design and
maintenance of systems, user consultation, and the like.
C. Provide management information support and service to the Office.
D. All of the above

10. Which of the following statements is incorrect?

IPC
A. The Office shall have a seal, the form and design of which shall be approved by the
Director General.
B. The Director General shall cause to be printed and make available for distribution,
pamphlet copies of this Act, other pertinent laws, executive orders and information
circulars relating to matters within the jurisdiction of the Office.
C. All matters required to be published under this Act shall be published in the Office's
own publication to be known as the IPO Gazette.
D. All officers and employees of the Office shall apply or act as an attorney or patent agent
of an application for a grant of patent, for the registration of a utility model, industrial
design or mark nor acquire, except by hereditary succession, any patent or utility
model, design registration, or mark or any right, title or interest therein during their
employment and for one (1) year thereafter.

IPC
Intellectual Property Code Quiz

1. The term "intellectual property rights" consists of the following except?

a. Patents
b. Trademarks
c. Physical Property
d. Industrial Designs

2. Damages can only be recovered in the span of how many years from the time of the
occurrence of the action?
a. 3 years
b. 4 years
c. 5 years
d. 6 years

3. The IPO is divided into how many bureaus?

a. 6
b. 7
c. 8
d. 9

4. IPO stands for?

Answer: Intellectual Property Office

5. Which is not a function of the Bureau of Patents?

a. Search and examination of patent applications and the grant of patents
b. Registration of utility models, industrial designs, and integrated circuits
c. Conduct studies and researches in the field of patents
d. Exercise original jurisdiction in administrative complaints for violations of laws
involving intellectual property rights

6. The Bureau of Legal Affairs only accepts complaints where the total damages
claimed are equal to or more than P150,000
a. True
b. False

7. Which of the following is a function of the Bureau of Trademarks?

a. Registration of utility models, industrial designs, and integrated circuits
b. Hear and decide opposition to the application for registration of marks
c. Registration of utility models
d. Search and examination of the applications for the registration of marks
8. Any technical solution of a problem in any field of human activity which is new,
involves an inventive step and is industrially applicable
Answer: Patentable Invention
9. The term of a patent shall be ___ years from the filing date of the application.
a. 15
b. 20
c. 25
d. 30

10. Design registration can be cancelled on any of the following grounds except:
a. The subject matter of the industrial design is not original
b. The subject matter is new
c. The subject matter of the industrial design extends beyond the content of the
application as originally filed.
d. The subject matter does not meet the definition of an industrial design

11. Every application for registration of an industrial design shall contain:

I. Information identifying the applicant
II. The name and address of the creator, or where the applicant is not the creator, a
statement indicating the origin of the right to the industrial design registration
III. Specimen of the article embodying the industrial design
IV. A request for registration of the industrial design
a. I, II ,III ,IV
b. I and IV
c. II, III, IV
d. I, II, IV

12. The license will only be granted under the which of the circumstances?
a. The petition for compulsory license seeks to remedy a practice determined after
judicial or administrative process to be anti-competitive
b. The petitioner has made efforts to obtain authorization from the patent owner on
reasonable commercial terms and conditions but such efforts have not been successful
within a reasonable period of time
c. In cases of public non-commercial use
d. In situations of national emergency or other circumstances of extreme urgency

13. Statement 1: Two (2) or more assessors may be appointed by the court.
Statement 2: The Director of Intellectual Property upon receipt of the final judgment of
cancellation by the court, shall record that fact in the register of the Office and shall
publish a notice to that effect in the IPO Gazette.
a. Both statements are true.
b. Statement 1 is true.
c. Statement 2 is true.
 d. Both statements are false.

14. Any interested person may, upon payment of the required fee, petition to cancel the
patent or any claim thereof, or parts of the claim, on any of the following grounds
except?
a. The patent was used by another person to commit a crime
b. The patent is contrary to public order or morality
c. What is claimed as the invention is not new or patentable
d. The patent does not disclose the invention in a manner sufficiently clear and complete
for it to be carried out by any person skilled in the art

15. All of the following are valid reasons to request for changes in a patent except
a. Limit the extent of the protection conferred by it
b. Correct obvious mistakes or to correct clerical errors
c. Result in the disclosure contained in the patent going beyond the disclosure contained
in the application filed
d. Correct mistakes or errors, other than those referred to in letter (b), made in good
faith

16. Statement 1: A patent application, which has not yet been published, and all related
documents, can be inspected without the consent of the applicant.
Statement 2: The Director General subject to the approval of the Secretary of
Science and Technology, may prohibit or restrict the publication of an application,
if in his opinion, to do so would be prejudicial to the national security and interests
of the Republic of the Philippines.
a. Both statements are true.
b. Statement 1 is true.
c. Statement 2 is true.
d. Both statements are false.

17. This bureau is responsible for providing technical, advisory, and other services
relating to the licensing and promotion of technology, and carrying out an efficient
and effective program for technology transfer.
a. Management Information Services and EDP Bureau
b. Administrative, Financial and Human Resource Development Service Bureau
c. Documentation, Information and Technology Transfer Bureau
d. Bureau of Legal Affairs

18. The date of filing of the foreign application for the same invention in another
country which by treaty, convention, or law affords similar privileges to Filipino
citizens
a. Date of application
b. Priority date
 c. Filing date
d. Foreign application date

19. A patent will be invalid for lack of novelty if:

a. Products falling within the claim were sold to the public before the priority date
b. The process claimed was carried on commercially before the priority date
c. A description of the product (in the case of a product claim) was published before the
priority date
d. A video describing how to make the product claimed was published on the internet
prior to the priority date
20. You can infringe a patent by:
e. Making a product for your own personal use
f. Making different products to the invention in order to research their technical
effectiveness
g. Selling the main components of the product, together with instructions how to
assemble it using commonly available fastening components such as nuts, bolts,
cable-ties and so on
h. Publishing drawings of the product on your website

21. Means any visible sign capable of distinguishing the goods or services of an enterprise
and shall include a stamped or marked container of goods.
a. Sign
b. Symbol
c. Mark
d. Brand

22. Performers shall enjoy the following exclusive rights as regards their performances:

a. The right of authorizing the broadcasting and other communication to the public of their
performance.

b. The right of authorizing the fixation of their unfixed performance.

c. All of the above.

d. None of the above.

23. Broadcasting organization shall include a foreign person or a juridical entity duly
authorized to engage in broadcasting.

a. True
b. False

24. Means the name or designation identifying or distinguishing an enterprise.

a. business name

b. trade name

c. brand name

d. registered name

25. The copyright owner may elect, at any time before final judgment is rendered, to
recover instead of actual damages and profits, an award of statutory damages for all
infringements involved in an action in a sum equivalent to the filing fee of the infringement
action but not less than:

a. Php5,000.00

b. Php50,000.00

c. Php500,000.00

d. Php5,000,000,000

26. The fair use of a copyrighted work for criticism, comment, news reporting, teaching
including limited number of copies for classroom use, scholarship, research, and similar
purposes is an infringement of copyright.

a. True

b. False

27. Works are protected by the fact of their creation, respective of their mode or form of
expression, as well as of their content, quality and purpose.

a. True

b. False

28. Copyright or economic rights shall consist of the exclusive right to carry out, authorize
or prevent the following acts:

a. Reproduction of the work or substantial portion of the work.

b. Public performance of the work.

c. The first public distribution of the original and each copy of the work by sale or other forms of
transfer of ownership.

d. All of the above.

29. Means any visible sign designated as such in the application for registration and
capable of distinguishing the origin or any other common characteristic, including the
quality of goods or services of different enterprises which use the sign under the control of
the registered owner.

a. protective mark

b. business mark

c. collective mark

d. designated mark

30. A mark can be registered if it:

a. Consists of immoral, deceptive or scandalous matter, or matter which may disparage or falsely
suggest a connection with persons, living or dead, institutions, beliefs, or national symbols, or
bring them into contempt or disrepute;

b. Consists of the flag or coat of arms or other insignia of the Philippines or any of its political
subdivisions, or of any foreign nation, or any simulation thereof;

c. Is not identical with a registered mark belonging to a different proprietor or a mark with an
earlier filing or priority date, in respect of the same goods or services, or closely related goods or
services, or if it nearly resembles such a mark as to be likely to deceive or cause confusion.

d. None of the above.

31. The application for the registration of the mark shall be in Filipino or in English and
shall contain the following except:

a. A request for registration.

b. The name and address of the applicant.

c. One or more reproductions of the mark.

d. A signature by, or other self-identification of, the applicant only.

32. Means any communication to the public, including broadcasting, rebroadcasting,

retransmitting by cable, broadcasting and retransmitting by satellite, and includes the
making of a work available to the public by wire or wireless means in such a way that
members of the public may access these works from a place and time individually chosen
by them.

a. Communication to the public

b. Information to the public

c. Reaching out to the public

d. Coverage to the public

33. Is the making of one or more copies, temporary or permanent, in whole or in part, of a
work or a sound recording in any manner or form.

a. Recreation

b. Reproduction

c. Republication

d. Repetition

34. The copyright may be assigned or licensed only as a whole.

a. True

b. False

35. Any library or archive whose activities are for profit may, without the authorization of
the author or copyright owner, make a limited number of copies of the work, as may be
necessary for such institutions to fulfill their mandate, by reprographic reproduction.

a. True

b. False

36. The author of a work shall have the right:

a. To require that the authorship of the works be attributed to him, in particular, the right that his
name, as far as practicable, be indicated in a prominent way on the copies, and in connection
with the public use of his work.

b. To make any alterations of his work prior to, or to withhold it from publication.
c. To object to any distortion, mutilation or other modification of, or other derogatory action in
relation to, his work which would be prejudicial to his honor or reputation.

d. All of the above.

37. The rights of an author shall not be assignable or subject to license and last during:

a. The lifetime of the author and for fifty (50) years after his death.

b. The lifetime of the author and for sixty (60) years after his death.

c. The lifetime of the author and for seventy (70) years after his death.

d. The lifetime of the author and in perpetuity after his death.

38. Literary and artistic works includes the following except:

a. Books, pamphlets, articles and other writings.

b. Periodicals and newspapers.

c. Computer programs.

d. None of the above.

39. No copyright shall subsist in any work of the Government of the Philippines.

a. True but prior approval of the government agency or office wherein the work is created shall
be necessary for exploitation of such work for profit.

b. True and prior approval of the government agency or office wherein the work is created is not
necessary for exploitation of such work for profit.

c. False. Copyright shall subsist in any work of the Government of the Philippines and prior
approval of the government agency or office wherein the work is created is necessary for
exploitation of such work for profit.

d. False. Copyright shall subsist in any work of the Government of the Philippines but prior
approval of the government agency or office wherein the work is created can suffice for
exploitation of such work for profit.

40. In the case of work created by an author during and in the course of his employment,
the copyright shall belong to:

a. The employer, if the creation of the object of copyright is not a part of his regular duties even
if the employee uses the time, facilities and materials of the employer.
b. The employee, if the work is the result of the performance of his regularly-assigned duties,
unless there is an agreement, express or implied, to the contrary.

c. The employee, if the creation of the object of copyright is not a part of his regular duties even
if the employee uses the time, facilities and materials of the employer.

d. Both the employer and the employee, if the work is the result of the performance of his
regularly-assigned duties, unless there is an agreement, express or implied, to the contrary.
1. What is PDIC’s maximum deposit insurance coverage?
a. 1,000,000
b. 500,000
c. 1,500,000
2. Enumerate the three functions of PDIC.
 Deposit Insurer
 Co-regulator of Banks
 Receiver and Liquidator of Closed Banks
3. The following are excluded from deposit insurance coverage as stipulated in R.A. No. 9576,
except
a. Deposits of all commercial banks, savings and mortgage banks, rural banks, private
development banks, cooperative banks, savings and loan associations
b. Deposit accounts which are unfunded, fictitious or fraudulent
c. Deposit products constituting or emanating from unsafe and unsound banking practices
d. Deposits that are determined to be proceeds of an unlawful activity as defined under
the Anti-Money Laundering Law.
4. Statement 1: Deposits in different branches of the same bank added together when determining
deposit insurance coverage
Statement 2: Deposits in different banking institutions are added together for the purpose of
P500,000 maximum
a. Both statements are true
b. Both statements are false
c. Only Statement 1 is true
d. Only Statement 2 is true
5. How long can the depositor of the closed insured bank file his claim with PDIC?
a. 6 months
b. 12 months
c. 24 months
d. 48 months
6. Statement 1: Membership of banks to PDIC is mandatory; hence, all operating banks are
members of PDIC.
Statement 2: The PDIC is an attached agency of the Department of Finance.
a. Both statements are true
b. Both statements are false
c. Only Statement 1 is true
d. Only Statement 2 is true
7. What specific risks to a bank does PDIC cover?
a. Bank losses due to fire
b. Revolution or Civil War
c. Closure by strike or public disorder
d. Bank closure ordered by the Monetary Board
8. Statement 1: Joint accounts held in the names of a juridical entity and a natural person shall be
presumed to belong solely to the natural person.
Statement 2: PDIC is a government instrumentality created in 1963 by virtue of RA 3591.
 a. Both statements are true
b. Both statements are false
c. Only Statement 1 is true
d. Only Statement 2 is true
9. Deposits in which of the following banks are insured by the PDIC?
I. Commercial banks
II. Savings and mortgage banks
III. Domestic branches of foreign banks
IV. Cooperative banks
V. Savings and loan associations
a. I, III, V only
b. I, II, IV, V only
c. I, II, III, IV, and V
d. I, II, III, IV only
10. The powers and functions of the Corporation shall be vested in and exercised by a Board of
Directors which shall be composed of seven (7) members as follows:
 The Secretary of Finance who shall be the ex officio Chairman of the Board without
Compensation
 The Governor of the Bangko Sentral ng Pilipinas who shall ex officio member of the
Board without compensation
 The President of the Corporation who shall serve as the Vice Chairman of the Board
 Four (4) members from the private sector to be appointed by the President of the
Philippines

1. The PDIC shall not pay deposit insurance for the following accounts or transactions, except for:
A. Deposit accounts which are unfunded, fictitious or fraudulent
B. Deposit products constituting or emanating from unsafe and unsound banking practices
C. Deposit accounts that resulted from splitting of deposits
D. Foreign currency deposits
Answer: D

2. Statement I: A joint account shall be insured separately from any individually-owned deposit
account.
Statement II: Membership of banks to PDIC is mandatory; hence, all operating banks are
members of PDIC.
A. False, True
B. True, False
C. Both are False
D. Both are True
Answer: D

3. What is PDIC’s maximum deposit insurance coverage?

A. P150,000
 B. P1,000,000
C. P500,000
D. P250,000
Answer: C

4. The amount due to any depositor for deposits in an insured bank net of any obligation of the
depositor to the insured bank as of the date of closure, but not to exceed the Maximum Deposit
Insurance Coverage.
A. Insured deposit
B. Deposit
C. Transfer deposit
D. Trust fund
Answer: A

5. The unpaid balance of money or its equivalent received by a bank in the usual course of
business and for which it has given or is obliged to give credit to a commercial, checking,
savings, time or thrift account
A. Insured deposit
B. Deposit
C. Transfer deposit
D. Trust fund
Answer: B

6. This refers to the possibility that failure of one bank to settle net transactions with other banks
will trigger a chain reaction, depriving other banks of funds leading to a general shutdown of
normal clearing and settlement activity.
A. Assumption of risk
B. Systemic risk
C. Clearing risk
D. Transaction risk
Answer: B

7. How many months does the depositor of closed bank can file his deposit insurance claim from
date of bank takeover?
A. 6
B. 12
C. 16
D. 24
Answer: D

8. This is the stage within which the PDIC manages the affairs of the closed bank and preserves its
assets for the benefit of creditors.
A. Receivership
B. Liquidation
C. Examination
 D. Rehabilitation
Answer: A

9. This refers to the recovery and conversion of assets into cash for distribution to all creditors in
accordance with the order of creditor preference pursuant to law.
A. Receivership
B. Liquidation
C. Examination
D. Rehabilitation
Answer: B

10. Which of the following is insured by PDIC?

A. Savings deposit
B. Demand draft
C. Telegraphic notes
D. Telegram notes
Answer: A

OTHER BANKING LAWS

1. What is the punishment for the violation of the RA 1405 – Secrecy of Bank Deposits?
a. Imprisonment of not more than 5 years
b. Fine of not more than Php 20,000.00
c. Both
d. None of the above

2. The unclaimed balances includes credits or deposits of:

I. Money
II. Bullion
III. Security
IV. Other Evidence of Indebtness

a. I, II, IV
b. I, II, III
c. II, III, IV
d. I, II, III, IV

3. Unclaimed balances shall be forwarded with a statement under oath showing the:
a. The names and last known place of residence or post-office addresses of the persons in
whose favor such unclaimed balances stand
b. The date when the person in whose favor the unclaimed balance stands died, if known, or
the date when he made his last deposit or withdrawal
c. The interest due on such unclaimed balance, if any, and the amount thereof
d. All of the above
4.
I. The Insular Treasurer shall publish the statement once a week for 3 consecutive weeks in
at least 2 newspapers of general circulation in the locality where the bank or banks are
situated, if there be any, and if there is none, in the City of Manila, one in English and one
in Spanish
II. The publication cost shall be paid by the Treasury Bureau and the later shall be
reimbursed in the escheated fund.

a. Statement I is true, Statement II is false

b. Statement I is false, Statement II is true
c. Both statements are true
d. Both statements are false

5. Complaint about the claiming of interest in any deposit, and requiring them to appear with ____
days after the first publication of such summons and show cause, if any, why the credit or deposits
involved should not be deposited with the insular treasurer; and notifying them that if they do not
appear and show cause, the Government of the Philippine Islands will apply to the court for the
relief demanded in the complaint
a. 50 days
b. 60 days
c. 70 days
d. 80 days

6. It means any individual, corporation, partnership, association, or other organized group of persons,
or the legal successor or representative of the foregoing, and includes the Philippine Government or
any agency thereof, or any other government, or any of its political subdivisions, or any agency of the
foregoing.
a. People
b. Person
c. Individual
d. Being

7. Composition of credit
a. Loans, mortgage, deed of trust, advance, or discount
b. Rental-purchase contract
c. Conditional sales contract
d. All of the above

8. What is the amount of maximum deposit insurance coverage to be paid by the Corporation?
 a. Php 500,000.00
b. Php 1,000,000.00
c. Php 1,500,000.00
d. Php 2,000,000.00

9.
I. The Corporation determines the interest rates, maturity and other requirements of said
obligation.
II. The Board of Directors provide for the appropriate reserves for the redemption or
retirement of said obligation.
a. Statement I is correct
b. Statement II is incorrect
c. Both statements are correct
d. Both statements are incorrect

10. This is created to oversee the implementation of RA 9576 – Maximum Deposit Insurance Coverage
Act.
a. Joint Senatorial Oversight Committee
b. Joint Congressional Oversight Organization
c. Joint Senatorial Oversight Organization
d. Joint Congressional Oversight Committee

11.
I. Trust accounts are covered by bank secrecy laws.
II. Investments in government bonds are covered by bank secrecy laws.
a. Statement I is correct
b. Statement II is incorrect
c. Both statements are correct
d. Both statements are incorrect

12. This refer to money or funds placed with a bank that can be withdrawn on the depositor’s order or
demand.
a. DOSRI Accounts
b. Deposits
c. Unclaimed Balances
d. Withdrawals

13.
I. Deposits are characterized as being in the nature of a simple loan.
II. The placing of deposits in a bank creates a creditor-debtor relationship between the
depositor and the bank.
 a. Statement I is correct
b. Statement II is incorrect
c. Both statements are correct
d. Both statements are incorrect

14. Which of the following is not an exception to the secrecy of bank deposits?
a. Impeachment cases of members of the Supreme Court
b. Cases of bribery or dereliction of duty of public officials
c. Crime of theft where it is unknown where the funds were deposited
d. Examination made by an independent auditor hired by the bank to conduct its regular audit

15. These are debt securities which are unconditional obligations of the State, and backed by its full
taxing power. These include treasury bills, treasury notes, retail treasury bonds, dollar linked peso
notes, and other risk free bonds.
a. Investments in Trust
b. Investments in Stocks
c. Investments in Exchange Traded Funds
d. Investments in Government Bonds

16. In order for a deposit to be considered as covered by the Act 3936, the person must be known to be
dead or has not made further deposits or withdrawals for a period of:
a. At least 2 years
b. At least 4 years
c. At least 10 years
d. At least 12 years

17. The authority to reactivate on unclaimed balance account/s with aggregate amount not exceeding
P100,000 shall be issued by:
a. Head Law & Litigation Division Legal Service
b. Chairman of Commission on Audit
c. Deputy Treasurer of the Philippines
d. Treasurer of the Philippines

Enumeration

18. Deposits exempt from garnishment (2)

1. Foreign Currency Deposits, Section 8 of RA 8426 (except for transient foreigners)

2. Those exempt under Rules of Court
19. All banks shall forward to the Treasurer of the Philippines the existence of unclaimed balances of
any person known to be dead, or who has not made further deposits or withdrawals during the
preceding 10 years or more, through a sworn statement.
List all the information required in the Sworn Statement (4).

1. The names and last known place of residence or post office addresses of the persons in whose
favor such unclaimed balances stand;
2. The amount and the date of the outstanding unclaimed balance and whether the same is in
money or in security, and if the latter, the nature of the same;
3. The date when the person in whose favor the unclaimed balance stands died, if known, or the
date when he made his last deposit or withdrawal; and
4. The interest due on such unclaimed balance, if any, and the amount thereof.

20. The approving authority for the reactivation of unclaimed balance account/s (4)

1. Division Chief/Head Law & Litigation Division Legal Service

2. Director, Legal Service
3. Deputy Treasurer of the Philippines
Treasurer of the Philippines
PDIC (RA 3591, As Amended)

QUESTIONNAIRE

Atizado, Pouline Kate B.

Conde, Marynhel S.

Lalim, Arvin Stephen S.

Mora, Frances Joyce M.

Ogerio, Jude Davidson R.

Priolo, Kyle Ivy A.

Sajonia, Mei – Jie Pearl V.

Sese, Steffanie Rhysse D.

Tatel, Yvette C.
T/F

1. Solicitation and acceptance of deposits outside bank premises, including branches,

without BSP authority, is allowed and considered under normal business operations
of PDIC. F
2. PDIC shall not pay deposit insurance on investment products such as bonds and
securities, trust accounts and other similar instruments. T
3. Splitting of deposit is considered a criminal act punishable by imprisonment of not
less than 6 years but not more than 12 years or a fine not less than P50,000 but not
more than P10,000,000, or both. T
4. A depositor can still have a claim of insured deposit against PDIC after 3 years from
the date of bank takeover. F
5. A P500,000 entitlements to joint deposits is separate from the P500,000 applicable to
the individual owned accounts. T
6. Depositors with valid deposit accounts with balance of P100,000 and below are still
required to file claims provided that they have outstanding obligations with the
closed bank. T
7. Payment of insured deposit can be done by transferring the deposit in another
insured bank. T
8. PDIC may require proof of claims to be filed before paying the insured deposits. T
9. Splitting of deposit is a legal way to maximize the deposit insurance that can be
claimed by a depositor. F
10. The maximum deposit insurance per bank is P500,000 and there can be no
adjustments to the maximum deposit insurance. F

Multiple Choice Questions

1. Mr. A has a deposit of P250,000 in Bangko Bank. However, PDIC terminated the
insured status of the bank because of unsafe and unsound banking practices. Mr. A
only got notified after a year of the termination of insured status. Is the deposit of Mr.
A still insured by PDIC?
 a. Yes, because PDIC insures the deposit in banks that have a terminated
insured status up to 3 years.
b. No. The deposit is not insured the moment PDIC terminate the insured status
of the bank.
c. Yes. The deposit of Mr. A shall be insured until the bank is liquidated.
d. No. The deposit shall continue to be insured for a period of only 180 days.

2. Suppose PDIC did not terminate the insured status of Bangko Bank. What is the
maximum insured deposit of Mr. A?
a. P500,000
b. P375,000
c. P250,000
d. P100,000

3. Which of the following are considered as insured deposits?

I. Negotiable Order of Withdrawal
II. Foreign Currency Deposit
III. Special Savings

a. I and III only

b. I, II and III
c. I and II only
d. II and III only

4. This refers to the possibility of failure of one bank to settle net transactions with other
banks will trigger a chain reaction, depriving other banks of funds leading to a
general shutdown of normal and clearing and settlement activity.
a. System collapse
b. Economic shutdown
c. Systemic risk
d. Economic risk
5. Childe have the following deposits in Northland Bank with account names:
I. Childe and Lumine with a balance of P500,000
II. Childe or Morax with a balance of P800,000

How much is the insured deposit of Childe?

a. P500,000 (Used all P500,000 on 1st account)

b. P500,000 (375,000 on 1st account and 125,000 on 2nd account)
c. P500,000 (250,000 on 1st account and P250,000 on 2nd account)
d. P500,000 (Used all P500,000 on 2nd account)

6. Statement 1: Depositors who maintain their account under the name of business
entities with a savings account and with a balance of more than 100,000 only are
required to file claims.

Statement 2: Depositors who have outstanding obligations of more than 100,000 are
the only one who are required to file claims.

Which of the statements are true?

a. Statement 1 only
b. Statement 2 only
c. All statements are true
d. All statements are false

7. Statement 1: PDIC shall publish the notice of closed bank once a week for at least 5
consecutive weeks in a newspaper of general circulation or newspaper circulated
in the community where the closed bank or its branches are located.

Statement 2: PDIC shall commence the determination of insured deposits due the
depositors of a closed bank upon its actual takeover of the closed bank.

Which of the statements are false?

a. Statement 1 only
 b. Statement 2 only
c. All statements are true
d. All statements are false
8. Benny maintains P500,000 in the Northland Bank. In the event of a closure of
Northland bank, Benny shall file his claim within:
a. the month of actual closure of bank
b. 1 year from actual takeover of the closed bank
c. the month from actual takeover of the closed bank
d. 2 years from actual takeover of the closed bank

9. Statement 1: Deposits payable in a place outside the Philippines are insured under
the PDIC and is entitled for payment.

Statement 2: Deposits which are unfunded and that are fictitious or fraudulent are
insured under the PDIC and ins entitled for payment.

Which of the statements are false?

a. Statement 1 only
b. Statement 2 only
c. All statements are true
d. All statements are false
10. Kaeya had the following deposits with Northland bank:
I. Checking account – Kaeya – P50,000
II. Time Deposit – Kaeya ITF Diluc – P100,000
III. Savings – Childe FAO Kaeya – P20,000
IV. Savings – Kaeya and Rosaria – P15,000
V. Checking account – Kaeya by Wagner – P5,000
How much is Kaeya’s insured deposit?
a. 50,000
b. 82,500
c. 157,500
d. 57,500
 Polytechnic University of the Philippines
Sta. Mesa, Manila

PHILIPPINE DEPOSIT
INSURANCE
CORPORATION

Submitted by:

Comiso, Jrcrisher C. Mercader, Leonardo A.

De Castro, Shenna B. Rada, Lorenz Vencent

Evangelista, Christine Joy P. Sebastian, Ira Mariz S.

Ignacio, Mary Joyce L.

Submitted to:

Atty. Paul Ruiz Braga

LAW 20033

Regulatory Framework and Legal Issues in Business

MULTIPLE CHOICES & IDENTIFICATION:

1. This Republic Act establishes the Philippine Deposit Insurance Corporation

a. RA No. 3159 c. RA No. 3591
b. RA No. 3195 d. RA No. 3595

2. The board of Directors of the “Corporation” shall be composed of _____ members.

a. 7 c. 3
b. 6 d. 4

3. The Republic act concerning insurance deposits hereby established a body referred to
as the ______ which shall insure the deposits of all banks which are titled to the
benefits of insurance under the said Act.
a. Insurance Bank c. Corporation
b. Philippine Deposit Insurance d. None of the above
Corporation

4. Board of Directors: Composition and Authority is in what section of R.A 3591

a. Section 3 c. Section 3A
b. Section 4 d. Section 3B

5. The Secretary of Finance as the chairman of the board shall have no compensation
a. True b. False

6. All Ex Officio board members shall serve without compensation as to their servitude in
the corporation
a. True b. False
7. The President of the Corporation shall serve on a either full-time or part time basis for 6
years depending on his/her capabilities.
a. True b. False

8. When a vacancy is filled the term shall hereby be renewed as a whole new term for the
new board member.
a. True b. False

9. The composition of members of the Board of Directors of the Corporation are as follows:
a. 7 members; 1 President, 2 Ex Officio, 4 members
b. 7 members; 1 President, 2 Ex Officio, 4 members of the private sector
c. 7 members; 1 President, 1 Secretary, 1 Governor, 4 members from private
company
d. 7 members; 1 President, 2 Ex Officio, 4 members from private organization

10. The shortlist of candidates for President of the Corporation is prepared by Governance
commission for GOOC pursuant to______.
a. R.A No. 10846 c. R.A No. 10149
b. R.A No. 9302 d. R.A No. 10169

11. The President of the Corporation shall also be the Vice Chairman of the Board
a. True b. False

12. The Secretary of Finance as an ex officio member shall also be the secretary of the
Board of Directors of the Corporation.
a. True b. False

13. The Corporation being an instrument of the government shall have no fiscal and
administrative authority.
 a. True b. False

14. As per amendment by R.A No. 9302, the section 2 of R.A 3591 shall read as:
a. The powers and functions of the Corporation shall be vested in, and exercised by
a Board of Directors which shall be composed of five (5) members
b. The powers and functions of the Corporation shall be vested in, and
exercised by a Board of Directors which shall be composed of seven (7)
members
c. No amendment for this paragraph
d. None of the above

15. The President of the Corporation as amended by R.A 9302 shall be appointed by the
President of the Philippines
a. From the Government Sector c. Either A or B
b. From the Private Sector d. Both A and B

16. The salary of the other members of the board shall be fixed by the President of The
Philippines and the government.
a. True b. False

17. The board of members are allowed to review and revise Corporate Structure and
organizational set-up of the Corporation when believed to be necessary to undertake it
function.
a. True b. False

18. It pertains to movable, immovable, tangible or intangible resources or properties over

which a bank has an established or equitable interest, including the proceeds of the sale
of its bank and branch licenses subject to the approval of the BSP.
a. Liability c. Equity
b. Asset d. Expense
19. It refers to the plan of distribution of the assets of a closed bank to its creditors, based on
its estimated realizable value as of a certain cut-off date, prepared in accordance with
the Rules on Concurrence and Preference of Credits under the Civil Code or other laws.
a. Liability Distribution Plan c. Asset Distribution Plan
b. Equity Distribution Plan d. Expense Distribution Plan

20. An asset distribution plan may be partial when it pertains to:

a. The distribution of a portion or some of the assets of the closed bank
b. The distribution of all the assets of the closed bank
c. The distribution of half of the assets of the closed bank
d. Not stated

21. An asset distribution plan may be final when it pertains to:

a. The distribution of a portion or some of the assets of the closed bank
b. The distribution of all the assets of the closed bank
c. The distribution of half of the assets of the closed bank
d. Not stated

22. The term Board of Directors as used in PDIC law means:

a. Board of Directors of the Partnership
b. Board of Members of the Partnership
c. Board of Members of the Corporation
d. Board of Directors of the Corporation

23. Statement I: The term bank and banking institution shall be synonymous and non-
interchangeable.
Statement II: The term banking institution shall include banks, commercial banks,
savings banks, mortgage banks, rural banks, development banks, cooperative banks,
stock savings and loan associations and branches and agencies in the Philippines of
 foreign banks and all other corporations authorized to perform banking functions in the
country.
a. Both statements are TRUE c. Only Statement II is TRUE
b. Only Statement I is TRUE d. Both statements are FALSE

24. It refers to a bank placed under liquidation by the Monetary Board.

a. Commercial bank c. Savings bank
b. Closed bank d. Rural bank

25. The Corporation shall not pay deposit insurance for the following accounts or
transactions, EXCEPT:
a. Investment products such as bonds and securities, trust accounts, and other
similar instruments.
b. Deposit accounts or transactions which are fictitious or fraudulent as determined
by the Corporation.
c. Deposit accounts or transactions constituting, and/or emanating from, unsafe and
unsound banking practice/s, as determined by the Corporation, in consultation
with the BSP, after due notice and hearing, and publication of a directive to
cease and desist issued by the Corporation against such deposit accounts,
transactions or practices.
d. Deposits that are determined to be the proceeds of a lawful activity as
defined under R.A. No. 9160, as amended.

26. Statement l: The actions of the Corporation taken under Section 5(g) shall be final and
executory, and may only be restrained or set aside by the Court of Appeals, upon
appropriate petition for certiorari on the ground that the action was taken in excess of
jurisdiction or with such grave abuse of discretion as to amount to a lack or excess of
jurisdiction.
Statement ll: The petition for the certiorari may only be filed within thirty (30) days from
notice of denial of claim for deposit insurance.
 a. Both statements are TRUE c. Only Statement II is TRUE
b. Only Statement I is TRUE d. Both statements are FALSE

27. The actions undertaken by the Corporation under Section 11 of PDIC Act are created to:
a. Protect depositors, creditors and the DIF.
b. Safeguard the continuity of essential banking services or maintain financial
stability.
c. Prevent deterioration or dissipation of bank assets.
d. All of the above

28. It pertains to a method for calculating an insured bank's assessment on the probability
that the DIF will incur a loss with respect to the bank, and the likely amount of any such
loss.
a. Risk-based assessment system
b. Risk-based management system
c. Risk-based identification system
d. None of the above

29. Statement of Affairs includes:

a. Estimated realizable value of assets
b. Classification of credits
c. Estimated liabilities to be settled
d. All of the above

30. What are the factors to conduct evaluations?

a. Fair market value of the assets and liabilities of a bank
b. Risk classification of a bank
c. Possible resolution modes under Sec. 11, subject to such terms and condition as
the PDIC Board may prescribe
d. All of the above
31. Which of the following is not a power of a Corporation as a corporate body?
a. To appoint by its Board of Directors such officers and employees as are not
otherwise provided for in this Act to define their duties, fix their compensation,
require bonds of them and fix penalty thereof and to dismiss such officers and
employees for cause.
b. To determine the inappropriate resolution method and to implement the
same for a bank subject of resolution.
c. To determine qualified interested acquirers or investors for any modes of
resolution or liquidation of banks.
d. To exercise by its Board of Directors, or duly authorized officers or agents, all
powers specifically granted by the provisions of this Act, and such incidental
powers as shall be necessary to carry on the powers so granted.

32. The Corporation may terminate the insured status of any bank that fails or refuses to
comply, within how many days from notice, with any cease-and-desist order issued by
the Corporation or with any corrective action imposed by the Monetary Board.
a. 15 days c. 25 days
b. 20 days d. 30 days

33. Statement I: The Corporation may establish its own provident fund which shall consist
of contributions made both by the Corporation and by its officers and employees to a
common fund for the payment of benefits to such officers or employees of their heirs.
Statement II: The deposits of each depositor in the bank on the effective date of the
termination of insurance coverage, less all subsequent withdrawals, shall continue to be
insured up to the maximum deposit insurance coverage for a period of one hundred
eighty (180) days
a. Statement I is TRUE c. Both Statement are TRUE
b. Only Statement II is TRUE d. Both statements are FALSE

34. The Board of Directors may thereafter issue a cease and desist order, and require the
bank or its directors or agents concerned to correct the practices or violation within how
many days.
 a. 30 days c. 40 days
b. 35 days d. 45 days

35. Additions to, or renewal of, existing deposits and new deposits in such bank after the
effective date of termination of insured status of the bank shall be insured by the
Corporation.
a. True b. False

36. Personnel of the Corporation are hereby prohibited from all of the following, except:
a. Being an officer, director, consultant, employee or stockholder, directly or
indirectly, of any bank or banking institution except as otherwise provided in the
Act.
b. Receiving any gift or thing of value from any officer, director or employee thereof.
c. Revealing in any manner, except as provided in this Act or under of the court,
information relating to the condition or business of any such institution. This
prohibition shall not apply to the giving of information to the Board of Directors,
the President of the Corporation, Congress, any agency of government
authorized by law, or to any person authorized by either of them in writing to
receive such information
d. None of the above.

37. Failure to publish the required report shall be subject to a penalty of not more than
______.
a. Php 10,000.00 c. Php 30,000.00
b. Php 20,000.00 d. Php 50,000.00

38. Which Section of the Republic Act No. 3591 tackles the powers and responsibilities and
prohibitions in establishing the Philippine Deposit Insurance Corporation?
a. Section 6 c. Section 21
b. Section 10 d. Section 17
39. Who shall administer the affairs of the Corporation fairly and impartially and without
discrimination?
a. Shareholders c. Auditor
b. Chief Accountant d. Board of Directors

40. All of the following are powers appointed by the Board of Directors of the Corporation to
the investigators except:
a. Conduct investigations on frauds, irregularities and anomalies committed in
banks
b. Administer oaths
c. Consolidate and analyze financial statements
d. Preserve the testimony of any person relating to the subject of investigation

41. In compliance with keeping and maintaining a true and accurate record, shall be duly
certified by:
a. President of the bank c. Both a and b
b. Compliance officer d. None of the above

42. Who is authorized to adopt and implement without the need of consent of the
stockholders, board of directors, creditors of the closed banks?
a. Payer c. Government
b. Receiver or Corporation d. Bank

43. What can be converted to cash or other forms of liquid assets?

a. Liquidation of the closed bank
b. Liabilities of the closed bank
c. Assets of the closed bank
d. Expenses of the closed bank

44. The receiver can bring what to enforce liability of the directors, officers, employees,
agents of the closed banks and other entities related or connected to the closed bank.
 a. Asset c. People
b. Suits d. Appointment

45. When the receiver distributes the available assets of the closed bank, what rule it should
be in accordance with?
a. Rule on excepting action pending for or against bank.
b. Rule on concurrence and preference of the credits under the civil code or
other laws.
c. Rule on final decision against the closed bank
d. Rule on placement of the bank under liquidation.

46. Who are the people that are not subjected any action, claim or demand in connection
with the exercise of their power and function and shall have no liability?
a. The corporation, the buyer and assistants
b. The employee and the buyer
c. The officers, employees, deputies, assistants and agents
d. The government

47. Under what effect is this: upon placement by the monetary board of a bank under
liquidation, it shall continue as a body of corporate until the termination of the winding-up
period.
a. On the Assets
b. On the corporate franchise or existent
c. On the powers, functions of its directors, officers, and stockholders
d. On labor relation

48. Under what effect is this: the powers, voting rights, functions and duties as well as the
allowances, remuneration and prerequisites of the directors, officers and stockholders of
such bank are terminated upon its closure.
a. On the Assets
 b. On the corporate franchise or existent
c. On the powers, functions of its directors, officers, and stockholders
d. On labor relation

49. Under what effect is this: all of the assets of the closed bank shall be deemed in
Custodia Legis in the hands of the receiver and such, these assets may not be subject to
attachment, garnishment, execution, levy or any other court processes.
a. On the Assets
b. On the corporate franchise or existent
c. On the powers, functions of its directors, officers, and stockholders
d. On labor relation

50. Under what effect is this: The execution and enforcement of a final decision of a court
other than the liquidation court against the assets of a closed bank shall be stayed:
a. On the powers, functions of its directors, officers, and stockholders
b. On the corporate franchise or existent
c. Final decision against the closed bank
d. Docket and other court fees

51. At the time of the closure, all of the bank’s assets, records, and documents in the
possession of the closed bank are presumed held by whom?
a. Bank c. Supplier
b. Employer d. Commission on Audit

52. Illegal assistance shall include the grant or advance reasonable legal fees as determined
by Board of Directors to enable the concerned director, officer, employee or agent to
engage counsel of his choice, subject to approval by the Board of Directors.
a. True b. False
53. Choose which statement/s is/are true.
i. Borrowing from any bank or banking institution by examiners and other personnel of
the examination departments of the Corporation shall not be prohibited only with respect
to the particular institution in which they are assigned.
ii. Personnel of other departments, offices, or units of the Corporation shall likewise be
prohibited from borrowing from any bank or banking institution during the period of time
that a transaction of such institution with the Corporation is being evaluated, processed
or acted upon by such personnel.
iii. Borrowing by all part-time personnel of the Corporation from any bank or banking
institution shall be secured and disclosed to the Board and shall be subject to such
further rules and regulations as the Board may prescribe.
a. I only c. I, II and III
b. II only d. I and III

54. The corporation may be able to pay for the reasonable cost and expenses for the
preservation of the assets and liquidation if the bank has insufficient funds.
a. True b. False

55. The assets and documents of the closed bank shall not retain their private nature even if
administered by the receiver.
a. True b. False

56. The corporation as a receiver of a closed bank is empowered to hire or retain private
counsel as may be necessary.
a. True b. False

57. The corporation as a receiver of a closed bank is empowered to hire or appoint a person
or entity of recognized competence in banking, finance, asset management or remedial
management, as its deputies, assistant or agents to perform such powers and functions
of the corporation as receiver of the closed bank or assist in performance thereof.
a. True b. False
58. Who may commence the resolution of a bank under Section 11 of RA No. 3591?
a. The Corporation in coordination with the Bangko Sentral ng Pilipinas.
b. The Corporation in coordination with the Bureau of Treasury
c. The Corporation in coordination with the Commission on Audit
d. The Corporation in coordination with the Department of Budget and Management

59. Can the Corporation disclose information obtained under this section to any person,
government official, bureau or office?
a. Yes b. No

60. The Board of Directors shall prepare and issue _______ as it may deem necessary to
make effective the establishment and operation of the fund.
Answer: Rules and Regulations

61. Should the receiver be able to dispose records of the closed banks that are no longer
needed in the liquidation, these guidelines are set by whom?
Answer: Board of Directors
62. The receiver pay accrued utilities, rentals and salaries of personnel of the closed bank
which does not exceed ___ month/s.
Answer: 3 months

63. One of the Power of a Corporation as a corporate body is to conduct examination of

banks with prior approval of the ______.
Answer: Monetary Board

64. All assessment collections and income from operations after expense and charges shall
be added to?
Answer: Deposit Insurance Fund
65. What is Act No. 3952?
Answer: Bulk Sales Law

66. How many days upon a bank’s entry into resolution may the Corporation decide on what
to do with the bank?
Answer: 180 days

67. Who prescribed the guidelines or criteria for a bank to be placed under resolution?\
Answer: Philippine Deposit Insurance Corporation (PDIC)

68. At least ___ members of the PDIC Board should affirm the process of bank resolution.
Answer: 5

69. Who shall determine the assessment rate?

Answer: Board of Directors

70. Assessment rate determined by the BOD shall not exceed?

Answer: 1/5 of 1% per annum

71. It refers to a claim or suit against the assets of a closed bank, or for specific
performance, or breach of contract, or damages, of whatever nature or character,
whether for money or otherwise, liquidated or unliquidated, fixed or contingent, matured
or current, denied by the receiver.
Answer: Disputed claim
72. This term refers to any bank which is insured in accordance with the provisions of PDIC
Act.
Answer: Insured bank

73. It refers to the amount due to any bonafide depositor for legitimate deposits in an insured
bank as of the date of closure but not to exceed P500,000.
Answer: Insured Deposit

74. It refers to the proceedings under Sections 12 to 16 of PDIC Act.

Answer: Liquidation

75. It refers to the Regional Trial Court (RTC) of general jurisdiction where the petition for
assistance in the liquidation of a closed bank is filed and given due course.
Answer: Liquidation Court

76. It refers to the payment of insured deposits.

Answer: Pay-out

77. It pertains to the petition filed by the receiver with the RTC in accordance with section 16
of PDIC Act.
Answer: Petition for assistance in the liquidation of a closed bank

78. It refers to a transaction where an insured bank purchases any or all assets and
assumes any or all liabilities of another bank under resolution or liquidation, as provided
in PDIC Act.
Answer: Purchase of assets and assumption of liabilities
79. It refers to the Corporation or any of its duly authorized agents acting as receiver of a
closed bank.
Answer: Receiver

80. It includes all documents, titles, papers and electronic data of the closed bank, including
those pertaining to deposit accounts of and with the closed bank, its assets,
transactions, and corporate affairs.
Answer: Records

81. It refers to assets, in cash or in kind, to be turned over to the closed bank's stockholders
of record, in proportion to their interest in the closed bank as of date of closure, after
payment in full of liquidation costs, fees and expenses, and the valid claims and surplus
dividends to all the creditors.
Answer: Residual Assets

82. It refers to the actions undertaken by the Corporation under Section 11 of PDIC Act.
Answer: Resolution

83. It refers to a report of financial condition of the closed bank at a given date.
Answer: Statement of Affairs

84. It refers to the remaining assets of the closed bank after satisfaction in full of all the
liquidation costs, fees and expenses, and valid claims.
Answer: Surplus Dividends

85. It refers to the act of physically taking possession and control of the premises, assets
and affairs of a closed bank for the purpose of liquidating the bank.
Answer: Takeover
86. It refers to a deposit in an insured bank made available to a depositor by the Corporation
as payment of insured deposit of such depositor in a closed bank and assumed by
another insured bank.
Answer: Transfer deposit

87. It is a fund held by an insured bank in a fiduciary capacity and includes without being
limited to, funds held as trustee, executor, administrator, guardian or agent.
Answer: Trust Fund

88. It refers to the claim recognized by the receiver or allowed by the liquidation court.
Answer: Valid Claim

89. It refers to the period provided in Section 16 of the PDIC Act.

Answer: Winding-up Period

90. Capital deficient banks can be determined by:

Answer: Bangko Sentral ng Pilipinas

91. Whenever a bank is determined to be capital deficient, PDIC may conduct an:
Answer: Insurance Risk Evaluation

92. Ensure bank compliance with the _____ and _____ prescribed by the Corporation for
the resolution of the bank.
Answer: Terms and Condition

93. Who orders the closure of a bank?

Answer: Monetary Board
94. The Corporation shall proceed with ______ and _____ after receiving the order of
closure of a bank.
Answer: Takeover and Liquidation

95. The Corporation shall have the authority to _____ and _____ the status of banks under
prompt corrective action.
Answer: Inquire and Monitor

96. Who shall inform the Corporation of the initiation of prompt corrective action on any
bank?
Answer: Bangko Sentral ng Pilipinas

97. Which of these do not constitute a bank resolution?

a. Failure of prompt corrective action as declared by the Monetary Board.
b. Request by a bank to be placed under resolution.
c. None of the above.

98. What are the powers that the Philippine Deposit Insurance Corporation does not cover?
a. Authority to collect special assessment from any bank members
b. Prescribe the terms and conditions thereof to maintain the target level of the DIF
set by the BOD
c. Conduct bank examinations and investigations to assess financial safety and
soundness of banks
d. None of the above

99. What are the expenses and charges which will be deducted to all assessment
collections and income? Multiple Answers.
a. Operating costs and expenses for the calendar year
 b. Additions to reserve to provide for insurance and financial assistance
losses, net recoverable amount from applicable assets and collaterals,
during the calendar year
c. Net insurance and financial assistance losses sustained during the
calendar year.
d. None of the above.

100. It describes an official act taken without a formal request from another party.
a. Motu Proprio c. Motu Poprio
b. Moto Proprio d. Moto Poprio

101. The following are the Power of Corporation as a Corporate body:

I. To act as sender
II. To make contracts
III. To have succession until dissolved by an Act of Congress
IV. To adopt and use a corporate seal
a. I, II, III
b. I, III, IV
c. II, III, IV
d. I, II, III, IV

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5/7/2021 PDIC Part 2

PDIC Pa 2
* Required
Custodia Legis means ______. *
1 point

Your answer
A Corporation is authorized to issue bonds, debentures, and other obligations, in local only, as
may be necessary for purposes of providing liquidity for se lement of insured deposits in closed
banks. *
1 point
True
False
Under Section 18 of PDIC, the dividend rate shall be at least ______ of the income from other
sources only. *
1 point
a. 30%
b. 40%
c. 45%
d. 50%
Upon the designation of the Board of Directors as receiver of a closed bank, it shall serve a notice
of closure to the highest-ranking o cer of the bank present in the bank premises, or in the
absence of such o cer, post the notice of closure in the bank premises, or its main entrance. *
1 point
True
False, Monetary Board
False, Assessor's Office
False, Corporation
The _____ shall have the authority to invest funds received from the conversion of the assets of
the closed bank in government securities, other government-guaranteed marketable securities or
investment-grade debt instruments. *
1 point
A. receiver
B. closed bank
C. Monetary Board
D. depositor
“The Board of Directors is hereby authorized to provide separation incentives, and all those who
shall retire or be separated from the service on the account of reorganization under the preceding
section shall be entitled to such incentives which may be in addition to all gratuities and bene ts to
which they may be entitled under existing laws”. What section of Republic Act (R.A) No. 3591 it can
be found? *
1 point

Your answer
The proceeds of the sale of the bank and branch licenses shall be for the bene t of the _____ of
the closed bank. *
1 point
A. receiver
B. depositors
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5/7/2021 PDIC Part 2

C. Board of Directors
D. creditors
The ne imposed by the Board of Directors may not exceed _________ the amount of damage or
cost caused by the violation. *
1 point
A. Twice
B. Thrice
C. 50%
D. 75%
The assets gathered by the receiver shall be evaluated and veri ed as to their existence,
ownership, condition, and other factors to determine their _____. *
1 point

Your answer
The Corporation may issue notes, debenture, bonds, or other debt instruments without the
approval of the President of the Philippines, as long as these shall not be guaranteed by the
national governments. *
1 point
True
False
Enumerate the three (3) clauses under the Sections 31-33 of the PDIC Cha er (RA 3591), and give
it's de nitions or the likes. (Use semi-colons [;]) *
1 point

Your answer
Payment of insured deposits shall be made by the Corporation by cash or making deposits
available to the board of directors and must be equal to how much the depositors' insured
deposits. *
1 point
True
False
What will happen to the Corporate Funds and assets a er it is given to the receiver? *
1 point
A. Subject to guidelines and limits as approved by the Board of Directors
B. Can be invested in debt instruments denominated in foreign currencies issued or guaranteed by the Republic of the
Philippines.
C. Authorized to open securities custodianship and settlement accounts.
D. shall be exempt from attachment, garnishment or any other order or process of any court, agency, or any other
administrative body.
E. All of the above
How many years of imprisonment is imposed upon any director, o cer, employee or agent of the
bank for violations such as refusal to submit repo s and audit of deposit records as required by
law? *
1 point
A. 10-12 years
B. 15-17 years
C. 6-12 years
D. 18-20 years

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5/7/2021 PDIC Part 2

Subrogation shall include the right of the corporation to receive the same dividends and payments
from the proceeds of the assets of the closed bank. *
1 point
True
False
When the Corporation fails to se le the claim for insured deposits, o cers or employees of the
Corporation shall be imprisoned for ______. *
1 point
a. 2-4 months
b. 5-7 months
c. 6 months to 1 year
d. 2-3 years
Modes of liquidation *
1 point
A. Conventional liquidation & purchase of assets and assumption of liabilities.
B. Convenient liquidation & purchase of assets and capital.
C. Contractual liquidation & Selling of assets and capital.
D. Contract liquidation & Selling of assets and payment of liabilities.
What cou shall issue any temporary restraining order, preliminary injuction or preliminary
mandatory injunction against the Corporation for any action under Sec. 22 by RA No. 10846? *
1 point
a. Supreme Court
b. District Court
c. Court of Appeals
d. Court of Tax Appeals
Without prior wri en consent by the Corporation, no insured bank shall *
1 point
a. merge or consolidate with any bank or institution
b. assume liability to pay any deposits made in, or similar liabilities of, any bank or institution
c. transfer assets to any bank or institution in consideration of the assumption of liabilities for any portion in the deposits
made in such insured bank
d. all of the above
Willful failure or refusal to pay assessment and interest will be imposed a penalty of twice the
amount of interest payable if the violations continue. *
1 point
True
False
Modi ed True or False The provision of Republic Act No. 8736, otherwise known as “The Securities
Regulation Act” and Supreme Cou Judicial Ma er No. 00-9-10-SC, entitled, “The Rules of
Procedure on Corporation Rehabilitation”, shall not be applicable to the petition for assistance in
the bankruptcy of the closed bank. *
1 point

Your answer
Any person who destroyed or tampered a bank record will face a penalty of imprisonment for a
period of 6-12 years, or pay a ne of P50,000 to P10,000,000. *
1 point
True

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5/7/2021 PDIC Part 2

False
The Supreme Cou determines whether an o ense to defraud a bank poses a systemic
consequence or not. *
1 point
True
False
The Corporation shall ________ make a repo of its operations to the Congress as soon as
practicable a er the ______________. *
1 point
a. annually; 31st of January
b. quarterly; 1st day of the quarter
c. annually; 1st day of January
d. quarterly; last day in the 1st month of the quarter
A repo of the Audit for each scal year ending on June 30 shall be made by the Auditor General
to the Congress not later than ________ following the close of such scal year. *
1 point
a. February 1
b. January 15
c. March 30
d. March 15
Enumerate the capital accounts included in Deposit Insurance Fund. (Use semi-colons [;] to
separate enumerated items) *
1 point

Your answer
The words "Bangko Sentral" and the "Bangko Sentral ng Pilipinas" wherever they appear in RA No.
3591, as amended, is hereby replaced with Central Bank and/or Central Bank of the Philippines. *
1 point
True
False
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PDIC LAW
Questionnaire
BSA 3 - 9

Altatis, Kirsten Kai P.

Catalasan, Charrize Mae O.
De Guzman, Sajid Carlo M.
Famadico, Allysa Fae F.
Overio, Cherilyn S.
Plata, Gemillen V.
Rambuyong, Mary Ann S.
Villanueva, Limuel
Zubiri, Norvic Angelo C.
 QUESTIONNAIRE

I. True or False

False 1. The term ‘insured deposit’ means the amount due to any bona fide depositor for
legitimate deposits in an insured bank gross of any obligation of the depositor to the
insured bank as of date of closure, but not to exceed P500,000.00.

True 2. R.A. No. 9576 stipulates that PDIC will not pay deposit insurance for investment
products such as bonds, securities, and trust accounts.

True 3. The PDIC may propose to adjust the maximum deposit insurance coverage, subject
to the approval of the President of the Philippines, in case of a condition that
threatens the monetary and financial stability of the banking system that may have
systemic consequences.

False 4. Depositors with valid deposit accounts with balances of more than Php100,000 who
have no outstanding obligations with the closed bank are not required to file a claim.

True 5. Depositors with accounts not eligible for early payment, regardless of type of account
and account balance per advice of PDIC, are required to file a claim.

False 6. In case of joint accounts such as “Or”, “And/Or” or “And” accounts, only one
depositor may sign the claim form provided they have agreed whom.

True 7. The PDIC has the authority to adjust the interest rate on unpaid interests on deposits
if such rate is deemed unreasonably higher compared to market rates.

False 8. A joint account shall be insured jointly with any individually-owned deposit account
provided it won’t reach the 500,000 maximum deposit insurance per depositor.

True 9. As for Philippine banks with branches outside the country, RA 3591 stipulates that
subject to the approval of the Board of Directors, any insured bank with branches
outside the Philippines may elect to include for insurance its deposit obligations
payable at such branch.

PDIC Law
 False 10. Claims should be filed and enforced within the two-year prescriptive period after
PDIC’s takeover of the closed bank.

II. Multiple Choices

1. Any bank the deposits of which are insured in accordance with the provisions of this Act.
A. Insured Deposit
B. Insured Bank
C. Bank
D. Deposit

2. What is the Maximum Deposit Insurance Coverage?

A. Php500,000, per account, of a closed bank
B. Php500,000, per single account only, of a closed bank
C. Php500,000, per joint account only, of a closed bank
D. Php500,000, per depositor, of a closed bank.

3. The following are required to file a claim EXCEPT:

A. Depositors who have outstanding obligations with the closed bank regardless of
amount deposits.
B. Depositors with valid deposit accounts with balances of more than Php 100,000.
C. Depositors who have complete and updated addresses in the bank records.
D. Depositors with accounts not eligible for early payment, regardless of type of account
and account balance per advice of PDIC.

4. The PDIC is an attached agency of the:

A. Department of Finance
B. Department of Trade and Industry
C. Department of Foreign Affairs
D. Department of Labor and Employment

5. Arrange the procedure for the PDIC:

X. PDIC shall publish the notice once a week for at least 3 consecutive weeks in a newspaper
of general circulation or, when appropriate, in a newspaper circulated in the community
or communities where the closed bank or its branches are located.

PDIC Law
 Y. PDIC shall commence the determination of insured deposits due to the depositors of a
closed bank upon its actual takeover of the closed bank.
Z. PDIC shall give notice to the depositors of the closed bank of the insured deposits due
them by whatever means deemed appropriate by the Board of Directors.

A. Z-Y-X
B. X-Y-Z
C. Y-Z-X
D. Y-X-Z

6. The PDIC now has the authority to except:

A. Have quicker access to their insured deposits should their bank close
B. Resolve problem banks while still closed
C. Hasten the liquidation process for closed banks
D. Mete out stiffer sanctions and penalties against those who engage in unsafe and
unsound banking practices

7. Funds held by an insured bank in a fiduciary capacity and includes without being limited
to, funds held as trustee, executor, administrator, guardian, or agent.
A. Insured Funds
B. Depositor Funds
C. Trust Funds
D. Issued Funds

8. Under the amended PDIC Charter, the Corporation is mandated to provide _________ and
promote financial stability by providing permanent and continuing deposit insurance up to
the maximum deposit insurance coverage of P500,000 per depositor per bank.
A. Depositor Protection
B. Bank Protection
C. Bank Statement
D. Depositor Allowance

a. PDIC member banks include the following institutions authorized by the Bangko Sentral ng
Pilipinas (BSP) to perform banking functions in the Philippines EXCEPT:

A. Mortgage banks
B. Commercial banks

PDIC Law
 C. Savings banks
D. None

b. The _______ entitlement to joint deposits is separate from the ______ applicable to the
individually owned accounts by the depositor, giving him a maximum of ______ insurance
coverage.
A. Php500,000; Php1,000,000; Php1,500,000
B. Php1,000,000; Php500,000; Php500,000
C. Php500,000; Php500,000; Php1,000,000
D. Php250,000; Php250,000; Php500,000

PDIC Law
 QUIZ 1: RA 3591

1. Generally, this is the only court that can issue any temporary restraining
order, preliminary injunction, or preliminary mandatory injunction against the
Corporation.
a. Supreme Court
b. Court of Appeals
c. Regional Trial Court
d. Municipal Trial Court
2. The individual stockholders or their representatives can claim the residual
assets of the closed bank within a period of how many months from the
publication of notice of the approval by the court of the financial asset
distribution plan?
a. 6 months
b. 180 days
c. 30 days
d. 4 months
3. In the line of the first appointees as members of the Board of Directors of
PDIC, the first two appointees shall serve for a period of how many years?
a. 6 years
b. 5 years
c. 4 years
d. 3 years
4. What are the criteria in choosing the member of the Board of Directors of
PDIC? (Choose 3)
a. Natural born Filipino
b. At least 35 years old
c. Of good moral character
d. Of unquestionable integrity and responsibility
5. All of the following warrants imprisonment of not less than 6 years but not
more than 12 years or a fine of not less than P50,000 but not more than P10
million, or both, EXCEPT:
a. Splitting of deposits or creation of fictitious or fraudulent loans or deposit
accounts by an agent of a bank
b. Any person refusing to disclose information, records, or data pertaining to the
bank accounts of a closed bank to the receiver
c. Any depositor who files a fictitious and/or fraudulent claim for deposit
insurance
d. A director of a bank refusing to turn over or destroying or tampering bank
records
6. As stated in Sec. 15, the approval of the liquidation court is a prerequisite so
that the receiver can facilitate and implement the purchase of the assets of the
closed bank and the assumption of its liabilities by another insured bank.
a. True
b. False
7. This is the remaining assets of the closed bank after satisfaction in full of all
the liquidation costs, fees and expenses, and valid claims.
a. surplus and dividends
b. income
c. residual assets
d. retained earnings
8. How many senators shall be appointed by the President of the Philippines to
be part of the Joint Congressional Oversight Committee?
a. 4
b. 5
c. 6
d. 7
9. Who serves as the Chairman of the Board of Directors of the PDIC without
compensation?
a. Governor of the Bangko Sentral ng Pilipinas
b. President of the Corporation
c. President of the Philippines
d. Secretary of Finance
10. The permanent insurance fund, in accordance with Sec. 17, should amount to:
a. 1 million
b. 3 billion
c. 3 million
d. 1 billion
11. The report if the audit submitted by the Auditor General to the Congress as a
result of their audit of the corporation shall consist of: (Choose 3)
a. Statement of Income and Expenses
b. Statement of Surplus or Deficit Analysis
c. Statement of Sources and Application of Funds
d. Statement of Cash Flows
12. "Winding up" refers to the act of physically taking possession and control of
the premises, assets, and affairs of a closed bank for the purpose of
liquidating the bank.
a. True
b. Payout
c. Takeover
 d. Liquidation
13. Whenever a bank is ordered closed by the Monetary Board, ______ shall be
designated as the receiver.
a. Bangko Sentral ng Pilipinas
b. Philippine Deposit Insurance Corporation
c. Department of Finance
d. Securities and Exchange Commission
14. How often should the Corporation make a report of its operations to the
Congress?
a. Monthly
b. Quarterly
c. Semi-annually
d. Annually
15. This refers to the amount due to any bonafide depositor for legitimate
deposits in an insured bank as of the date of closure but not to exceed
P500,000.
a. insured deposit
b. insured claim
c. deposit
d. claim
16. The Deposit Insurance Fund of the Corporation shall principally consist of the
following: (Choose 3)
a. Permanent Insurance Fund
b. Surplus and Dividends
c. Assessment Collections
d. Retained Earnings
17. Any restraining order or injunction issued in violation of Sec. 27 of the
amended PDIC Charter is:
a. void
b. voidable
c. unenforceable
d. rescissible
18. How many members of the Board should be present to constitute a quorum?
a. 7
b. 6
c. 5
d. 4
19. The assessment rate paid by banks in accordance with Sec. 7 is:
a. 1/2 of 1%
b. 1/3 of 1%
 c. 1/5 of 1%
d. 1/7 of 1%
20. As stated in Sec. 11, the resolution of a bank may commence upon:
a. Failure of prompt corrective action as declared by the Monetary Board
b. Request by a bank to be placed under resolution
c. Both may be the reason
d. None of these may be the reason
 PDIC LAW
(R.A. 3591 as amended by R.A 7400, R.A. 9302 [2004], R.A. 9576 [2009], and
R.A. 10845 [2016])
QUIZ

1. If the account is held by a juridical person or entity jointly with one or more natural
persons, the maximum insured deposit shall pe presumed to belong entirely to such
juridical person or entity.
a. True
b. False

2. Depositor HAN, owns a savings account in ALIEN Bank with a balance of Php 325,000.
Aside from the savings account, HAN also opened a current account in ALIEN Bank with a
balance of Php 1,080,000. In 2021, ALIEN Bank was ordered by the Monetary Board to be
closed due to insolvency. How much can HAN recover form PDIC?
a. 0
b. PHP 320,000
c. PHP 500,000
d. None of the above

3. Previously the PDIC’s maximum deposit insurance coverage is up to Php 350,000 per
depositor with the bank. R.A. No. 9576 signed by the President on April 29, 2009 increased
the coverage to PHP 500,000.
a. False
b. True

4. PDIC covers the risk of bank closure order by the Monetary Board, bank losses due to
theft, fire, closure by reason of strike or existence of public disorder, revolution or civil
war.
a. True
b. False

5. JISUNG and MINHO have the following account balances in Bank MINSUNG:
JISUNG PHP 500,000
MINHO PHP 500,000
JISUNG and MINHO PHP 500,000
How much can MINHO recover from PDIC?
a. 0
b. PHP 500,000
c. PHP 750,000
d. PHP 1,000,000
6. The bank records of Bank MAMAMOO show the following joint account and their
balances:
Hwasa and/or Solar PHP 500,000
Hwasa and/or Wheein PHP 500,000
Hwasa and/or Moonbyul PHP 500,000
Is each account insured?
a. Yes
b. No

7. For account holders with a total deposit amount of not more than Php 100,000, there is
an automatic payment by mail. PDIC sends the check to by mail, in cooperation with the
Philippine Postal Office. Provided that the following requisites are satisfied except:
a. The depositor has no obligation with the closed bank, or have acted as co-makers of
these obligations, or are not spouses of the borrowers
b. The depositor has complete mailing address found in the bank records or have
updated their addresses through the Mailing Address Update Form (MAUF) of PDIC
before the start of the onsite claims settlement operation
c. The depositor has not maintained the account under the name of the business
entities.
d. All are requisites to receive claims through mail

8. When should the depositor of a closed bank file his deposit insurance claim with the PDIC?
a. Within 12 months from the date of bank takeover
b. Within 24 months from the date of bank takeover
c. Within 36 months from the date of bank takeover
d. Within 48 months from the date of bank takeover

9. Enumerate the requirements in filing claims for account holders of more than Php
100,000
a. Original evidence of deposits
b. Valid original photo-bearing Identification Document (ID) with clear signature of
depositor/claimant
c. Birth certificate, if depositor is below 18 and Valid ID of parent
d. Notarized SPA for claimants who are not the signatories in the bank records

10. Enumerate the mode of payment of the insured deposits

a. Cash
b. Bank transfer (by making available to each depositor a transferred deposit in another
insured bank in an amount equal to the insured deposit of such depositor)

11. Which of the following is/are TRUE?

I. A person to be appointed as a member of the Board shall be above thirty-four
(34) years of age.
II. The President of the Corporation shall also serve as the Chairman of the Board.
 a. Both statements
b. Only Statement I
c. Only Statement II
d. None of the statements
Section 3, PDIC Charter 2016 Edition

12. Which of the following is/are TRUE?

I. Deposit, under RA 3591, means the unpaid balance of money or its equivalent
received by a bank in the usual course of business including any obligation of a
bank which is payable at the office of the bank located outside of the Philippines.
II. The corporation shall NOT pay deposit insurance for investment products such as
bonds and securities, trust accounts, and other similar items.

a. Both statements
b. Only Statement I
c. Only Statement II
d. None of the statements
Definition of terms, PDIC Charter 2016 Edition

13. Which of the following is/are TRUE?

I. The term payout means a deposit in an insured bank made available to a
depositor by the Corporation as payment of insured deposit of such depositor in
a closed bank and assumed by another insured bank
II. The term valid claim refers to a claim or suit against the asset of a closed bank.

a. Both statements
b. Only Statement I
c. Only Statement II
d. None of the statements
Definition of terms, PDIC Charter 2016 Edition

14. The insurance risk evaluation of the Corporation, which may be done whenever the BSP
determined a bank to be capital deficient, include:
I. The determination of fair market value of the assets and liabilities of the bank.
II. The determination of credit management and credit policy implemented by the
bank as a control to reduce its financial risks.
III. The determination of the risk classification of the bank.
IV. The determination of possible resolution modes under Section 11 of this Act,
subject to terms and conditions as the PDIC Board may prescribe.

a. I, II, III and IV

b. I, III and IV
c. I, II, and IV
 d. I and IV
Section 6, PDIC Charter 2016 Edition

15. Which of the following is/are TRUE?

I. Under Section 7 of this act, the assessment rate shall be determined by the Board
of Directors
II. The assessment rate shall not exceed 0.20% per annum. The semi-annual
assessment for each insured bank shall be in the amount of the half of the
assessment rate multiplied by the assessment base, provided that it shall be at
least Five thousand pesos (P5, 000.00).

a. Both statements
b. Only Statement I
c. Only Statement II
d. None of the statements
Section 7, PDIC Charter 2016 Edition

16. Personnel of the Corporation are prohibited from:

I. Being an officer, director, consultant, employee or stockholder, directly or
indirectly, of any bank or banking institution except as otherwise provided in this
act.
II. Receiving any gift or thing of value from any officer, director or employee thereof.
III. Revealing any information relating to the condition or business or business of
such institution unless the information is to be given to the Board of Directors,
Vice Chairman of the Board, Congress, any agency of government authorized by
law, or to any person authorized by either of them in writing to receive such
information.

a. I, II and III
b. I and II
c. I and III
d. II and III
Section 10 (d-1) (e), PDIC Charter 2016 Edition

17. X and Y have the following deposits in B Bank:

 Account in the name of X, P300,000 savings deposit
 Account in the name of X AND Y, P600,000 time deposit
 Account in the name of Y, P480,000 savings deposit
 Account in the name of X OR Z, P98,000 demand deposit
 Account in the name of Y AND Z, P400,000 demand deposit

How much is the total insured and uninsured deposit of Y?

 a. P980,000; P89,000
b. P980,000; P40,000
c. P1,000,000; P20,000
d. P1,000,000; P69,000

18. How much is the total insured and uninsured deposit of X?

a. P640,000; P0
b. P640,000; P140,000
c. P689,000; P0
d. P689,000; P140,000

19. On April 10, 2021, upon examination, The Philippine Deposit Insurance Corporation
disclosed that U Bank, an insured bank, violated the section 2 of RA 1405.The Board of
Directors of the Philippine Deposit Insurance Corporation then submitted a report of the
examination to the Monetary Board in order to secure corrective action thereon. If it is
deemed necessary, when can the Board of Directors institute motu proprio corrective
action, assuming that the Monetary Board failed to take such?

a. May 15, 2021

b. April 30, 2021
c. May 25, 2021
d. June 9, 2021
Section 8, PDIC Charter 2016 Edition

20. Enumeration: Who can sign the insurance claim?

a.) Depositor of the account
b.) Parent
c.) Agent
d.) Trustees
e.) Each Depositor (in case of JA)
 PDIC ACT AND MAXIMUM DEPOSIT
INSURANCE

1. What is the maximum amount of insurance that any bona fide depositor for legitimate
deposits net of any obligations a depositor can have?

P500,000

P1,000,000

P650,000

P750,000

2. The Philippine Deposit Insurance Corporation is a government instrumentality to insure the

deposits of all banks which are entitled to the benefits of assurance. The PDIC is an attached
agency of the Commission of Audit.

True

False

3. Statement 1: Foreign Currency deposits are considered as insured deposits under the PDIC
law. Statement 2: Deposits payable outside the Philippines are considered insured deposits
under the PDIC law.

Only Statement 1 is true.

Only Statement 2 is true.

Both statements are true.

Both statements are false

4. How much is the insured deposit of Juyeon?

 383,000

327,000

277,000

283,000

5. Give at least three (3) insured deposits. *

Savings Deposit, Special Savings, Demand/Checking Account, Negotiable Order of Withdrawal

(NOW), Certificate of Time Deposits, Foreign Currency Deposit

6. In case of joint account between a juridical person and a natural person, who shall be entitled
to the maximum insured deposit of P500,000 in such joint account?

Juridical person

Natural person

Both juridical and natural person equally

Neither juridical person nor natural person

7. What is the maximum deposit insurance coverage by PDIC in so far as Eren Jaeger is
concerned?
 P1,000,000

P1,200,000

P500,000

P800,000

8. Mr. X has a deposit in Bank A of an amount of P250,000 and P300,000 in Bank B and these
banks are located in the Philippines. Suddenly because of the pandemic, these banks
shutdown. How much deposit will Mr. X be insured?

P550,000

P500,000

P250,000

P300,000
9. Mr. X has a deposit in Bank A of an amount of P250,000 and P300,000 in Bank B and only
Bank A is located in the Philippines. Suddenly because of the pandemic, these banks
shutdown. How much deposit will Mr. X be insured?

P500,000

P250,000

P550,000

P300,000

10. The P500,000 entitlement to joint deposits is not separate from the P500,000 applicable
to the individually owned accounts by the depositor.

True

False

11. A depositor who maintains both individual and joint accounts may be insured up to a
total of P1,000,000.

True

False

12. Emori has an individually owned account in Bank A located in the Philippines with an
amount of P500,000 and has a joint account also in Bank A together with Murphy with an
amount of P1,000,000. How much of Emori's deposit is insured? .

P500,000

P1,000,000

P1,500,000

P250,000

13. Emori has an individually owned account in Bank A located in the

 Philippines with an amount of P500,000 and has a joint account also in Bank A
together with Murphy with an amount of P1,000,000. She also has a deposit in
Bank B also located in the Philippines with an amount of P500,000. How much of
Emori's deposit is insured?

P500,000

P1,500,000

P1,000,000

P750,000

14. Emori has an individually owned account in Bank A located in Japan with an amount of
P500,000 and has a joint account also in Bank A together with Murphy with an amount of
P1,000,000. She also has a deposit in Bank B also located in Japan with an amount of
P500,000. How much of Emori's deposit is insured?

P500,000

P1,000,000

P1,500,000

15. Which banks are member of the PDIC?

Banks incorporated under Philippine Laws

Banks incorporated under Foreign Laws

Domestic branches of foreign banks.

Both A and C

16. PDIC insures valid deposits in domestic offices of its member-banks. Deposits are
considered valid if, upon determination by PDIC, are recorded in the bank’s records, and
are evidenced by inflow of cash.

True

False
17. The following are powers of the PDIC, except for

Power of examination of banks

Power to secure corrective actions from the Monetary Board

Power to underwrite and advance costs of litigation

Power to exercise taxation and eminent domain

18. This is the stage within which the PDIC manages the affairs of the closed bank and
preserves its assets for the benefit of creditors:

Receivership

Liquidation

Examination

Rehabilitation

19. This refers to the recovery and conversion of assets into cash for distribution to all
creditors in accordance with the order of creditor in preference pursuant to law:

Receivership

Liquidation

Examination

Rehabilitation

20. The depositor of the closed insured bank has ___ months from date of bank takeover to
file his deposit insurance claim.

12

24

36

21. Who should sign the insurance claim? (Give at least two)
 Depositor, Parent, Agent, Trustee, Each Depositor

22. The following are the powers of the PDIC as a corporate body, except:

To adopt and use a corporate seal

To have succession

To make contracts

Answer not given

23. Statement I: Inter-branch deposits are not covered by deposit insurance. Statement II:
The liability of the PDIC for insured deposits rests upon the existence of deposits with
insured banks, not on the negotiability or nonnegotiability of the certificates evidencing
these deposits.

Both statements are true

Both statements are false

Statement I is true, Statement II is false

Statement I is false, Statement true is true

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Forms
5/4/2021 PDIC Law-Group 4

PDIC Law-Group 4
25 items

Name *

JUAN DELA CRUZ

It is a government instrumentality created in 1963 by virtue of R.A. 3591 to insure the 1 point
deposits of all banks which are entitled to the benefits of the insurance. *

Bangko Sentral ng Pilipinas

Philippine Deposited Insurance Corporation

Philippine Deposit Insurance Corporation

Department of Finance

The PDIC is composed of ____ members. * 1 point

Eight (8)

Nine (9)

Seven (7)

Six (6)

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5/4/2021 PDIC Law-Group 4

This is the amount due to any bonafide depositor for legitimate deposits in an insured 1 point
bank as of the date of closure but not to exceed Five hundred thousand pesos
(P500,000.00). *

Insured Deposit

Deposit Insurance

Insurance Coverage

Disputed Claims

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5/4/2021 PDIC Law-Group 4

Which of the following are the payments or transactions not covered by the deposit 1 point
insurance to be paid by the PDIC? *

I, II and III

II, III and IV

I, II, III and IV

I, III and IV

Who appoints the President of the Corporation and the four members from the private 1 point
sector? *

BSP Governor

President of the Philippines

Governance Commission for the GOCCs

Secretary of the Department of Finance

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5/4/2021 PDIC Law-Group 4

Which of the following is not a ground for penalty for director, officer, employee, or 1 point
agent of a bank who made offense? *

Refuses to submit reports

Refuses or fails to assist the receiver in the service of the notice of closure

Refuses to receive the notice of closure

Refuses to allow the PDIC to take over a closed bank

* 1 point

Only Statement 1 is TRUE

Only Statement 1 is FALSE

Both statements are FALSE

Both statements are TRUE

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5/4/2021 PDIC Law-Group 4

Splitting deposits occurs wherever a deposit account with outstanding balance of more 1 point
than maximum insured amount is broken down to 2 or more accounts within __________
preceding closure of bank for purposes of availing maximum deposit. *

30 days

60 days

90 days

120 days

Which of the following judicial branch can issue TRO, preliminary injunction, or 1 point
preliminary mandatory injunction against PDIC? *

Supreme Court

Court of Appeals

Sandiganbayan

Court of Tax Appeals

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5/4/2021 PDIC Law-Group 4

* 1 point

Only Statement 1 is TRUE

Only Statement 1 is FALSE

Both statements are FALSE

Both statements are TRUE

The PDIC in coordination with the BSP may commence the bank resolution upon: * 1 point

A. Statement 1 is True, Statement 2 is False

B. Statement 1 is False, Statement 2 is True

C. Both statements are true

D. Both statements are false

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5/4/2021 PDIC Law-Group 4

To determine whether the bank may be resolved, the PDIC through the affirmative vote 1 point
of at least how many members of its Board? *

Whenever a bank is ordered closed by the Monetary Board, the PDIC shall be designated 1 point
as the receiver of the closed bank and shall proceed with the takeover and liquidation of
the closed bank. *

True

False

The receiver may cancel, terminate, rescind or repudiate any contract of the closed bank 1 point

that is necessary for the orderly liquidation of the bank, or is grossly disadvantageous to
the closed bank, or for any ground provided by law. *

True

False

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5/4/2021 PDIC Law-Group 4

The closure of the bank shall be deemed effective upon the service of the notice of 1 point

closure *

True

False

It is a special proceeding for the liquidation of a closed bank including the declaration of 1 point

concomitant right of its creditors and order of payment for their claims. *

Petition for Assistance in the Liquidation

Conference Proceedings

Petition for Assistance in the Winding Up

Corporate Proceedings

The amount of Permanent Insurance Fund of the Philippine Deposit Insurance 1 point
Corporation. *

P2 000 000

P2 500 000

P3 000 000

P3 500 000

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5/4/2021 PDIC Law-Group 4

Which of the following is not a component of Deposit Insurance Fund of PDIC? * 1 point

Retained Earnings

Permanent Insurance Fund

Assessment Collection

Sinking Fund

The Philippine Deposit Insurance Corporation is exempted from Republic Act No. 7656. 1 point

True

False

For the purpose of computing the amount of dividends to be declared and remitted of 1 point
PDIC, the dividend rate shall be at least 30% of the income from other sources. *

True

False

The deposit liabilities of any bank which is engaged in business of receiving deposits 1 point
shall be insured with the Corporation. *

True

False

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5/4/2021 PDIC Law-Group 4

The assessment base shall be the amount of the liability of the bank for deposits without 1 point

any deduction for indebtedness of depositors. *

True

False

The semi-annual assessment base for one semi-annual period shall be the average of 1 point
the assessment base of the bank as of the close of business on February 28 and May 31.
*

True

False

The semi-annual assessment base for other semi-annual period shall be the average of 1 point
the assessment base of the bank as of the close of business on September 30 and
December 31. *

True

False

One of the powers of the Corporation as a corporate body is to determine the 1 point
appropriate mode of liquidation of a closed bank and implement the same. *

True

False

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5/4/2021 PDIC Law-Group 4
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 Forms

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 QUIZ 2: RA 9576

1. The composition of the Joint Congressional Oversight Committee

a. the chairpersons of the House Committee on Banks and Financial
Intermediaries and the Committee on Appropriations
b. 5 members to be appointed by the Speaker of the House of Representatives
c. the chairpersons of the Senate, Committee on Banks, Financial Institutions
and Currencies, and the Committee on Finance
d. 5 senators to be appointed by the President of the Philippines
e. 5 members to be appointed by the House Committee on Banks and Financial
Intermediaries and the Committee on Appropriations
f. 5 senators to be appointed by the President of Senate
2. Investment products such as trust accounts and bonds ARE SUBJECT to
deposit insurance.
a. True
b. False
3. Fictitious deposit transactions ARE NOT SUBJECT to deposit insurance.
a. True
b. False
4. Deposits coming from unlawful activities and unsafe banking practices ARE
NOT SUBJECT to deposit insurance.
a. True
b. False
5. The petition for certiorari may only be filed AFTER thirty (30) days from notice
of denial of claim of deposit insurance.
a. True
b. False
6. In case of a condition that threatens the monetary and financial stability of the
banking system that may have systemic consequences, the maximum deposit
insurance cover MAY BE ADJUSTED in such amount, for such a period, and
for such deposit products
a. True
b. False
7. Upon effectivity of Republic Act No. 9576, all tax obligations of the PDIC for a
period of THREE (3) years shall be chargeable to the Tax Expenditure Fund.
a. True
b. False
8. That any obligation of a bank which is payable at the office of the bank located
outside of the Philippines shall NOT be a deposit for any of the purposes of
this Republic Act no. 9576.
a. True
 b. False
9. Any insured bank which is incorporated under the laws of the Philippines
which maintains a branch outside the Philippines may elect to include for
insurance its deposit obligations payable ONLY at such branch.
a. True
b. False
10. All notes, debentures, bonds, or such obligations issued by the Corporation
for purposes of providing liquidity for settlement of insured deposits in closed
banks as well as for financial assistance shall be exempt from taxation BOTH
as to principal and interest.
a. True
b. False
11. It refers to the amount due by insured banks to depositors after deducting any
obligations of the latter to the former.
a. Interest payable
b. Notes payable
c. Investment income
d. Insured deposits
12. It occurs whenever a deposit account with an outstanding balance under the
name of natural or juridical persons is broken down and transferred into two
more accounts in the name/s of natural and juridical persons or entities who
have no beneficial ownership on transferred deposits.
a. Splitting of deposits
b. Splitting of credits
c. Splitting of bank accounts
d. Share split
13. It refers to the unpaid balance of money received by a bank in the ordinary
course of business.
a. Deposits
b. Assets
c. Loans
d. Investments
14. It is an act which aims to strengthen the power and authority of the Philippine
Deposit Insurance Corporation (PDIC).
a. Truth in Lending Act
b. Unclaimed Balances Law
c. Secrecy of Bank Deposits
d. Maximum Deposit Insurance Coverage Act
15. The maximum deposit insurance, as amended, a depositor is entitled into is:
a. P250,000
 b. P300,000
c. P500,000
d. P750,000
16. In case of accounts held jointly by two or more natural or juridical persons,
the maximum deposit insurance shall be:
a. Divided equally
b. Divided based on stipulated sharing ratio, if any
c. Either A or B
d. Neither A nor B
17. In case of accounts held by a juridical person or entity jointly with one or more
natural persons, the maximum deposit insurance shall be:
a. Divided equally
b. Divided based on stipulated sharing ratio, if any
c. Given entirely to such juridical person
d. Given entirely to such natural person
18. This committee is created to oversee the implementation of Republic Act No.
9576.
a. Joint Congregation Overseeing Committee
b. Joint Congressional Oversight Committee
c. Joint Congregation Oversight Committee
d. Joint Congressional Overseeing Committee
19. What is the approval date for Republic Act No. 9576?
a. April 28, 2009
b. April 29, 2009
c. April 28, 2008
d. April 29, 2008
20. _________ shall have the authority to review the organizational set-up of the
Corporation and adopt a new or revised organizational structure as it may
deem necessary for the Corporation to undertake its mandate and functions.
a. Management
b. Board of Directors
c. Philippine Deposit Insurance Corporation
d. Monetary Board
 Bank Secrecy Law, Unclaimed Balances,

Truth in Lending Act, Maximum Deposit Insurance Act

QUIZ

1) It is the policy of the State to protect its citizens from a lack of awareness of the true
cost of credit to the user by assuring a full disclosure of such cost with a view of
preventing the uninformed use of credit to the detriment of the national economy.
a) Unclaimed Balances
b) Maximum Insurance Act
c) Truth in Lending Act
d) Bank Secrecy Law

2) What is/are the objective/s of Maximum Deposit Insurance Coverage?

a) To help people know how to deposit properly
b) To strengthen the mandatory deposit insurance coverage system to generate,
preserve, maintain faith and confidence in the country’s banking system, and
protect it from illegal schemes and machinations.
c) Help the PDIC to effectively fulfill its vital task of promoting and safeguarding the
interests of the depositing public by way of providing permanent and continuing
insurance coverage on all insured deposits
d) None of the above

3) Republic Act 3936 requires that unclaimed balances shall be forwarded to the
Department of Budget and Management
a) True
b) False

4) Unclaimed deposits shall be in favor of a person who

a) is in another country
b) is dead
c)have not made further deposits or withdrawals during preceding 10 years or more
d) b & c
e) all of the above

5) If the president, cashier or managing officer of the bank, building and loan association,
or trust corporation neglects or refuses to make and file the sworn statement required
by this action, such bank, building and loan association, or trust corporation shall pay to
the Government the sum of five hundred pesos a month for each month or fraction
thereof during which such default shall continue
 a) True
b) False

6) It includes interest, fees, service charges, discounts, and such other charges incident to
the extension of credit as the Board may be regulation prescribe.
a) Personal Charge
b) Finance Charge
c) Service Charge
d) Admission Charge

7) What are the penalties in case of violation of Republic Act 3765 also known as the Truth
in Lending Act?
a) Any creditor is liable in the amount of P100 or in an amount equal to twice the
finance charged required by such creditor in connection with such transaction,
whichever is greater.
b) The creditor is liable for reasonable attorney's fees and court costs as determined
by the court.
c) All of the above
d) None of the above
8) Any bank, building and loan association or trust corporation which shall make any
deposit with the Treasurer of the Philippines in conformity with the provisions of this
Act shall not thereafter be liable to any person for the same.
a) True
b) False

9) Within the Unclaimed balances act, unclaimed balances include credit or deposits of the
following, except?
a) Money
b) Bullion
c) Security
d) Property

10) What is the penalty for violation of Republic Act 1405 Bank Secrecy Law?
a) Imprisonment of more than five years or a fine of more than twenty thousand
pesos, or both
b) Imprisonment of more than five years or a fine of not more than twenty thousand
pesos, or both
c) Imprisonment of not more than five years or a fine of not more than twenty
thousand pesos, or both

11) All deposits with banks or banking institutions in the Philippines including investments
in bonds issued by the Government of the Philippines are hereby considered as of an
absolutely confidential nature according to Republic Act 1405.
a) True
 b) False

12) Under R.A. 3765, No punishment or penalty provided by this Act shall apply to the
Philippine Government or any agency or any political subdivision thereof.
a) True
b) False

13) It shall be lawful for any official or employee of a bank, or for an independent auditor
hired by a bank, to disclose to any person other than a bank director, official or
employee authorized by the bank, any information concerning deposits. *
a) True
b) False

14) Through R. A. 1405, the Government encourage people to deposit their money in
banking institutions and to encourage private hoarding so that the same may be
properly utilized by banks in authorized loans to assist in the economic development of
the country.
a) True
b) False

15) (Deposit) means the amount due to any bona fide depositor for legitimate deposits in
an insured bank net of any obligation of the depositor to the insured bank as of the date
of closure, but not to exceed 500,000 pesos.
a) False
b) Insured Deposit
c) Uninsured Deposit
d) True

16) What Republic Act is Maximum Insurance Coverage?

a) 9567
b) 6795
c) 9576
d) 5976
17) Which of the following situation(s) is an exemption of Bank Secrecy Law?
a) If an immediate family of the depositor requested access to information.
b) None of the choices
c) Upon order of competent court in cases of bribery or dereliction of duty
d) If there is a written permission or consent by depositor.

18) The Truth in Lending Act protects any person against inaccurate and unfair credit billing
and credit card practices.
a) True
b) False
19) All notes, debentures, bonds, or such obligations issued by the Corporation shall not be
exempt from taxation, both as to principal and interest, and shall be fully guaranteed
by the government.
a) True
b) False
 Bank Secrecy Law

1. Under Republic Act No.1405, what is the nature of bank deposit and investment in
government bonds?

As a general rule, they are absolutely confidential in nature.

As a general rule, they are generally subject to any type of inspection.

They are exempted from any type of inquiry.

None of the above.

2. Which of the following is not an exception to the secrecy of bank deposits?

Upon order of the CA, examination of law enforcement officers in terrorism cases.

Impeachment cases of the President.

Crime of theft where it is unknown where the funds were deposited.

Upon the order of a competent course in case of bribery or dereliction of duty of

public officials.

3. Deposits accounts in Bank Secrecy Law are in the form of?

- Savings Account, Current Account, Time Deposits

4. They refer to money or funds placed with a bank that can be withdrawn on the
depositor's order or demand.

Deposits

Trust funds

Money Market Placements

Deposit Substitutes

5. The purpose/s of R.A No.1405 is/are to

 Give encouragement to the people to deposit their money in banking institutions.

Discourage private hoarding so that the same may be properly utilized by banks in
authorized loans to assist in the economic development of the country.

All of the above.

None of the above.

6. The Bangko Sentral can examine bank accounts in the course of its periodic 1 point or
special examination regarding compliance with Anti-Money Laundering Law.

True

False

7. Which of the following inquiries will be considered a violation of Peso Deposit Secrecy
Law?

Periodic inquiry or special examination of bank deposits by BSP to ensure compliance

with the Anti-Money Laundering Law.

Inquiry or bank deposits by BIR Commissioner in relation to an application for

compromise of taxable liability or determination of a decedent's gross estate under National
Internal Revenue Code.

Inquiry of bank deposits by PDIC when there is finding of unsafe or unsound banking
practices.

Inquiry of bank deposits by DOJ Secretary for the purpose of persecution of the
members of the opposing political party.

8. As a general rule, which type of bank deposit may not be subject to attachment,
execution or garnishment?

Philippine Peso Bank Deposit

Foreign Currency Bank Deposit

Both A and B

Neither A and B
9. The following are the exceptional cases when the BIR Commissioner may inspect bank
deposits, except

When there is application of compromise liability by a taxpayer on the ground of

financial incapacity

To determine the gross estate for computation of estate tax's liability

When a request for tax information of specific taxpayers made by a foreign tax
authority pursuant to a tax treaty under The Exchange of Information on Tax Matters Act of
2009

To determine the taxable income of politicians

10. The following instruments are considered absolutely confidential in nature, except

Time Deposit

Savings Deposit

Current Account

Money Market Placements

11. What is the penalty provided by law for violation of RA 1405 a.k.a Philippine Peso
Deposit Secrecy Law?

Imprisonment of not more than five years or fine of not more than P20,000 or both
imprisonment and fine.

Imprisonment of not more than ten years or fine of not more than P200,000 or both
imprisonment and fine.

Imprisonment of not more than twenty years or fine of not more than P2,000,000 or
both imprisonment and fine.

Imprisonment of not more than one year or fine of not more than P2,000 or both
imprisonment and fine.

12. If the Ombudsman is convinced that there is a violation of law afterinvestigating a

complaint alleging illicit bank deposits of a public officer, the Ombudsman may order the
bank concerned to allow in camera inspection of bank records and documents.

True

False
13. Investments in Corporate Bonds are debt securities which are unconditional obligations
of the State, and backed by its full taxing power. It includes treasury bills, treasury notes,
retail treasury bonds, dollar linked peso notes, and other risk-free bonds.

True

False

14. What is the penalty for violating Bank Secrecy Law under foreign currency deposits?

Imprisonment: 1-5 years Fine: Not to exceed P20,000

Imprisonment: Not to exceed 5 years Fine: Not to exceed P20,000

Imprisonment: Not to exceed 5 years Fine: P5,000 - P25,000

Imprisonment: 1-5 years Fine: P5,000 - P25,000

15. Mr. X is an auditor of ABC company and it is his first year of experience as an
auditor. While auditing the financial statements of the company, he noticed the
large amount in the account “Cash in Bank” and he was so surprised about it that
he cannot forget it. After his work, he had a drink with his friends and disclosed the
amount of deposits that ABC company has. His friends are not professionals and
cannot cause any harm with the information obtained. Did Mr. X violate the Bank
Secrecy Law?

Yes

No

Maybe

Both B and C

16. Which is not an exception to the Bank Secrecy Law?

Written permission of the depositor

Letter of threat by a creditor

By order of a competent court

When an official is under an impeachment case

17. The Bank Secrecy Law (RA 1405) prohibits disclosing any information about deposit
records of an individual without court order except:

In an investigation by the Ombudsman

In an investigation for violation of Anti-Graft and Corrupt Practices

In an examination to determine gross estate of a decedent

In an impeachment proceeding

18. X, a private individual, maintains a dollar deposit with ABC Bank, X is suspected to be the
leader of a Kidnap for Ransom Gang and he is suspected of depositing all ransom money
in said deposit account which are all in US Dollars. The police want to open said account
to know if there are really deposits in big amounts. Which statement is most accurate?

An approval from the Monetary Board is necessary to open the account

The same rules under Secrecy of Bank Deposit Act will apply

Because the deposit is in US Dollars, it is covered by the Foreign Currency Deposit

Act which allows disclosures only upon the written permission of the depositor

Approval from the Court is necessary to order disclosure of the account.

19. Statement I: A co-payee in a check deposited in a bank is likewise a co- depositor thereof;
no written consent of other co-payee is necessitated in an inquiry of the deposits by the
said co-depositor. Statement II: Money market placement is not covered by RA 1405
because it is not deposited in a bank.

Both statements are true

Both statements are false

Statement I is true, Statement II is false

Statement I is false, Statement II is true.

20. Give at least three (3) examples of government bonds.

- Treasury Bills, Treasury Notes, Retail Treasury Bonds, Dollar Linked Peso Notes
21. Which of the following is an exception to the secrecy of bank deposits which are in
Philippine Peso, but NOT an exception to the secrecy of foreign currency deposits?

Upon Bangko Sentral ng Pilipinas (BSP) inquiry into or examination of deposits or

Investments with any bank, when the inquiry or examination is made in the course of the
BSP's periodic special examination of said bank to ensure compliance with the AMLA

Upon PDIC and BSP inquiry into and examination of deposit accounts in case there is
a finding of unsafe or unsound banking practice

Upon inquiry by the Commissioner of Internal Revenue in the event a taxpayer has an
application to compromise his tax liabilities on the ground of financial incapacity

Upon inquiry in cases of impeachment

.
5/4/2021 Truth in Lending Act, Bank Secrecy Law, Unclaimed Balances Law and AMLA

Truth in Lending Act, Bank Secrecy Law,

Unclaimed Balances Law and AMLA
25 items

Name *

JUAN DELA CRUZ

The Bank Secrecy Law is an act to require the disclosure of finance charges in 1 point
connection with extensions of credit. *

True

False

It is obligatory of every bank to report, a sworn statement, to the Treasurer of the 1 point
Philippines (who will, in turn, inform the Solicitor General) information on the unclaimed
balances. *

True

False

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5/4/2021 Truth in Lending Act, Bank Secrecy Law, Unclaimed Balances Law and AMLA

Peso deposits can be disclose when there is a written permission or consent in writing of 1 point
the depositor. *

True

False

Treasury bills is not covered by the Bank Secrecy law. * 1 point

True

False

Action to recover such penalty from failure of disclosing information may be brought by 1 point
such person within six (6) months from the date of the occurrence of the violation. *

True

False

________ refer to money or funds placed with a bank that can be withdrawn on the 1 point
depositor’s order or demand, such as deposits in the form of savings, current and time
deposits. *
USE CAPITAL LETTERS.

DEPOSITS

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5/4/2021 Truth in Lending Act, Bank Secrecy Law, Unclaimed Balances Law and AMLA

__________ includes interest, fees, service charges, discounts, and such other charges 1 point
incident to the extension of credit as the Board may be regulation prescribe. *
USE CAPITAL LETTERS.

FINANCE CHARGE

These are debt securities which are unconditional obligations of the State, and backed 1 point
by its full taxing power. *
USE CAPITAL LETTERS. (_ _ BY _ )

INVESTMENT BONDS BY GOVERNMENT

________ means any person engaged in the business of extending credit * 1 point
USE CAPITAL LETTERS.

CREDITOR

_________ include credits or deposits of money, bullion, security or other evidence of 1 point
indebtedness of any kind, and interest thereon with banks, buildings and loan
associations, and trust corporations. *
USE CAPITAL LETTERS.

UNCLAIMED BALANCES

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5/4/2021 Truth in Lending Act, Bank Secrecy Law, Unclaimed Balances Law and AMLA

The following should be included in the clear statement disclosure as per the truth in 1 point
lending act, except *

The delivered price

The amounts, if any, to be credited as down payment and/or trade-in;

The name of the creditor

The total amount to be financed

The authority to reactivate on unclaimed balances with an aggregate amount not 1 point

exceeding P100,000.00 shall be issued by *

Division Chief/Head Law & Litigation Division Legal Service

Director, Legal Service

Deputy Treasurer of the Philippines

Treasure of the Philippines

Which of the following is not an exception when deposits can be disclosed? * 1 point

In cases of impeachment

Upon inquiry by the Commissioner of BIR

Upon a subpoena issued by the Ombudsman

Upon the examination of the Treasurer of the Philippines

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5/4/2021 Truth in Lending Act, Bank Secrecy Law, Unclaimed Balances Law and AMLA

What is the penalty for violation of the Bank Secrecy Law regarding Peso deposits? * 1 point

A fine of P20,000.00

Imprisonment of not more than 5 years

A fine of P5,000.00 to P20,000.00

Imprisonment of 10 years

Who is authorized to examine and audit government deposits pertaining to the revenue 1 point

and receipts of, and expenditures or uses of funds and properties? *

Monetary Board (BSP

Philippine Deposit Insurance Commission (PDIC

Commission on Audit (COA)

Presidential Commission on Good Government (PCGG)

International Criminal Police Organization (Interpol) defined it as any act or attempted 1 point
act to conceal or disguise the identity of illegally obtained proceeds so that they appear
to have originated from legitimate source. *

Money Pacquiao

Money Laundering

Money Washing

Money Gambling

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5/4/2021 Truth in Lending Act, Bank Secrecy Law, Unclaimed Balances Law and AMLA

Which of the following is not a cover person by AMLA? * 1 point

Pre-need companies

Pawnshops

Jewelry dealers

Quasi-broker

The AMLC shall be composed of: * 1 point

• BSP Governor as Chairman

• Commissioner of Insurance Commission as member

• Chairman of the SEC as vice chairman

• Chairman of the SEC as member

• President of the Corporation as vice chairman

Covered transaction refers to the following except: * 1 point

A transaction in cash or other equivalent monetary instrument involving a total amount in excess of
P500,000 within one banking day

A transaction with or involving jewelry dealers, dealers in precious metals and precious stones in
cash or other equivalent monetary instrument exceeding P1,000,000

A casino cash transaction exceeding P50,000,000 or its equivalent in any other currency

None of the above

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5/4/2021 Truth in Lending Act, Bank Secrecy Law, Unclaimed Balances Law and AMLA

The prosecution of money laundering and the associated unlawful activity shall proceed 1 point
independently. *

True

False

The Anti-Money Laundering Council is consisted of the following persons, except * 1 point

Commissioner of Insurance Commission

Chairman of Securities and Exchange Committee

Governor of Bangko Sentral ng Pilipinas

SEC Chairman

The following are unlawful activities under the Anti-Money Laundering Act, except * 1 point

Kidnapping for ransom

Malversation of Public funds

Theft

Violation of RA 9165

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5/4/2021 Truth in Lending Act, Bank Secrecy Law, Unclaimed Balances Law and AMLA

Generally, covered institutions shall report to the AMLC all covered or suspicious 1 point

transactions within _________ working days from occurrence. *

10

Who issues the freeze order upon application of the AMLC and after determination that 1 point

probable cause exists that any money instrument or property is in any way related to an
unlawful activity? *

Sandiganbayan

Regional Trial Court

Court of Appeals

Supreme Court of the Philippines

A court order is necessary when the offense or unlawful activity involved, except * 1 point

Destructive arson and murder

Robbery and extortion

Violation of RA 8293 or Intellectual Property Code of the Philippines

Smuggling under RA 455 and RA 1937

This content is neither created nor endorsed by Google.

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5/4/2021 Truth in Lending Act, Bank Secrecy Law, Unclaimed Balances Law and AMLA

 Forms

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 QUIZ 3: RA 3765

1. Any creditor shall furnish a clear statement to whom credit is extended the
following information: (Choose 3)
a. the difference between the cash price and the finance charge
b. the charges not in connection with the transaction and are incident to the
extension of credit
c. the cash price or delivered price of the property or service to be acquired
d. the percentage that the finance bears to the total amount to be financed
e. the total amount to be financed
2. Finance charge includes the following: (Choose 3)
a. Interest
b. Service charges
c. Discounts
d. Trade-in amount
e. Down payment
3. The following are examples of "credit" in accordance with the definition under
Republic Act. No. 3765: (Choose 3)
a. sale of goods paid upon making of such sale but for future delivery
b. option contracts
c. rental-purchase contract
d. sale of property for present delivery under which the price is payable
subsequent to the making of such sale or contract
e. deed of trust
4. In Republic Act No. 3765, the "Board" means:
a. the Board of Directors of the Corporation extending credit
b. the Monetary Board of the Central Bank of the Philippines
c. the Monetary Board of the Corporation extending credit
d. the Board of Directors of the Central Bank of the Philippines
5. Republic Act No. 3765 shall be known as the:
a. Secrecy of Bank Deposits
b. Maximum Deposit Insurance Coverage Act
c. Unclaimed Balances Law
d. Truth in Lending Act
6. Any creditor who fails to disclose to any person any information in violation of
the Act shall liable to such person:
a. in the amount of P100
b. in an amount equal to twice the finance charged required in connection with
such transaction
c. a or b whichever is greater
d. a or b whichever is lower
7. An exception to the rule on penalty of a creditor who fails to disclose to any
person the information required by the Act:
a. such liability shall be more than P2,000 on any credit transaction
b. such liability shall be more than P1,000 on any credit transaction
c. such liability shall not exceed P2,000 on any credit transaction
d. such liability shall not exceed P1,000 on any credit transaction
8. Action to recover the penalty for creditor's failure on disclosing required
information to any person may be brought by such person
within____________ from the date of occurrence of the violation:
a. six months
b. three months
c. twelve months
d. nine months
9. Any person who willfully violates any provision of this Act or any regulation
issued thereunder shall be fined by:
a. not less than P1,000 or more than P5,000
b. imprisonment for not less than 6 months, nor more than one year
c. a or/and b
d. none of the above
10. Who shall be liable for attorney's fees and court costs in any action under
Section 6(a) of this Act?
a. the debtor
b. the creditor
c. the person entitled for recovery
d. depends on the court's decision
11. What is the effectivity date of Republic Act No. 3765?
a. June 23, 1963
b. June 23, 1962
c. June 22, 1962
d. June 22, 1963
12. Republic Act No. 3765 is:
a. An act to require the disclosure of finance charges in connection with
extensions of credit
b. An act strengthen the regulatory and administrative authority, and financial
capability of the creditor
c. An act requiring banks to transfer unclaimed balances held by them to the
insular treasury
d. An act prohibiting disclosure of or inquiry into, deposits with any banking
institution and providing penalty therefor
13. _____________ refers to charges incident to the extension of credit.
a. Finance charges
b. Total consideration
c. Attorney's fees and court costs
d. Down payments
14. _____________ refers to any person engaged in the business of extending
credit who requires as an incident to the extension of credit, the payment of a
finance charge.
a. Guarantor
b. Broker
c. Debtor
d. Creditor
15. The percentage that the finance bears to the total amount to be financed
expressed as a simple annual rate is based on:
a. the outstanding unpaid balance of the obligation
b. the cash price or delivered price of the property or service to be acquired
c. the paid balance of the obligation
d. the total amount to be financed
16. Finance charges shall be expressed:
a. in terms of pesos and centavos
b. in a simple annual rate
c. in a compounded annual rate
d. in any currency
17. Corporation, partnership and ASSOCIATION are considered as "Person"
under Republic Act No. 3765 definition of terms.
a. True
b. False
18. According to Section 6(d) of this Act, NO punishment or penalty provided by
this Act shall apply to the Philippine Government or any agency or any
political subdivision thereof.
a. True
b. False
19. The legal SUCCESSOR or representative of an individual is considered as
"Person" under Republic Act No. 3765 definition of terms.
a. True
b. False
20. Any contract or arrangement for the HIRE, bailment, or leasing of property is
considered as "Credit" under Republic Act No. 3765 definition of terms.
a. True
b. False
 ANTI-MONEY LAUNDERING ACT QUIZ
RA 9160, AS AMENDED BY RA 9194

1. Money Laundering is a crime committed by any person knowing that any monetary
instrument or property represents, involves or relates to, the proceeds of any unlawful
activity.
a. True
b. False

2. Involves sending money through various financial transactions to change its form and
make it more difficult to follow.
a. Placement
b. Layering
c. Integration

3. The launderer inserts dirty money into a legitimate financial institution.

a. Placement
b. Layering
c. Integration

4. At this stage the money re-enters mainstream economy in legitimate-looking form,

appearing to have come from legitimate transaction.
a. Placement
b. Layering
c. Integration

5. Insurance companies and all other persons and entities not supervised and/or regulated
by the Insurance Commission is one of the covered entities.
a. True
b. False

6. Should a transaction be determined to be both a covered and a suspicious transaction, it

shall be reported as a covered transaction.
a. True
b. False

7. The Court of Appeals, upon application ex parte by AMLC and after determination that
probable cause exists that any monetary instrument or property is in any way related to
an unlawful activity, may issue a freeze order which shall be effective immediately (for a
period of 20 days unless extended by the court upon application by the AMLC).
a. True
b. False
8. Upon determination that probable cause exists that any monetary instrument or property
is in any way related to an unlawful activity or a money laundering offense, the AMLC
shall file with the regional trial court, through the Office of the Solicitor General, a verified
petition for:
a. Civil Forfeiture
b. Imprisonment
c. Fines
d. Imprisonment and Fines

9. This Act shall be known as the “Anti-Money Laundering Act of 2001.”

a. RA 9160
b. RA 9106
c. RA 9016
d. RA 9610

10. Anti-Money Laundering Council is composed of:

a. Chairman which is the BSP Governor
b. Commissioner of Insurance Commission
c. Chairman of SEC
d. All of the Above
e. None of the Above

11. To implement such measures as may be necessary and justified under RA 9160 to not
counteract money laundering.
a. True
b. False

12. Prohibited Accounts include (check those that are included):

a. Anonymous accounts and Accounts under fictitious names
b. Numbered Accounts
c. Lettered Accounts
d. Accounts under the name of Others
e. Accounts unidentified

13. Coins or currency of legal tender of the Philippines, or of any other country refers to:
a. Negotiable Instruments
b. Monetary Instruments
c. Bank Instruments

14. All records of all transactions of covered institutions shall be maintained and safely stored
for ___ years from the dates of transactions.
a. 10
 b. 5
c. 7
d. 3

15. Safe harbor means administrative, criminal, or civil proceedings, shall lie against any
person for having made a transaction report in the regular performance of his duties and
in good faith, whether or not such results in any criminal prosecution under Philippine
laws.
a. True
b. False

16. A transaction in cash or other equivalent monetary instrument involving a total amount
in excess of P500, 000 within one banking day.
a. Covered Transactions
b. Uncovered Transactions
c. Suspicious Transactions

17. Which of the following are included as unlawful activities under Anti-Money Laundering
Act? (Select all applicable choices)
a. Kidnapping for Ransom
b. Swindling
c. Hijacking
d. Destructive Arson
e. Online Sabong
f. Piracy

18. Refers to an amount derived or realized from an unlawful activity.

a. Payroll
b. Proceeds
c. Payment
d. Return on Investment

19. Refers to the appropriate supervisory or regulatory agency, department or office

supervising or regulating the covered institutions enumerated in Section 3(a)
a. Government Authority
b. Agency Authority
c. Supervising Authority
d. Council Authority

20. RA 9160 shall not be used for political persecution or harassment or as an instrument to
hamper competition in trade and commerce.
a. True
b. False
Unclaimed Balances Law

1. They Include credits or deposits of money, bullion, security, or other evidence of

indebtedness of any kind, and interest thereon with banks, buildings and loan
associations, and trust corporations, in favor of any person known to be dead or who has
not made further deposits or withdrawals during the preceding 10 years or more.

a. Dormant Accounts
b. Unclaimed Balances
c. Dead Accounts
d. Closed Deposits

2. Which of the following institutions is not covered by RA No. 3936 also known as
unclaimed balances law?

a. Banks
b. Trust Companies
c. Mutual Buildings and Loan Associations
d. Remittance Companies

3. Enumerate the institutions covered by RA No. 3936 also knows as unclaimed balances
law.
- Banks, Mutual Buildings, Loan Associations, Trust Companies
4. What petition may be filed by the Office of Solicitor General in behalf of the Republic of
the Philippines in order to forfeit unclaimed balances of a person who is dying intestate
and leaving no heir entitled to his estate?

a. Petition for quo warranto

b. Petition for Mandamus
c. Petition for certiorari
d. Petition for escheat

5. Which government agency has the authority to reactivate an unclaimed balance

account?
a. Bureau of Internal Revenue
b. Bureau of Treasury
c. Bureau of Customs
d. Bureau of Unclaimed Balances

6. What must be the minimum number of years for the deposit to be considered as
"Unclaimed Balances?”
a. at least 2 years
b. at least 5 years
c. at least 10 years
 d. at least 8 years
7. The approving authority to reactivate unclaimed balance account/s with an aggregate
amount not exceeding P100,000.
a. Division Chief/Head Law & Litigation Division Legal Service
b. Director of Legal Service
c. Deputy Treasurer of the Philippines
d. Treasurer of the Philippines
8. The approving authority to reactivate unclaimed balance account/s with an aggregate
amount exceeding P500,000 but not exceeding P1,000,000.
a. Division Chief/Head Law & Litigation Division Legal Service
b. Director of Legal Service
c. Deputy Treasurer of the Philippines
d. Treasurer of the Philippines
9. The approving authority to reactivate unclaimed balance account/s with an aggregate
amount exceeding P100,000 but not exceeding P500,000.
a. Division Chief/Head Law & Litigation Division Legal Service
b. Director of Legal Service
c. Deputy Treasurer of the Philippines
d. Treasurer of the Philippines
10. The approving authority to reactivate unclaimed balance account/s with an aggregate
amount exceeding P1,000,000.
a. Division Chief/Head Law & Litigation Division Legal Service
b. Director of Legal Service
c. Deputy Treasurer of the Philippines
d. Treasurer of the Philippines
11. Letter of Request of Debtor is the letter that shall be written by the depositor to his
depository bank to request for the activation of his account which was included in the
report of unclaimed balances to the Bureau of Treasury.
a. True
b. False
12. It is the letter issued by Bureau of Treasury through the authorized officer to authorize
the covered institution to reactivate the account.
a. Letter of Authority to Reinstate
b. Letter of Authority to Approve
c. Letter of Authority to Open
d. Letter of Authority to Reactivate
13. The requirement for the minimum number of days for the sworn statement to be posted
is for at least:
a. 60 days
b. 90 days
c. 120 days
d. 30 days
14. Information that will show in the copy of the sworn statement includes all of the following
except
a. The names and the last known place of residence or post office addresses of the
persons in whose favor such unclaimed balances stand.
 b. The amount and the date of the outstanding unclaimed balance whether the same is
in money or in security; and the nature of the same, if the latter.
c. The date when, the person in whose favor the unclaimed balances, made his first
deposit or withdrawal.
d. The interest due on such unclaimed balance, if any.
15. If the president or similar official of any bank, building, and loan association, or trusts
corporation neglects and refuses to cede the corresponding amount of unclaimed
balances required by the Act, such bank, building, and loan association, or trusts
corporation are liable to pay to the National government for each month which such
default shall continue in the amount of
a. P5,000
b. P15,000
c. P25,000
d. P50,000
16. The Depositor/creditor shall write his depository bank requesting for the reactivation of
his account which was included in the report of unclaimed balances to the Bureau of
Treasury.
a. Letter Request of the Covered Institution
b. Deed of Undertaking
c. Letter of Authority to Reactivate
d. Letter Request of Depositor/Creditor
17. What are the information required in the Sworn Statement?
- Name, Last known place of residence, Amount and Date of the outstanding unclaimed
balance, date when the person died, Date when he made his last withdrawal, Interest
due.
18. It is obligatory of every bank to report, in a sworn statement, to the Treasurer of the
Philippines (who will, in turn, inform the Solicitor General) information on the above
unclaimed balances.
a. True
b. False
19. Covered Institution refers to all banks, trust companies, savings and mortgage banks,
mutual building and loan associations, all banking institutions of every land, covered
under RA 3936, as amended by P.D 679, which reported to the Treasurer of the
Philippines as unclaimed, the account being applied for reactivation.
a. True
b. False
20. Who will initiate the proper escheat proceedings in the court?
a. Treasurer of the Philippines
b. Solicitor General
c. Both Solicitor General and Treasurer of the Philippines
d. Neither of the two
21. The authority to reactivate on unclaimed balance account/s shall be issued by the
following officers, except
a. Solicitor General
b. Director, Legal Service
c. Deputy Treasurer of the Philippines
d. Treasurer of the Philippines.
 INTELLECTUAL PROPERTY CODE OF THE PHILIPPINES

I. Enumeration
1. Office is divided into six (6) Bureaus. Enumerate all six.
2. Enumerate all intellectual property rights.
3. What are the qualifications for a Director General and Deputy Director General?
Give at least three.

II. Multiple Choice

4. Patents have an estimated useful life of how many?
a. Lifetime
b. 50 years
c. 20 years
d. 10 years

5. Trademarks have a duration of right for how many years?

a. Lifetime
b. 50 years
c. 20 years
d. 10 years

6. Statement 1: Technology transfer arrangement refers to to contracts or

agreements involving the transfer of systematic knowledge for the manufacture of
a product, the application of a process, or rendering of a service including
management contracts; and the transfer, assignment or licensing of all forms of
intellectual property rights, including licensing of computer software and computer
software developed for mass market.

Statement 2: One of the functions of the Bureau of Legal Affairs is to hear and
decide opposition to the application for registration of marks; cancellation of
trademarks; subject to the provisions of Section 64, cancellation of patents, utility
models, and industrial designs; and petitions for compulsory licensing of patents.
a. Only statement 1 is true
b. Only statement 2 is true.
c. Both statements are true.
d. Both statements are false.

7. Statement 1: The Administrative, Financial and Human Resource Development

Service Bureau four (4) separate functions, including its Administrative Service that
shall receive all applications filed with the Office and collect fees therefor.
 Statement2: The Financial Service shall formulate and manage a financial program
to ensure availability and proper utilization of funds; provide for an effective
monitoring system of the financial operations of the Office.
a. Only statement 1 is true
b. Only statement 2 is true.
c. Both statements are true.
d. Both statements are false.

8. Generally, rights are acquired through?

a. Registration
b. Continuous use
c. Prior use
d. Prescription

9. Intellectual property rights consist of:

I. Service marks
II. Geographic indications
III. Layout-designs of integrated circuits

a. I only
b. I and II only
c. I and III only
d. I, II, and III

10. The Intellectual Property Office is by a Director and Assistant Director.

a. True
b. False

11. The Director General, Deputies Director General, Directors, and assistant
Directors are appointed by?
a. President of the Corporation
b. President of the Philippines
c. President of China
d. President of the Office

12. Statement 1. The Director General and all Deputies Director General shall be
members of the Philippine Bar who have at least 10 years practice of law.
Statement 2: The Director General and all Deputies Director General have 10
years and 5 years term, respectively.
a. Only statement 1 is true
b. Only statement 2 is true.
 c. Both statements are true.
d. Both statements are false.

13. The Director General is empowered to obtain the assistance of technical, scientific
or other qualified officers and employees of other departments when deemed
necessary in the consideration of any matter submitted to the Office relative to the
enforcement of the provisions of this Act.
a. True
b. False

14. Where should trademarks be registered?

a. IPO
b. BPI
c. SEC
d. National Library

15. The Bureau of Patents includes all of the functions, except?

a. Search and examination of patent applications and the grant of patents.
b. Registration of utility models, industrial designs, and integrated circuits.
c. Conduct studies and researches in the field of patents in order to assist
the Director General in formulating policies on the administration and
examination of patents.
d. Promote the use of patent information as an effective tool to
facilitate the development of technology in the country.

16. What Republic Act is the Intellectual Property Code of the Philippines?
a. RA 8293
b. RA 8239
c. RA 8923
d. RA 8932

17. All officers and employees of the Office shall not apply or act as an attorney or
patent agent of an application for a grant of patent, for the registration of a utility
model, industrial design or mark nor acquire, except by hereditary succession, any
patent or utility model, design registration, or mark or any right, title or interest
therein during their employment and for one (1) year thereafter.
a. True
b. False
18. An officer of the Office acted as a patent agent in the application for a grant of
patent during their employment. Based on the act, this will lead to?
a. Nothing will happen since this is allowed.
b. The officer will be disqualified.
c. The officer will pay penalty of five thousand pesos.
d. None of the above.

19. A Mr. X, the Director General, was only able to finish three years of his term. Mr.
Y, the new Director General, was appointed. Based on the code, Mr. Y will have a
term of?
a. Mr. Y shall serve for a full term of 5 years.
b. Mr. Y shall serve for an additional 5 years term, which will give him a
total of 8 years.
c. Mr. Y shall serve for only the unexpired term of Mr. X, which is 2
years.
d. Any of the above.

20. Mr. Z died with a copyrighted book. Its copyright will last for?
a. Lifetime
b. 10 years after the death of the author.
c. 20 years after the death of the author.
d. 50 years after the death of the author.
 QUIZ 4: RA 1405 and RA 3936

1. RA 1405 aims to give encouragement to the people to deposit their money in

banking institutions and to _______.
a. Discourage private hoarding
b. Earn interest
c. Contribute to money cycle
d. Encourage hoarding
2. Any violation of RA 1405 will subject the offender upon conviction to an
imprisonment of exactly 5 years.
a. True
b. More than
c. Not more than
d. Only less than
3. All deposits of whatever nature with banks or banking institutions in the
Philippines may not be examined, EXCEPT upon:
a. Oral or written permission of the depositor
b. Order of a competent court
c. Both of these
d. None of these
4. These are the reasons wherein the court can order the examination or inquiry
of a deposit in a bank as stated in RA 1405, Sec. 2. (Choose 3)
a. Bribery of public officials
b. Dereliction of duties of public officials
c. The depositor has a direct financial interest in said bank
d. The money deposited or invested is the subject matter of the litigation
5. RA 1405 shall take effect upon its approval which was on?
a. September 19, 1955
b. September 19, 1952
c. September 9, 1952
d. September 9, 1955
6. The deposits being protected under RA 1405 excludes investments in bonds
issued by the Government of the Philippines.
a. True
b. False
7. Unclaimed balances include the following: (Choose 3)
a. Trust funds
b. Advance payments
c. Credits
d. Evidence of indebtedness
e. Bullion security
8. All banks shall forward a statement to the insular Treasurer for all unclaimed
balances showing:
a. The date when the person in whose favor the credit or deposit stands died, if
known, or the date when he made his last deposit or withdrawal
b. The amount and date of the outstanding credit or deposit and whether the
same is in money or security
c. The names and last known place of residence or post-office addresses of the
persons in whose favor such credit or deposits stand
d. The interest due on such credit or deposit, if any, and the amount thereof
9. Unclaimed balances shall be deposited with whom?
a. Insular treasurer, to the credit of the Government of the Philippine Islands
b. Philippine Deposit Insurance Corporation, to the credit of the Government of
the Philippine Islands
c. Insular treasurer, to the credit of Bank of the Philippine Islands
d. Philippine Deposit Insurance Corporation, to the credit of Bank of the
Philippine Islands
10. The branch of government that may direct the use of unclaimedbalances.
a. Executive
b. Judiciary
c. Legislative
d. All of the above
11. A statement of all unclaimed balances shall be forwarded by (all) banks to the
designated authority arranged in order of:
a. Date of deposits
b. Alphabetical order according to the names of depositors
c. Account number
d. Amount of deposits
12. An act requiring the transfer of unclaimed balances to the designated
authority.
a. Republic Act No. 3936
b. Republic Act No. 3765
c. Republic Act No. 9576
d. Republic Act No. 3963
13. The Insular treasurer shall have the duty to inform the Attorney-General______
of the existence of unclaimed balances.
a. each quarter of the year
b. every end of the year
c. once a month
d. from time to time
14. The Insular treasurer shall publish the statement of unclaimed balances in
________ newspapers of general circulation in the locality of the bank.
a. two
b. at least three
c. at least two
d. three
15. All credits and deposits are classified as unclaimed balances when a person is
known to be dead or who have not made further deposits or withdrawals
during the preceding __________.
a. 5 years or more
b. 10 years or more
c. more than 20 years
d. more than 50 years
16. What is the effectivity date of Republic Act No. 3936?
a. January 1, 1991
b. January 1, 1992
c. January 1, 1993
d. January 1, 1994
17. The Insular Treasurer shall publish a statement of unclaimed balances in
newspapers in the locality where the bank or banks are situated, if there be
any, and if there is none, in:
a. Any cities in Metro Manila
b. Any places in the Philippines
c. City of Manila
d. Every region of the Philippines
18. The publication of the Insular Treasurer shall be paid by the:
a. Commission on Audit
b. Regional Office
c. Treasury Bureau
d. Department of Budget and Management
19. Upon the completion of the publication of the summons and notice, theCOURT
shall have full and complete jurisdiction in the Philippine Islands,over the said
credit or deposits.
a. True
b. False
20. Any bank which shall make any deposit with the Insular Treasurer in
conformity with the provisions of this Act shall not thereafter be liable to any
person and shall be defended by the Attorney-General WITH COST
CHARGEABLE to such bank.
a. True
b. False
 RA 8293 – Intellectual Property Law
Quiz

1.) On April 2002, May applied for his invention a patent which was granted on June 2004.
When will the patent expire?
a. June 2024
b. April 2017
c. May 2012
d. No answer

2.) Stephen Curry, for the past three years, has been selling Shoes. His hoodies are known as
“Curry” and they feature a golden yellow with a black outline “SC” logo on the side of the
shoes. The shoes are well-known to the public as Curry and the logo as SC. Stephen
recently learned that another company is considering producing shoes similar to his own,
but with a bright yellow without an outline SC logo and intends to call it as "Curie”.
a. The name Curry is Stephen’s trademark
b. The logo SC is Stephen’s tradename
c. The name Curry is Stephen’s tradename and the SC logo is his trademark
d. No answer

3.) If the other company makes the shoes and sells them, it will have committed
a. Copyright infringement
b. Passing-off
c. Trademark infringement
d. No answer

4.) A ________ is a right in a new invention, a ________ is a right to manufacture an artistic

design, a ________ identifies a product or service, and a ________ is ownership in an
artistic or literary work.
a. patent; trade name; distinctive guise; certification mark
b. compulsory license; license; trademark; patent
c. patent; industrial design; trademark; copyright
d. industrial design; patent; trademark; copyright

5.) Jordan works for a major technology firm as a research technician. Jordan's employment
contract contains a confidentiality clause that forbids him from sharing confidential
company information. If Jordan discloses the company's confidential details, he would be
guilty of
a. Copyright infringement
 b. Patent infringement
c. Trademark infringement
d. No answer

6.) The following cannot be registered as trademark EXCEPT

a. Mark that Is contrary to public order or morality.
b. Mark which consists of color alone.
c. Mark which consists of signs that are not generic.
d. All of the above

7.) Statement 1: Genetic alterations in animals can be patented.

Statement 2: A trademark does not have to be registered to be protected.
a. Only Statement 1 is true
b. Only Statement 2 is true
c. Both of them are true
d. Neither of them is true

8.) Statement 1: Registration alone does not make a person the owner of a trademark.
Statement 2: There is no copyright of ideas
a. Only Statement 1 is true
b. Only Statement 2 is true
c. Both of them are true
d. Neither of them is true

9.) _______ means the process of translating as rendering text form one language to
another. ________ means the process of rendering or representing words, letter or
characters from one language to the corresponding words, letters or characters of
another language or alphabet.
a. Transliteration; Translation
b. Traslacion; Transliteration
c. Translation; Transification
d. Translation; Transliteration

10.) Element of a patent includes all of the following except

a. Novelty
b. Inventive Step
c. Innovative Process
d. Industrial Applicability
11.) It is the transfer of possession of the original or a copy of a work or sound
recording for a limited period, for non-profit purposes, by an institution the services of
which are available to the public, such as public library or archive.
a. Public Lending
b. Collective Work
c. Published Works
d. Communication to the public

12.) Works, which, with the consent of the authors, are made available to the public
by wire or wireless means in such a way that members of the public may access these
works from a place and time individually chosen by them: Provided, That availability of
such copies has been such, as to satisfy the reasonable requirements of the public, having
regard to the nature of the work.
a. Public Lending
b. Collective Work
c. Published Works
d. Communication to the public

13.) The person who so commissioned the work shall have ownership of work, but the
copyright thereto shall remain with the creator, unless there is a written stipulation to
the contrary.
a. True
b. False

14.) The purpose of copyright is to reward the labor of authors, but to promote the
progress of science and useful arts.
a. True
b. False

15.) What are the Rights Conferred by Copyright?

a. Copyright or Economic rights
b. Moral rights
c. Right to participate in the gross proceeds of the sale or lease of the original
work or droit de suite.
d. All of the above

16.) Any work of the Government of the Philippines is not protected by copyright.
a. True
b. False
17.) It is privilege, of persons other than the owner of the copyright, to use the
copyrighted material in a reasonable manner without his consent, notwithstanding the
monopoly granted to the owner by the copyright.
a. Fair trade
b. Fair Policy
c. Fair Use
d. None of the above

18.) Infringement means making, using, offering for sale, selling, or importing a
patented product or a product obtained directly or indirectly from a patented process, or
the use of a patented process without the authorization of the patentee.
a. True
b. False

19.) It is granted by the Director of Legal Affairs of a license to exploit a patented

invention even without the agreement of the patent owner in favor of any person who
has shown his capability to exploit the invention under certain circumstances.
a. Patent
b. Voluntary Licensing
c. Compulsory Licensing
d. Licensing
20.) It is granted by the patent owner to a third person of the right to exploit a patented
invention.
a. Patent
b. Voluntary Licensing
c. Compulsory Licensing
d. Licensing
 Truth in Lending Act

1. Mr. X is an agent of a car-dealing company. Mr. Y is thinking of buying a car for his wife and
he will buy it on credit. Since Mr. Y was so excited for the commission that he will receive
for selling the car, he forgot to disclose information like finance charges and the annual
percentage rate. Did Mr. Y violate the "Truth in Lending Act?"

Yes

Maybe

No

It will be up to the Board to decide

2. Mr. Z is the owner of the car-dealing company. It is the company's policy to fully disclose
prior to the consummation of the transaction a clear statement in writing every
information with regards to any kind of sale. Because of Mr. Y's negligence, Mr. Z is being
sued by Mr. X. Did Mr. Z violates the "Truth in Lending act?"

Yes

Maybe

No

It will be up to the Board to decide

3. Mr. X bought the car during April 7,2020. After a year and a half, he then realized that the
employee of the car-dealing company never disclosed to him the terms of the contract.
Can Mr. X still recovers such a penalty?

Yes

Maybe

No

It will be up to the Board to decide

4. How long is the period that the action to recover such a penalty must be taken?

2 years

1 year

6 months

1 year and 6 months

5. It is a person engaged in the business of extending credit (including any person who as a
regular business practice make loans or sells or rents property or services on a time, credit,
or installment basis, either as principal or as agent) who requires as an incident to the
extension of credit, the payment of a finance charge.

Debtor

Buyer

Board

Creditor

6. It means any individual, corporation, partnership, association, or other organized group of

persons, or the legal successor or representative of the foregoing, and includes the
Philippine Government or any agency thereof, or any other government, or of any of its
political subdivisions, or any agency of the foregoing

Debtor

Buyer

Person

Creditor

7. The declared policy behind the law is to protect the people from lack of awareness of the
true cost of credit by assuring full disclosure of such cost, with a view of preventing the
uninformed use of credit to the detriment of the national economy.
 True

False

8. XYZ Corporation bought ten (10) units of Honda Civic from CCC
Corporation. ABC Bank granted a loan to XYZ Corporation which executed a
financing agreement which provided for the principal amount, the installment
payments, the interest rates and the due dates. On due dates of the installment
payments, XYZ Corporation was asked to pay for some handling charges and other
fees which were not mentioned in the Financing Agreement. Can XYZ Corporation
refuse to pay the same?

No, because handling charges and other fees are usual in certain banking transactions.

Yes, because ABC Bank is required to provide XYZ Corporation not only the amount of
the monthly installments but also the details of the finance charges as required by the Truth
in Lending Act.

No, because the Finance Agreement is a valid document to establish the existence of
the obligation.

Yes, because legally, finance charges are never allowed in any banking transactions.

9. ABC Corporation is engaged in lending funds to small vendors in various public markets.
To fund the lending, ABC Corporation raised funds through borrowings from friends and
investors. Which statement is most accurate?

ABC Corporation is a bank

ABC Corporation is a quasi-bank

ABC Corporation is an Investment Company

ABC Corporation is none of the above

10. Entities engaged in the lending of funds obtained in the form of deposits from the public.
 Banks

Quasi Banks

Pawnshop

Commercial Banks

11. Any punishment or penalty under this law shall apply also to the Philippine
Government or any agency or any political subdivision thereof.

True

False

12. It includes interest, fees, service charges, discounts, and such other charges incident to
the extension of credit as may be prescribed by the Monetary Board of the Bangko
Sentral ng Pilipinas through regulations.

Interest Charges

Finance Charges

Service Revenue

None of the above

13. Republic Act No. 3765 also known as "Truth in Lending Act" was approved on *

July 22, 1963

July 12, 1963

June 22, 1963

May 12, 1963

14. The Truth in Lending Act promotes disclosure of loan terms.

 True

False

15. Any creditor shall furnish to each person to whom credit is extended, prior to the
consummation of the transaction, a clear statement in writing with the following
information except:

The cash price or delivered price of the property or service to be acquired

Down payment and/or trade in, if there is any;

The sum of the cash price/service and the down payment/trade in

Non-finance charges

16. Give at least three transactions that are covered by Truth Lending Act

- Loan, Mortgage, Deed of Trust, Rental-purchase contract, Conditional Sales Contract,

Leasing of Property, Purchase or other acquisition of, or any credit upon the security
if, any obligation of claim, arising out of any of the foregoing, Option, Demand, lien,
pledge, or other claim against, or for the delivery of, property or, money

17. Who governs all the registered banks situated in the Philippines?

Bank of Commerce

Department of Finance

House Commitee on Banks and Financial Intermediaries

Bangko Sentral ng Pilipinas

18. Who is the recent governor of Bangko Sentral ng Pilipinas?

Nestor Espenilla

Benjamin Diokno

Carlo Katigbak

Carlos Dominquez III

19. The penalty/ies that constitutes willful violation of RA 3765 is/are?

P1,000 to P5,000

not more than 1,000

Imprisonment for 1 to 2 years

Not more than P5,000 but more than P2,000

 Quiz 5: RA No. 8293

1. Voluntary assurance may include one or more of the following, except?

a. An assurance to comply with the provisions of the intellectual property law violated
b. An assurance to refrain from engaging in unlawful and unfair acts and practices subject
of the formal investigation
c. An assurance to recall, replace, repair, or refund the money value of defective goods
distributed in commerce
d. An assurance to reimburse the complainant the expenses and costs incurred in
prosecuting the case in the Bureau of Trademarks
2. The Intellectual Property Office (IPO) is divided into six (6) Bureaus. Which of the following
is not one of these bureaus?
a. Bureau of Patents
b. Bureau of Trademarks
c. Bureau of Copyrights
d. Bureau of Legal Affairs
3. As per Section 16 of RA No. 8293, the Office shall have a seal, the form and design of which
shall be approved by Deputies Director General.
a. True
b. False
4. What are the qualifications of the Director General and the Deputies Director General?
(Choose 3)
a. Natural born citizen
b. At least 35 years of age on the day of their appointment
c. College degree holder
d. Of proven competence, integrity, probity and independence
5. "Technological transfer arrangements" refers to contracts or agreements involving the
transfer of systematic knowledge for the manufacture of a product, the application of a
process, or rendering of a service including management contracts;
a. True
b. False
6. What are the functions of the IPO? (Choose 3)
a. Examine applications for grant of letters patent for inventions and register utility models
and industrial designs
b. Examine applications for the registration of marks, geographic indication, integrated
circuits
c. Promote the use of patent information as a tool for technology development
 d. Administratively adjudicate contested proceedings not affecting intellectual property
rights
7. An invention shall not be considered new if it forms part of a prior art.
a. True
b. False
8. The patent application shall be in Filipino or English and shall contain the following:
(Choose 3)
a. A request for the grant of a patent
b. A description of the invention
c. Drawings unnecessary for the understanding of the invention
d. An abstract
9. Statement 1: Copyright in a work of architecture shall include the right to control the
erection of any building which reproduces the whole or a substantial part of the work either
in its original form or in any form recognizably derived from the original.
Statement 2: Copyright in any such work shall not include the right to control the
reconstruction or rehabilitation in a different style as the original of a building to which the
copyright relates.
a. True, True
b. True, False
c. False, True
d. False, False
10. Statement 1: No copyright shall subsist in any work of the Government of the Philippines.
Statement 2: Prior approval of the government agency or office wherein the work is created
shall be necessary for exploitation of such work for profit
a. True, True
b. True, False
c. False, True
d. False, False
11. Any technical solution of a problem in any field of human activity which is new, involves
an inventive step and is industrially applicable
a. Mathematical methods
b. Patentable Inventions
c. Scientific theories
d. Non-Patentable Inventions
12. When five (5) persons have jointly made an invention, the right to a patent shall belong to
them jointly
a. True
b. False
13. The owner of a patent shall have the right to request the Bureau to make the changes in
the patent in order to: (Choose 3)
a. Limit the extent of the protection conferred by it
b. Broaden the extent of the protection conferred by it
c. Correct mistakes or errors made in good faith
d. Correct obvious mistakes or to correct clerical errors
14. The transfer of the possession of the original or a copy of a work or a sound recording for
a limited period of time, for profit-making purposes
a. Reproduction
b. Assignment
c. Rental
d. Succession
15. The making of one (1) or more copies, temporary or permanent, in whole or in part, of a
work or a sound recording in any manner or form without prejudice to the provisions of
Section 185 of this Act (Sec. 41 [E], P.D. No. 49a)
a. Reproduction
b. Assignment
c. Rental
d. Succession
16. Original intellectual creations in the literary and artistic domain are protected from the
moment of their creation. The following are examples of original intellectual creation,
except:
a. Books, pamphlets, articles and other writings
b. Letters
c. Musical compositions without words
d. All are original intellectual creation
17. Exercises original jurisdiction to resolve disputes relating to the terms of a license
involving the author’s right to public performance or other communication of his work.
a. The Bureau of Trademarks
b. The Bureau of Copyright and Other Related Rights
c. The Bureau of Legal Affairs
d. The Bureau of Patents
18. Searches and examines the applications for the registration of marks, geographic
indications and other marks of ownership and the issuance of the certificates of registration
a. The Bureau of Trademarks
b. The Bureau of Copyright and Other Related Rights
c. The Bureau of Legal Affairs
d. The Bureau of Patents
19. Anything which is contrary to public order or morality is non-patentable.
a. True
b. False
20. From the filing date of the application, the term of a patent shall be
a. 10 years
b. 15years
c. 20 years
d. 25 years
 Quiz 6: RA 9160

1. Statement I. Upon determination that probable cause exists that any deposit
or similar account is in any way related to an unlawful activity, the AMLC
may issue a freeze order, which shall be effective immediately, on the
account for a period not exceeding fifteen (15) days.
Statement II. The penalty of imprisonment from six (6) months to one (1) year
or a fine of not less than One hundred thousand Philippine pesos (Php
100,000.00) but not more than Five hundred thousand Philippine pesos (Php
500,000.00), or both, shall be imposed on a person convicted to fail to keep
records.

a) TRUE, TRUE
b) TRUE, FALSE
c) FALSE, TRUE
d) FALSE, FALSE

2. Statement I. The AMLC shall be provided with an initial appropriation of

Twenty-five million Philippine pesos (Php 35,000,000.00) to be drawn from
the national government.
Statement II. All records of all transactions of covered institutions shall be
maintained and safely stored for five (5) years from the date of transactions.

a) TRUE, TRUE
b) TRUE, FALSE
c) FALSE, TRUE
d) FALSE, FALSE

3. It is a crime whereby the proceeds of an unlawful activity are transacted;

thereby making them appear to have originated from legitimate sources.

a) Money transacting
b) Money washing
c) Money laundering
d) None of the above

4. Which of the following are rules that shall be observed in asset forfeiture
proceedings:
I. No prior criminal charge, pendency of a case, or conviction for an
unlawful activity or Money Laundering offense is necessary for the
commencement or the resolution of a petition for civil forfeiture.
 II. No asset shall be attached or forfeited to the prejudice of a candidate
for an electoral office during an election period.

a) I
b) II
c) I and II
d) Neither I nor II

5. It refers to a provisional remedy that allows the AMLC to examine or inquire

into particular bank accounts or investment with a bank or non-bank
financial institution.

a) Bank Inquiry
b) Bank Investigation
c) Bank Inquest
d) None of the above

6. The Anti-Money Laundering Council is hereby created and shall be

composed of:
I. The Governor of the Bangko Sentral ng Pilipinas
II. The Secretary of Finance
III. The Commissioner of the Insurance Commission
IV. The Chairman of the Securities and Exchange Commission

a) I, II, III
b) I, III, IV
c) I, II, IV
d) I, II, III, IV

7. Which of the following is true?

a) The AMLC may opt to maintain the confidentiality of Mutual Legal Assistance
(MLA) requests that they receive and the information contained in them, subject
to the requirements of the necessary legal remedies to execute them, in order
to protect the integrity of the investigation or inquiry.
b) The AMLC shall directly receive and act on MLA requests made on the basis
or reciprocity.
c) The depositor who received a notice of freeze order shall have 48 hours upon
receipt to explain why the freeze order should be lifted.
d) A criminal conviction for an unlawful activity is not a prerequisite for the
institution of a civil forfeiture proceeding.
8. Statement I. Covered institutions shall establish and record the true identity
of its clients based on official documents.
Statement II. The penalty of imprisonment ranging from 3 to 7 years and a
fine corresponding to not more than 200% of the value of the monetary
instrument or property laundered shall be imposed upon the covered
person, its directors, officers or personnel who knowingly participated in the
commission of the crime of money laundering.
Statement III. If the offender is a juridical person, the court may suspend or
revoke its license.

a) All statements are true.

b) All statements are false.
c) One statement is true
d) Two statements are true

9. Which of the following is one of the functions of AMLC?

a) to require and receive covered transaction reports from covered institutions
b) to institute civil forfeiture proceedings and all other remedial proceedings
through the Office of the Solicitor General
c) to freeze any monetary instrument or property alleged to be proceed of any
unlawful activity
d) all of the above

10. The following statements are the requirements for requests for mutual
assistance from Foreign State except;
a) State the grounds on which any person is being investigated or prosecuted for
money laundering or the details of his conviction
b) Confirm that an investigation or prosecution is being conducted in respect of a
money launderer named therein or that he has been convicted of any money
laundering offense
c) Give particulars sufficient to identity any covered institution believed to have
any information, document, material or object which may be of assistance to
the investigation or prosecution
d) None of the above

11. Which of the following is one of the functions of AMLC?

a) to require and receive covered transaction reports from covered institutions
b) to institute civil forfeiture proceedings and all other remedial proceedings
through the Office of the Solicitor General
 c) to freeze any monetary instrument or property alleged to be proceed of any
unlawful activity
d) all of the above

12. The following statements are the requirements for requests for mutual
assistance from Foreign State except:
a) State the grounds on which any person is being investigated or prosecuted
for money laundering or the details of his conviction
b) Confirm that an investigation or prosecution is being conducted in respect
of a money launderer named therein or that he has been convicted of any
money laundering offense
c) Give particulars sufficient to identity any covered institution believed to have
any information, document, material or object which may be of assistance
to the investigation or prosecution
d) None of the above

13. The following are the stages of money laundering: (Choose 3)

✓ Placement
✓ Layering
✓ Integration
▪ Freezing
▪ Depositing

14. A fishball vendor deposited Php 350, 000 in a bank on July 31, 2020. What
report will be prepared by the Bank, if any?
a) Covered transaction because it exceeds to the maximum depository
transaction 200,000
b) Suspicious transaction because there is no underlying legal or trade
obligation, purpose, or economic justification
c) Covered transaction because it exceeds to the maximum depository
transaction of 300,000
d) Suspicious transaction because the transaction is not commensurate to the
business of the client

15. Reporting of the content of a transaction which is observed to deviate from

the profile of the client and/or the client's past transaction with the covered
institution is a violation to:
a) Anti-Money Laundering Act
b) Bank Secrecy Law
c) Unclaimed Balances Law
 d) None of the above

16. Which of the following are the covered entities of RA 9160: (Choose 3)
▪ Jewelry dealers, for transactions in excess of P500,000
▪ Land Registration Authority and all of its Register of Deeds on all real estate
transaction with price exceeding P 1,000,000
✓ Mutual funds or open-end investment companies
✓ Quasi-banks supervised and regulated by the Bangko Sentral ng Pilipinas
✓ Ship-based casinos

17. According to Section 9 of Anti-Money Laundering Act, the following

accounts are prohibited: (Choose 3)
✓ Anonymous accounts
✓ Accounts under fictitious names
✓ Numbered accounts
▪ Peso non-checking numbered accounts
▪ Foreign non-checking numbered accounts

18. Are CPAs and Lawyers included in covered entities of RA 9160?

a) Yes, because they are acting as independent legal professionals
b) Yes, even if the disclosure of information will compromise client confidences
c) Yes, if they are acting as a formation agent of juridical persons
d) Yes, because they do not manage their client's money, securities or other
assets

19. These refer to those accounts, the funds, and sources of which originated
from and/or materially linked to the monetary instruments or properties
subject to freeze orders.
a) Related Web of Accounts
b) Non-checking Numbered Accounts
c) Serial Accounts
d) Relative Branch Accounts

20. A covered transaction shall be reported within FIVE (5) working days from
occurrence, while suspicious transaction shall be filed within the next
working DAY from occurrence.
a) True
b) False, covered transaction shall be reported within 7 days from occurrence
c) False, suspicious transaction shall be filed within the next working month
from occurrence
 d) False, covered transaction shall be reported within 7 days from occurrence
while suspicious transaction shall be filed within the next working week f rom
occurrence

21. A court order is not necessary when the offense or unlawful activity
involved is the following, except:
a) Kidnapping for ransom
b) Hijacking
c) Terrorism
d) Swindling or estafa

22. It is a stage of money laundering wherein the launderer inserts dirty money
into a legitimate financial institution.
a) Placement
b) Layering
c) Integration
d) Freezing
e) Depositing
Intellectual Property Law (RA 8293, As Amended by RA 10372)
1. It refers to certain goods as goods originating from the territory of a specific country,
region or a locality within such territory, where specific quality, reputation or other
characteristics of the goods can be essentially attributed to their origin location.
a. Topographies
b. Geographic Indications
c. International Border Mark
d. Cross-Border Doctrine
2. The Intellectual Property Law is composed of how many parts?
a. 6 parts
b. 5 parts
c. 7 parts
d. 8 parts

3. It means any visible sign designated as such in the application for registration and
capable of distinguishing the origin or any other common characteristic, including the quality of
goods or services of different enterprises which use the sign under the control of the registered
owner of it.
a. Mark
b. Collective Mark
c. Trade mark
d. Symbol

4. It is synonymous with ‘Topography’ and means the three-dimensional .disposition,

however expressed, of the elements, at least one of which is an active element, and of some or
all of the interconnections of an integrated circuit, or such a three-dimensional disposition
prepared for an integrated circuit intended for manufacture.
a. Integrated Circuit
b. Industrial Design
c. Layout-Design
d. Substantive Design

5. Statement 1: if two or more persoons separately made the same invention, priority is given to
one who filled first, even if the late filer may have actually invented it first.
Statement 2: A patent application need not specifically lay down its claims, i.e., matters for
which protection is sought. Otherwise, disclosure of the claims may lead to unnecessary leak of
patent invention
a. Only statement 1 is true
b. Only statement 2 is true
c. Both statements are true
d. Both statements are false

6. An invention involves an inventive step,if having regard to prior art:

a. It is not replicable by a person skilled in the art
 b. It is not replicable by any person
c. It is not obvious to a person skilled in the art
d. It is not obvious to any person

7. How may the rights in a mark be acquired?

a. Trademark rights are acquired through intellectual creation
b. Trademark rights are acquired through registration
c. Trademark rights are acquired from the moment of creation
d. Trademark rights are acquired through first use and adoption of the mark

8. The following are the works that cannot be protected except:

a. Idea
b. Procedure
c. Concept
d. Letters
9. This refers to a work which has been created by two (2) or more natural persons at the
initiative and under the direction of another with the understanding that it will be disclosed by the
latter under his own name and that contributing natural persons will not be identified.
a. Published Works
b. Public Lending
c. Collective Work
d. None of the above

10. Under the Intellectual Property Code, lectures, sermons, addresses or dissertations
prepared for oral delivery, whether or not reduced in writing or other material forms, are
regarded as
a. Non-original works
b. Original works
c. Derivative works
d. Not subject to protection

11. Compulsory Licensing of Inventions which are duly patented may be dispensed with or will
be allowed exploitation even without agreement of the patent owner under certain
circumstances, like national emergency, for reason of public interest, like national security, etc.
The person who can grant such authority is -
a. The Director General of the Intellectual Property Office
b. The Director of Legal Affairs of the Intellectual Property Office
c. The owner of the Patent right
d. Any agent of the owner of the Patent right

12. Which of the following is not a requisite for an invention to be patented?

a. Novelty
b. Ornamentality
 c. Inventive Step
d. Industrial Applicability

13. How long is the term of protection for patents?

a. 10 years
b. 20 years
c. 30 years
d. 50 years

14. In accounting, copyright is considered to have an unlimited useful life.

a. True
b. False

15. Which of the following is not a ground for compulsory licensing?

a. National emergency/circumstances of extreme urgency

b. Invention is not being worked in the Philippines on a commercial scale without
satisfactory reasons.
c. Competitive use
d. Demand for patented drugs and medicine is not being met to an adequate extent.

16. Copyright covers

a. Inventions
b. Literary or artistic works
c. Brand
d. Utility Models

17. From copyrightable works, when does protection commence?

a. From the moment of creation
b. From the moment of application
c. From the moment of registration with the IPO
d. From the moment of first commercial use

18. How long does a trademark last?

a. 5 years from registration

b. 10 years from registration
c. 15 years from registration
d. 20 years from registration

19. How are rights over a mark acquired?

 a. Through registration
b. Through continuous use
c. Through prior use
d. Through prescription

20. How long does rights to a copyright last?

a. Lifetime then 50 years after the death of the author

b. 50 years
c. Lifetime
d. 20 years
Anti-Money Laundering Act(RA 9160, As Amended by RA 9194)
1. The following are ‘Unlawful Activities’ as described under RA 9160 except;
a. Smuggling
b. Destuctive Arson and Murder
c. Smuggling
d. Slander
2. The_________ shall have jurisdiction to try all cases on money laundering.

a. Regional Trial Court

b. Municipal Court
c. Any court of Law
d. Anti-Money Laundering Council

3. The following are the circumstances exist in the suspicious transactions except:
a. There is no underlying legal/trade obligation, purpose or economic justification;
the client is not properly identified;
b. The amount involved is not commensurate with the business or financial capacity
of the client;
c. The transaction is related to an unlawful activity/offense under the AMLA;
d. None of the above

4. As amended by R.A. 10365, the freeze order issued by the court, unless extended by
them, shall not exceed for a period of
a. Six (6) months
b. One (1) month
c. Twenty (20) days
d. Fifteen (15) days

5. The Anti-Money Laundering Law is a law that seeks to prevent money laundering activities by
providing for more transparency in the Philippine Financial System, hence the following
institutions are covered by the law, except
a. Bank and any financial institutions
b. Pawnshops
c. Casino Operators
d. All of the above

6. For purposes of determining violation of the provision of Anti-Money Laundering Law, a

transaction is considered as a “Suspicious Transaction” with “Covered Institutions” regardless of
the amount involved, where which the following circumstances exist/s?
a. The amount involved is not commensurate with the client’s business or financial capacity
b. There is no underlying legal or trade obligation, purpose or economic justification
c. Client is not properly identified
d. All of the above
7. What is the covered transaction under the Anti- Money Laundering Act?
 a. Covered transactions are single transactions in cash or other equivalent
monetary in-strument involving a total amount in excess of Five Hundred
Thousand (P500,000) Pesos within one (1) banking day.
b. Covered transactions are single transactions in cash or other equivalent monetary
in-strument involving a total amount in excess of Four Hundred Thousand (P400,000)
Pesos within one (1) banking day.
c. Covered transactions are single transactions in cash or other equivalent monetary
in-strument involving a total amount in excess of Three Hundred Thousand (P300,000)
Pesos within one (1) banking day.
d. Covered transactions are single transactions in cash or other equivalent monetary
in-strument involving a total amount in excess of Two Hundred Thousand (P200,000)
Pesos within one (1) banking day.

8. What are the covered institutions mandated by the AMLA to submit covered and suspicious
transaction reports to the AMLC?

a. Banks and all other entities, including their subsidiaries and affiliates, supervised and
regulated by the Bangko Sentral ng Pilipinas.
b. Insurance companies, pre-need companies and all other institutions supervised or
regulated by the Insurance Commission.
c. Securities dealers and other entities supervised or regulated by the Securities and
Exchange Commission.
d. All of the above.

9. What are the three (3) stages of Money Laundering?

- Placement , Layering , Integration

10. Statement 1: all records of all transactions of covered institutions shall be maintained and
safely stored for 10 years from the date of the transactions under the AMLA.
Statement 2: if the report of a covered institution does not result to any criminal prosecution
under the AMLA, the person reported may file a suit against the reporting institution for violation
of the law on secrecy of bank deposits.
a. Only statement 1 is true
b. Only statement 2 is true
c. Both statements are true
d. Both statements are false.
11. For a transaction in a casino to be included as a covered transaction, the single cash
transaction must be in excess of:
a. P500,000
b. P5,000,000
c. $500,000
d. $5,000,000

12. Covered institutions shall report to the AMLC all covered transactions within
a. 5 working days from occurrence thereof
 b. 10 working days from occurrence thereof
c. 15 working days from occurrence thereof
d. 20 working days from occurrence thereof

13. Juan is considering stealing something from a bypasser. He then successfully committed a
theft by stealing the bypasser’s phone, completely unrelated to him. Is the unlawful activity
committed under the AMLA?

a. Yes
b. No
c. Maybe

14. A court order is necessary for every unlawful activity committed under AMLA.

a. True
b. False

15. All records of transactions of covered institutions shall be maintained and safely stored for 5
years from the date of transactions.

a. True
b. False

16. All are parts of the minimum customer information and identification documents except:

a. Name
b. Age
c. Contact no.
d. Date and Place of Birth

17. A shell company is an incorporated company that possesses significant assets and
performs significant operations.

a. True
b. False

18. A jewelry dealer is a covered entity under AMLA even if the transaction is not in excess of
P1M.

a. True
b. False

19. Chitanda is an owner of a big farming land. One of her workers committed a theft of
agricultural produce and sold it to the market. Is the unlawful activity covered under AMLA?
 a. Yes
b. No
c. Maybe

20. Theft with no intimidation or violence were committed with the intent to gain is an unlawful
activity covered under AMLA.

a. Yes
b. No
c. Maybe
 POLYTECHNIC UNIVERSITY OFTHE PHILIPPINES

Truth in Lending Act Quiz

Submitted by:
Concepcion, Sophia Mae S.
Dela Cruz, Allyza Jane B.
Estrada, Arliah Mae F.
Falloria, Sofia R.
Nojor, Jerniel M.
Reyes, Caryl Joyce P
Salazar, Yoden

Atty. Paul Braga

Law 20033
Regulatory Framework and Legal Issues in Business

2021
 POLYTECHNIC UNIVERSITY OFTHE PHILIPPINES
LINK TO GOOGLE FORM:
https://docs.google.com/forms/d/e/1FAIpQLSdpL4w_4IvH9R7qjnlCELL0G9dveTzFWJk
Tn7HgdmuLaPoJBw/viewform

1. A creditor who lends money to a debtor willfully violates the provisions of

R.A.No.3765. Due to the violation, Penalties; such as fined by not less than Php
100 or more than Php50,000 or imprisonment of not less than 6 months, nor more
than 2 years or both, is issued to the creditor.
o TRUE
o FALSE

2. Based on the definition given by this act for the word “credit”, which of the following
term is not included.
o Contract to Sell
o Loan
o Mortgage
o None of the above

3. According to the R.A 3765, this law should covers any Creditor. Based on the
definition given on the law, which person is not define as Creditor.
o An agent who sells or rents property on a time, credit or installment basis.
o Person’s regular business practice is to make loan
o An agents who buys property on time, credit or installment basis.
o None of the above

4. Represents the amount paid by the debtor at the time of the transaction in partial
payment for the property or service purchased
o Delivery Price
o Down Payment
 POLYTECHNIC UNIVERSITY OFTHE PHILIPPINES

o Pesos and centavos

o Finance Charge

5. This Act shall be known as the "Truth in Lending Act

o Republic Act No. 3675
o Republic Act No. 3567
o Republic Act No. 3756
o Republic Act No. 3765

6. Statement I: Trade in represents the value of an asset agreed upon by the bank
and debtor, given at the time of the transaction in partial payment for the property
or service purchased Statement II: Non-finance charges correspond to the
amounts advanced by the bank for items normally associated with the ownership
of the property.
o Statement I is true while statement II is false
o Statement II is true while statement I is false
o Both statements are true
o Both statements are false

7. Statement 1. Any person who willfully violates any provision of this Act or any
regulation issued thereunder shall be fined by not less than P1,000 or more than
P5,000 or imprisonment for not less than 6 months, nor more than one year or
both. Statement 2. No punishment or penalty provided by this Act shall apply to
the Philippine Government or any agency or any political subdivision thereof.
o Both statements are correct
o Both statements are incorrect
o Only Statement 1 is correct
o Only statement 2 is correct
 POLYTECHNIC UNIVERSITY OFTHE PHILIPPINES

8. The following are stated in RA 3765 sec. 4 EXCEPT

o the cash price or delivered price of the property or service to be acquired;
o the amounts, if any, to be credited as down payment and/or trade-in;

o the difference between the amounts set forth under clauses (A) and (D);
o the charges, individually itemized, which are paid or to be paid by such
person in

9. A final judgment hereafter rendered in any criminal proceeding under this Act to
the effect that a defendant has willfully violated this Act shall be prima facie
evidence against such defendant in an action or proceeding brought by any other
party against such defendant under this Act as to all matters respecting which said
judgment would be an estoppel as between the paries thereto.
o TRUE
o FALSE

10. Choose the correct answer. Statement I: The borrower has a right to demand a
copy of the disclosure statement. Statement II: The disclosure statement in writing
is not a required attachment to the credit transaction contract.
o Statement I is true while statement II is false
o Statement II is true while statement I is false
o Both statements are true
o Both statements are false

11. Which is not included in the definition of terms in this Act?

o Board
o Debit
o Credit
o Person
 POLYTECHNIC UNIVERSITY OFTHE PHILIPPINES

12. In what terms should the finance charge be expressed?

o Pesos only
o Centavos only
o Pesos and centavos
o Dollars

13. All of the following are the required minimum information to be disclosed to the
borrower, except:
o Loan amount
o Schedule of payments
o Declaration of policy
o None of the above

14. A ________ is referred as the person engaged in the business of extending credit.
o Trustee
o Debtor
o Agent
o Creditor

15. Conditional charges discounts estimated future cash flows through the life of the
loan to the net amount of loan proceeds.
o TRUE
o FALSE

16. These are information needs to be disclosed under TILA except:,

o The cash price or delivered price of the property or service to be acquired;
o The amounts, if any, to be credited as down payment and/or trade-in;
o The difference between the amounts set forth under clauses (1) and (2);
o The total amount to be financed;
 POLYTECHNIC UNIVERSITY OFTHE PHILIPPINES

o The finance charge expressed in terms of pesos and centavos; and

o None of the Above

17. Statement I: Simple Annual Rate represents the amount paid by the debtor at the
time of the transaction in partial payment for the property or service purchased.
Statement II: Down Payment are payment for certain period (payable in one year)
is a fixed percentage of the principal amount that was borrowed or lent.
o Statement I is not correct
o Statement II is not correct
o Statement I & II is not correct
o Statement I & II is not incorrect

18. Circular No.730- Truth and Transparent Loan Pricing and Disclosure -The circular
issued by the BSP to amend the rules to implement the Truth in Lending Act. It
aims to enhance loan price transparency and improve creditor disclosure
practices.
o TRUE
o FALSE
PDIC QUESTIONS:

1. The functions of PDIC include the following except:

a. Deposit Insurer
b. Revenue collector
c. Co-regulator of Banks
d. Receiver and Liquidator of Close Banks
2. Based on PDIC Act Section 3, the board of directors of the Corporation shall be
composed of seven members. Which of the following is not included in the
composition of the PDIC-Board?
a. Governor of the Bangko Sentral ng Pilipinas
b. Four members from the public sector to be appointed by the President of the
Philippines.
c. Secretary of the Department of Finance
d. President of the PDIC, as appointed by the President of the Philippines.
3. This is the only valid ground in which the Corporation, its duly authorized officers
and employees, may examine, inquire or look into deposit records of a bank when
there is a failure of prompt corrective action as declared by the Monetary Board.
a. Capital Deficiency
b. Request of Bank
c. Request of Depositor
d. None of the choices
4. The couple Ian and Ivan Pangilinan have the following account balances with
Banco de Oro:
Ian Pangilinan P500,000
Ivan Pangilinan P500,000
Ian Pangilinan and/or Ivan Pangilinan P500,000

Which is/are true about the given information?

i. All the 3 accounts are insured because the deposits are maintained in different
rights and capacities.
ii. A joint account shall be insured separately from any individually-owned deposit
account.
iii. Ian Pangilinan would recover P500,000 from PDIC
iv. Ivan Pangilinan would recover P750,000 from PDIC
a. i, ii, and iv
b. ii, and iii
c. ii, iii, and iv
d. i and ii only
5. The bank records of Bank Friends show the following accounts and their balances:
Rachele and/or Monica P500,000
Rachele and/or Joey P500,000
Rachele and/or Chandler P500,000

Which of the following are true?

i. Each account is insured
ii. Rose can recover P750,000 from PDIC
iii. Rose can recover P500,000 from PDIC
iv. The aggregate interest of each co-owner over several joint accounts, whether
owned by the same or different combinations of individual, juridical or natural,
shall likewise be subject to the maximum insure deposits of P500,000
a. i, ii, iii & iv
b. i, ii, & iv
c. i, iii, & iv
d. iv onlu
6. The Corporation may conduct study on the need to adjust the amount of the
Permanent Insurance Fund, insurance cover, and assessment rate and
assessment base and thereafter make the necessary recommendation to whom?
a. President of the Philippines
b. Senate
c. Juridical court
d. Congress
7. In connection to question #7, when can the Corporation conduct study on the need
to adjust the amount of funds?
a. Every 3 years
b. Every 5 years
c. Every 2 years
d. Every 7 years
8. What are the modes of payment of insured deposits in closed bank?
i. Cash
ii. Deposit slip
iii. Credit
iv. By making available to depositors a transferred deposit in other
insured bank in an amount equal to insured deposit.
a. i only
b. i and iii
c. i, ii, and iii
d. i, ii, iii, and iv
9. Funds and asset of the corporation shall be invested, if not employed, in all of the
following except
a. Obligations of Republic of the Philippines
b. Debt Instrument in foreign currency issued by Republic of Philippines
c. Obligations guaranteed as to principal only
d. Freely convertible foreign currency issued by any supranationals, etc
10. PDIC is authorized to issue the following:
i. Debentures
ii. Bonds
iii. Government Securities
iv. Other obligations, both local and foreign as may be necessary
a. i only
b. ii and iv only
c. i, ii, iv
d. i, ii, iii, iv
 TRUE OR FALSE QUESTION:

1. Statement 1: Each insured bank shall pay to the corporation the amount of the
semi-annual assessment it is required to certify.
Statement 2: Each bank which becomes an insured bank is required to file any
certified statement or pay any assessment for the semi-annual period.
a. All statements are correct.
b. Statement 1 is true, Statement 2 is false
c. Statement 1 is false, Statement 2 is true
d. All statements are false
2. The total share of a co-owner in several joint accounts may exceed P500,000 but
will only be insured up to the Maximum Deposit Insurance Coverage of P250,000.
3. Joint Accounts held in the names of Juridical entity and a natural person shall be
presumed to belong solely to the natural person.
4. The PDIC shall promote and safeguard the interests of the depositing public by
providing insurance coverage on all insured deposits as part of its basic policy.
5. Statement 1: PDIC pays deposit insurance on all valid deposits up to the Maximum
Deposit Insurance Coverage (MDIC) of P250,000
Statement 2; For purposes of computing the insured deposits, all obligations or
loans of the depositor with the closed bank, as of bank closure shall be added from
the depositor’s total deposits with the said bank
Statement 3: Deposits are considered valid if, upon determination by PDIC, these
deposits are recorded in the bank’s records, and are evidenced by inflow of cash.

a. All statements are correct.

b. Only 1 statement is correct
c. Only 2 statements are correct
d. All statements are false
6. Banks closed by the Monetary Board can still be rehabilitated if the Board made a
petition.
 7. The two modes of liquidation are; Conventional Liquidation and Purchase of assets
and/or assumption of liabilities.
8. Disposition of licenses shall be subject to approval of Monetary Board.
9. All assets which remain unclaimed by the creditors and/or stockholders of record
shall be turned over to the Bangko Sentral ng Pilipinas.
10. Permanent Insurance File shall be P3,000,000,000.

ANSWER KEY

MCQs

1. B. 6. D.

2. B. 7. B.

3. A. 8. D.

4. A. 9. C.

5. C. 10. C.

TRUE OR FALSE

1. B. 6. False

2. False; P500,000 7. True

3. False; Juridical Entity 8. False; BSP

4. True 9. False; Bureau of Treasury

5. B. - Statement 3 10. True

RA No. 3567 Questions
1. Lenders are required to provide consumers with information relating to ______.
a. Banks
b. Debt
c. Money
d. Loan Costs
2. Which of the following is the general principle behind the Truth in Lending Act?
a. Disclose to borrowers the true cost of borrowing money
b. Reduce the paperwork burden for real estate professionals
c. Decrease the total costs of borrowing money
d. Prevent borrowers from making fraudulent income statements to obtain a
mortgage
3. Which government agency currently has regulatory oversight over the Truth in
Lending Act?
a. The Consumer Financial Protection
b. The Federal Reserve
c. The Monetary Board of the Central Bank of the Philippines
d. The Supreme Court
4. Liquidation of a loan in equal installments that include principal and interest is
called:
a. Acceleration
b. Redemption
c. Compounding
d. Amortization
5. The primary difference between an amortized loan and a straight-term loan is in
the:
a. Interest rate
b. Number of discount points
c. Pre-payment penalties
d. Method of repaying principal
6. Under a graduated payment loan which of the following items changes over
time?
a. The interest rate
b. The monthly payment
c. The payoff-period
d. The amount of the release fee
7. Finance Charge includes all of the following except:
a. Savings
b. Interest
c. Service charge
d. Discount
8. The following are not subject to the penalties imposed by the “Truth in Lending
Act” except:
 a. The Philippine Government,
b. Different Departments of the Government
c. Any political branch
d. Banks
9. Any person who intentionally breaches any clause of Republic Act 3567 or any
rule issued thereunder is subject to a fine of _____.
a. not less than P1,000 and not more than P5,000
b. to imprisonment for not less than 6 months and not more than one year.
c. Both a and b
d. P100 or twice the finance paid by such creditor in connection with such
transaction, whichever is greater, provided that such responsibility shall not
exceed P2,000 on any credit transaction.
10. The term “Board” means _____.
a. Board of Directors
b. Monetary Board of the Central Bank of the Philippines
c. Board of Accountancy
d. Board of Governors

True or False Questions

1. “Truth in Lending Act” states that no loan originator may receive, directly or
indirectly, compensation in any amount based on a "term of transaction". A term
of transaction is the loan amount.
2. If a consumer with a right to cancel exercises this right within the cancel period,
we must unwind the transaction and make the consumer whole - as if they never
applied for the loan.
3. Prior to the consummation of the contract, any creditor shall provide to each
party to whom credit is extended a plain declaration in writing setting out, to the
degree applicable and in compliance with the Board's rules and regulations.
4. The Truth in Lending Act promotes disclosure of loan terms.
5. Any borrower who fails to report to any person any details in connection with a
credit transaction in violation of this Act or any rule issued thereunder shall be
liable to any person in the amount of P100 or twice the finance paid by such
creditor in connection with such transaction, whichever is greater, provided that
such responsibility shall not exceed P2,000 on any credit transaction.
6. Statement 1: "Creditor" means any person engaged in the business of extending
credit (including any person who as a regular business practice make loans or
sells or rents property or services on a time, credit, or installment basis, either as
principal or as agent) who requires as an incident to the extension of credit, the
payment of a finance charge.
 Statement 2: "Person" means any individual, corporation, partnership,
association, or other organized group of persons, or the legal successor or
representative of the foregoing, and includes the Philippine Government or any
agency thereof, or any other government, or of any of its political subdivisions, or
any agency of the foregoing.
a. The first statement is FALSE
b. Both statements are TRUE
c. The second statement FALSE
d. Both statements are FALSE
7. The State protects its citizens from a lack of awareness of the true cost of credit
to the customer by assuring a vague disclosure of such cost and other terms and
conditions with a view of preventing the uninformed use of credit.
8. After to the consummation of the contract, any creditor shall provide to each
party to whom credit is extended a plain declaration in writing setting out, to the
degree applicable and in compliance with the Board's rules and regulations.
9. According to the statute any person in the business of extending loans, or selling
or renting property or services on a time, credit, or installment basis, either as
principal or as agent, is required to make the same written disclosure.
10. The percentage that the finance charge bears to the total amount to be financed
expressed as a simple annual rate on the outstanding unpaid balance of the
obligation is to be included in the written declaration.

Key Answers
Multiple Choice
1. B 6. B
2. A 7. A
3. C 8. D
4. D 9. C
5. D 10. B

True Or False
1. FALSE 6. B.
2. TRUE 7. FALSE
3. TRUE 8. FALSE
4. TRUE 9. TRUE
5. FALSE 10. TRUE
Multiple Choice Questions

1. The following are the exceptions to the Bank Secrecy Law under Section 2 of RA
No. 1405, except:
a. Upon written or oral permission of the depositor.
b. Impeachment cases
c. In cases where the money deposited is the subject matter of litigation
d. Upon order of a competent court in cases of bribery or dereliction of public
officials.
2. All deposits of whatever nature with banks or banking institutions in the Philippines,
including investments in bonds issued by the government, are considered:
I. Absolutely Confidential
II. May not be examined, inquired or looked into by any person, governmental
official, bureau or office
III. Any official or employee of a banking institution may disclose to any person
of any information concerning said deposits.
a. I only
b. II only
c. I and II
d. I, II and III
3. What are the accounts covered in the Secrecy of Bank Deposits?
a. Savings account, checking account and money markets
b. Savings account, checking account, and other types of bank deposits
c. Savings account, checking accounts, and trust funds
d. Savings account, checking account, and mutual funds
4. What will happen to any violation of the Law on Secrecy of Bank Deposits?
a. Imprisonment of not more than five years
b. A fine of not more than P20,000
c. Neither of the two.
d. A and B
5. A government policy to give encouragement to the people to deposit their money
in banking institutions and to discourage private hoarding so that the same may be
properly utilized by banks in authorized loans to assist in the economic
development of the country.
a. Secrecy of Bank Deposits
b. Republic Act No. 1504
c. Foreign Currency Deposit Act
d. AMLA
6. When is the approval of Republic Act No.1405?
a. September 15, 1995
b. September 10, 1995
c. September 5, 1995
d. September 1, 1995
7. Which of the following circumstances also constitute exceptions to the Secrecy of
Bank Deposits?
a. Upon order of the competent court or tribunal in cases involving unexplained
wealth under the Anti-Graft and Corruption Practices Act RA 3019
b. Upon inquiry by the Commissioner of Internal Revenue for the purpose of
determining the net estate of a deceased depositor
c. Disclosure to the Treasurer of the Philippines for dormant deposits for at least
ten (10) years under the Unclaimed Balances Act (RA No. 3936)
d. All of the above.
8. What happens when the depositor dies and the spouse or dependent requests to
withdraw the funds?
a. The tax code allows banks to freeze the deceased depositor’s account until the
Estate Tax Clearance from the BIR is submitted.
b. The withdrawal will be granted even the Estate Tax has not yet been paid.
c. If the amount is not more than P200,000, it is subject to Estate Tax, and the
spouse or dependent is mandated by law to pay a certain percentage for the
amount deposited.
 d. The deposit is considered tax-exempt if it is more than P200,000, and the
spouse or dependent only needs to submit documents such as marriage
certificate, birth certificate, and certificate of deposit to withdraw the account.
9. What law protects all deposits whatever nature in banks or banking institutions in
the Philippines as well as investments in government bond?
a. Foreign Currency Deposit Act
b. Deposits Protection Act
c. Secrecy of Bank Deposits
d. Intellectual Property Law
10. What are the prohibited acts under Secrecy of Bank Deposits?
a. Bank Deposits may not be examined, inquired or looked into by any person,
governmental official, bureau or office.
b. Any official or employee of a banking institution may not disclose to any person
of any information concerning said deposits.
c. Disclosure to the Treasurer of the Philippines for dormant deposits for at least
ten (10) years under the Unclaimed Balances Act
d. A and B
True or False Questions

1. Trust funds are covered by the term “Deposit”.

2. The purpose of Secrecy of Bank Deposits is to encourage deposit in banking
institutions and to discourage private hoarding so that banks may lend such funds
and assist in the economic development of the country.
3. Foreign Currency Deposits are governed by the Secrecy of Bank Deposits.
4. Bank accounts may be garnished by the creditors of the depositor. There is no
violation of the Law on Secrecy of Bank Deposits if the accounts are garnished.
5. Any official or employee of a banking institution may not disclose to any person of
any information concerning said deposits.
6. Bank Deposits may not be examined, inquired or looked into by any person,
governmental official, bureau or office.
7. Deposits may be disclosed if a bank account is being investigated in court.
8. Foreign currency accounts may not be disclosed even there is a written permission
of the depositor.
9. Section 5 of the RA states that violators will be subject to “conviction, to an
imprisonment of not more than five years or a fine of not more than P20,000, or
both, in the discretion of the court.
10. The Bangko Sentral can examine bank accounts in the course of its periodic or
special examination regarding compliance with Anti-Money Laundering Law.

Key Answers

Multiple Choice Questions 5. A

6. C
1. A
7. D
2. C
8. A
3. B
9. C
4. D
10. D
True or False Questions

1. T 6. T
2. T 7. T
3. F 8. F
4. T 9. T
5. T 10. T
ANTI- MONEY LAUNDERING ACT
REPUBLIC ACT NO. 9160

Questionnaires
MAY 2021

Busto, Daniel
Baliza, Mariel
Galang, Shekinah
Fuentes, Jhumalin
Pigao, Reian Cate
Petilla, Mecy
Ramirez, Myron
Revilla, Rommel
Vicencio, Dale Lawrence

Submitted to:
Atty. John Paul Braga
 Questions: Chapter 8 Anti – Money Laundering Act
True or False:
1. Anti-Money Laundering Council is the authority created under the Anti-Money
Laundering Act to supervise the regulation and implementation of the law. TRUE
2. Unlawful activity under the AMLA covers only graft and corruption which directly
benefited the concerned government official. FALSE
3. All real estate transactions are covered under the Anti-Money Laundering Act.
FALSE
4. Anti-Money Laundering Council is composed of the BSP Governor,
Commissioner of Insurance Commission, and the Chairman of SEC. TRUE
5. Inquiry to the banks by AMLC will not possible unless the bank concerned is
informed. TRUE.
6. All deposits are protected by the Bank Secrecy Law. Hence, AMLC cannot
inquire about bank deposits. FALSE
7. One of the circumstances that can a transaction can be considered suspicious is
when the amount involved does not commensurate with the business of the
depositor. TRUE
8. A person who does not have a permanent job and deposited three hundred
thousand pesos is not covered by the AMLA and should not be reported to the
AMLC. FALSE
9. Shell companies are commonly used to serve as front facing companies in order
for the dirty money to be integrated in the mainstream economy. TRUE
10. All records of transactions shall be stored within 3 years of from date of
transactions. FALSE

Direction: Please choose the letter of the best answer

1. The anti-money laundering act as effected on 2001 aims to strengthen money

laundering regime in the country, increase investor confidence and ensure that the
Philippines is not used as a site to launder proceeds of unlawful activity. The
following institutions are covered by the law except
a. Bank and financial institutions
b. Securities Dealers
c. Pawnshop
d. Casino
e. All of the above
2. A transaction is considered as Suspicious Transaction within Covered institution
who shall be in violation of the anti-money laundering act regardless of the amount
in which of the following circumstances?
a. there is a deviation from the client’s profile/past transactions
 b. there is an underlying legal or trade obligation, purpose or economic
justification
c. the amount involved is not commensurate with the business or financial
capacity of
the client
d. all of them are considered suspicious transactions
3. Upon the effectivity of RA 9160 on October 17, 2001, the covered transaction are
those transactions having a total amount in excess of:
a. Php 1,000,000.00
b. Php 500,000.00
c. Php 3,000,000.00
d. Php 4,000,000.00
4. Unlawful activities as enumerated by the Anti-money laundering act are:
i. Distribution of prohibited drugs
ii. Robbery with violence or intimidation
iii. Qualified theft
iv. Fraudulent importation of any vehicle
v. Insider trading
vi. Kidnapping for ransom
a. I,II, III, IV, V and VI
b. I, III IV, VI only
c. I, III, IV, V, VI only
d. I, II, IV, V, VI only
e. None of them are enumerated in the act

5. Statement 1: All covered institution may report to AMLC all covered transaction for
up to 10 working days
Statement 2: All covered institution shall kept records of transactions, except from
those closed accounts, maintain and safely store for 5 years
a. Only statement 1 is true
b. Only statement 2 is true
c. Both of the statements are true
d. None of the statements are true
6. Upon the amendment under RA 9194, the covered transaction are those
transactions having a total amount in excess of:
a. Php 1,000,000.00
b. Php 500,000.00
c. Php 3,000,000.00
d. Php 4,000,000.00
7. When may the AMLC have the power to inquire and examine a deposit of a
person?
a. Whenever the AMLC intends to since they are granted power to inquire into
bank deposit as stated in section 11 of RA 9160 in order to carry its mandate
 b. Upon the reporting of the banking institution that a deposit may be of a
suspicious transaction
c. Upon the order of competent court due to the existence of probable cause
d. The AMLC has no right to inquire and examine the deposit of a person as it
is a direct violation of RA 1405 or the bank Secrecy law
8. Money laundering is an act or series or combination of acts whereby proceeds of
an unlawful activity, whether in cash, property or other assets, are converted,
concealed or disguised to make them appear to have originated from legitimate
sources. Such unlawful act happens in stages. It is the stage where series of
financial transactions during which the dirty money is passed through a series of
procedures, putting cover upon cover of persons and financial activities into the
laundering process
a. Layering
b. Integrating
c. Placement
d. Covering
9. In this money laundering stage the money is once again made available to the
criminal with the occupational and geographic origin obscured or concealed. The
laundered funds are now integrated back into the legitimate economy through the
purchase of properties, businesses and other investments.
a. Layering
b. Integrating
c. Placement
d. Covering
10. It involves initial placement or introduction of the illegal funds into the financial
system.
Financial institutions are usually used at this point. Layering
a. Layering
b. Integrating
c. Placement
d. Covering
11. Statement 1: Where the court has issued an order of forfeiture of the monetary
instrument the offender or any other person claiming an interest therein may apply,
by verified petition, which shall be filed within ten (10) days from the date of the
order of forfeiture, in default of which the said order shall become final and
executory.
Statement 2: When a forfeiture order has been issued but is imposable because
any particular monetary instrument or property cannot, with due diligence, be
located, or it has been substantially altered, destroyed, diminished in value or
otherwise rendered worthless, the court can order the convicted offender to pay
an amount twice to the value of said monetary instrument or property
a. Only statement 1 is true
b. Only Statement 2 is true
 c. Both Statements are true
d. None of the statements are true
12. Arya, the secretary and a close friend of Petyr Baelish, a councillor has been
charged with violation RA 9160 otherwise known as anti-money laundering act
after aiding Petyr to re-invest the proceeds of her underground gateway drug in a
legitimate mutual funds offered by a financial institution in their city. Who shall have
jurisdiction over the trial of Arya?
a. Regional Trial Court
b. Supreme Court
c. Sandiganbayan
d. Arya is not in violation of Anti-Money Laundering Act
13. Sansa, a director of Winterfell Co. has been threatened by the rising prominence
of their competitor, Kingslanding Co. The congested market would have an effect
of divided demand so she has to think of ways to tear down the competition. She
then reported false information regarding Kingslanding Co. stating that the
company has been laundering money through establishing a legit business as their
fron but has been selling illegal drugs underground. After examination and trials,
Kingslanding has been cleared of allegation and Sansa has been charged with:
a. Malicious Reporting – penalty of 6 months – 4 years imprisonment and a
fine of Php 100,000.00 to Php 500,000.00
b. Malicious Reporting – penalty of 6 months to 5 years imprisonment and a
fine of Php 500,000.00 to Php 1,000,000.00
c. Breach of Confidentiality - penalty of 6 months – 4 years imprisonment and
a fine of Php 100,000.00 to Php 500,000.00
d. Breach of Confidentiality - penalty of 3 months – 8 years imprisonment and
a fine of Php 500,000.00 to Php 1,000,000.00
14. During the course of his audit, Jon Snow, the internal auditor of Black Castle Co
has discovered money laundering activities perpetrated by the CEO, Jamie
Lannister. Jon Snow gathered all his evidence and reported the transaction to
AMLC. He then also sent the copy of the gathered evidence to Citadel News to
publish the information and let everyone know of the unlawful activity. He then get
on and claimed that he shall not be punished by any law as he is a whistleblower.
Jon snow should be charged with respect to AMLA’s provision with:
a. Malicious Reporting – penalty of 6 months – 4 years imprisonment and a
fine of Php 100,000.00 to Php 500,000.00
b. Malicious Reporting – penalty of 6 months to 5 years imprisonment and a
fine of Php 500,000.00 to Php 1,000,000.00
c. Breach of Confidentiality - penalty of 6 months – 4 years imprisonment and
a fine of Php 100,000.00 to Php 500,000.00
d. Breach of Confidentiality - penalty of 3 months – 8 years imprisonment and
a fine of Php 500,000.00 to Php 1,000,000.00
e. He should not be charged with any violation.
15. Which of the following is/are the salient features of the anti-money laundering act?
 i. It criminalizes money laundering
ii. Creates anti-money laundering council
iii. Relaxes the bank deposit secrecy laws authorizing the AMLC and
the Securities and Exchange Commission access to deposit and
investment accounts in specific circumstances.
iv. It establishes the rules and the administration process for the
prevention, detection, and prosecution of money laundering
activities.
a. I,II, and III only
b. I, II, and IV only
c. I, III and IV only
d. All of them are salient features
e. None of them are salient features
16. Which of the following are the action that the court may take if probable cause exist
that a monetary instrument are of proceeds of unlawful activities
a. Inquire into bank deposits
b. Issue a freeze order against the monetary instrument
c. Issue an order of forfeiture against the depositor
d. None of the choices
e. All of the Choices
17. Statement 1: No court shall issue a temporary restraining order or writ of injunction
against any freeze order issued by the AMLC except the Court of Appeals or the
Supreme Court
Statement 2: The regional trial courts shall have jurisdiction to try all cases on
money laundering.
a. Only statement 1 is true
b. Only Statement 2 is true
c. Both statements are true
d. None of the statements are true
18. Under the Anti-Money Laundering Law, a covered institution is required to maintain
a system of verifying the true identity of their clients as well as persons purporting
to act on behalf of
a. Those doing business with such clients
b. Unknown principals
c. The covered institution
d. Such clients.
19. “Monetary Instrument” in Anti-Money Laundering Act or Republic Act no. 9160
include contracts or policies of insurance, life or non-life, contracts of surety ship,
pre-need plans, and member certificates issued by mutual benefit association.
True/False.
a. True, it is expressly provided in the law.
b. True, monetary instrument includes instruments where title thereto passes
to another by endorsement, assignment, or delivery.
 c. False, monetary instrument only incudes coins or currency of legal tender
of the Philippines, or of any other country.
d. False, contracts or policies of insurance, life or non-life, contracts of surety
ship, pre-need plans, and member certificates issued by mutual benefit
association are not considered as monetary instrument.
20. During the Election period for the 2021 Presidential election, Danaerys Targaryen
and Cersei Lannister are vying for the position, with Cersei leading national
surveys. Danaerys as a part owner of Iron bank, looked into a transaction of Cersei
from the year 2019 and discovered suspicious transaction leading to a possible
anti-money laundering act violation. As her duty, Denaerys reported the
transaction to AMLC and expected that a case may be filed against Cersei and will
lead to possible forfeiture of her assets and such trial will penalize Cersei for her
crime. To her surprise, even there is already a probable existence of violation, no
case has been filed by the AMLC against Cersei and, Danaerys claimed that the
AMLC is protecting Cersei and is not being FAIR. Is Denaerys right? Decide.
a. Yes, Cersei should be prosecuted as there is already a probable cause for
violation as stated in the problem.
b. Yes, Cersei should be prosecuted. It does not matter if she is a strong
presidential candidate. A violation is a violation. Her assets should be
forfeited
c. No, Cersei shall not be prosecuted since the filing is done during election
period
d. No, Cersei shall not be prosecuted as Denaerys acted in violation of Bank
Secrecy Law

Answers:
1. D 11. D
2. B 12. C
3. D 13. A
4. A 14. D
5. B 15. C
6. B 16. E
7. C 17. C
8. A 18. D
9. B 19. A
10. C 20. C
INTELLECTUAL PROPERTY CODE
TRUE or FALSE
1. The Government is not precluded from receiving and holding copyrights
transferred to it by assignment, bequest or otherwise. TRUE
2. The reproduction or communication to the public by mass media of articles on
current political, social, economic, scientific or religious topic, lectures, addresses
and other works of the same nature, which are delivered in public if such use is for
information purposes and has not been expressly reserved, indicating the source
constitutes infringement. FALSE
3. In all circumstances, Copyright in work of architecture shall include the right to
control the erection of any building which reproduces the whole or a substantial
part of the work either in its original form or in any form recognizably derived from
the original. FALSE
4. The copyright shall be protected for fift y (50) years from the date on which the
work was first lawfully published. TRUE
5. In anonymous or Pseudonymous works, the copyright shall be protected for fifty
(50) years from the date on which the work was first lawfully published. TRUE
6. A mark can still be registered even if it is identical with a registered mark belonging
to a different proprietor. FALSE
7. The rights in a mark shall be acquired through registration made validly in
accordance with the provisions of the IPC. TRUE
8. The rights to a trademark shall be 10 years from registration. TRUE
9. Industrial Design is a protection option designed to protect innovations that are not
sufficiently inventive to meet the inventive threshold. FALSE
10. if two or more persons separately made the same invention, priority is given to one
who filed second. FALSE
11. The making, using, offering for sale, selling, or importing a patented product, or a
product directly or indirectly from a patented process, without authorization of the
patentee constitutes a patent infringement. TRUE
12. A patent cannot be cancelled even if it is contrary to public order. FALSE
13. A patent is a grant issued by the government to an inventor, designer, or maker,
the right to include others from making, using or selling his invention, design or
utility model within the country for a specific term, in exchange of his patentable
disclosure. FALSE
14. Intellectual property is legal concept that provides legal protection to infringement
of the knowledge assets of an owner. TRUE
15. Trade secret protection and trademark protection are interchangeable terms with
regard to the intellectual property system. FALSE
MC Questions
1. Which of the following is true?
a. Imprisonment of five (5) years and one (1) day to nine (9) years plus a fine
ranging from Five hundred thousand pesos (P500,000) to One million five
hundred thousand pesos (P1,500,000) for the third and subsequent offenses.
b. Imprisonment of six (6) years and one (30) day to nine (9) years plus a fine
ranging from Five hundred thousand pesos (P500,000) to One million five
hundred thousand pesos (P1,500,000) for the third and subsequent offenses.
c. Imprisonment of six (6) years and one (1) day to nine (9) years plus a fine
ranging from Five hundred thousand pesos (P500,000) to Three million five
hundred thousand pesos (P3,500,000) for the third and subsequent offenses.
d. None of the above.

2. Which of the following is classified as works unprotected?

a. Works of the government
b. Works of an artist for public purposes.
c. Works of a public teacher pertaining to social issues.
d. All are classified as works unprotected.

3. Protection commences from the moment of

a. Registration
b. Publication
c. Creation
d. Circulation

4. Derivative works includes:

a. Musical compositions
b. Computer programs
c. Photographic works
d. Dramatizations

5. It is the right of literary property as recognized and sanctioned by positive law.

a. Trademark
b. Copyrights
c. Reproduction
d. Patents

6. A certificate of registration of a mark shall be prima facie evidence of:

a. The validity of registration
 b. The registrant’s ownership of the marks
c. The registrant’s exclusive right to use the same in connection with the goods
or services and those that are related thereto specified in the certificate
d. All of the above

7. Which of the following are the criminal penalties for the people found guilty of
committing any of the acts mentioned in Section 155, 168, and 169.1 of IPC, except
a. Imprisonment from two (2) years to five (5) years
b. Fine ranging from fifty thousand pesos (P50,000) to two hundred thousand
pesos (P200,000)
c. Both a and b
d. Neither a nor b
8. The name or designation identifying or distinguishing an enterprise.
a. Patent
b. Trademark
c. Copyright
d. None of the above

9. The following are contents of the application for patents, except:

a. Abstract
b. Request for the grant
c. Inventive Step
d. Description of Invention

10. Statement I: Divisional Application may be allowed if there is more than one
invention, either voluntarily or within 4 months from recommendation of the
Director.
Statement II: Industrial Design is any composition of lines or colors or any three-
dimensional form, whether or not associated to lines or colors.
a. Only Statement I is correct
b. Only Statement II is correct
c. Both statements are correct
d. Both statements are incorrect

11. The following are the bureaus of the Intellectual Property Office, except:
a. Bureau of Patents
b. Bureau of Trademarks
c. Bureau of Public Affairs
d. Documentation, Information and Technology Transfer Bureau

12. Which statement is incorrect?

a. Invention - Patent Novelty, Inventive Step, Industrial Applicability
b. Design - Patent Novelty, and ornamentality
 c. Utility - Model Novelty and Industrial Applicability
d. None of the above

13. Which is not a limitation of patent rights?

a. Patented product has been put in the market
b. Act is done publicly, on a non-commercial scale, which significantly prejudice
the economic interest of the owner
c. Act consist of making or using exclusively for the purpose of experiments
relating to the patented invention.
d. Act consist of the preparation for individual cases

14. A symbol, word/s, legally registered or established by use as representing a

company or product.
a. Patent
b. Copyright
c. Trade Secrets
d. Trademarks

15. What does a trademark protect?

a. An invention
b. A work of art
c. Logos, names, and brands
d. A secret formula
 ANTI-MONEY
LAUNDERING ACT
(R.A. 9160)
Questionnaire
BSA 3 - 9

Altatis, Kirsten Kai P.

Catalasan, Charrize Mae O.
De Guzman, Sajid Carlo M.
Famadico, Allysa Fae F.
Overio, Cherilyn S.
Plata, Gemillen V.
Rambuyong, Mary Ann S.
Villanueva, Limuel G.
Zubiri, Norvic Angelo C.
 QUESTIONNAIRE

I. True or False

True 1. One of the definitions of Monetary instrument is that it refers to coins or

currency of legal tender of the Philippines, or of any other country.

True 2. The Anti-Money Laundering Council is hereby created and shall be composed
of the Governor of the Bangko Sentral ng Pilipinas as chairman, the
Commissioner of the Insurance Commission and the Chairman of the Securities
and Exchange Commission as members.

False - 3. Republic Act 9061 is an act defining the crime of money laundering, providing
penalties therefore and for other purposes.
9160

False - Five 4. In record keeping under RA 9160, all records of all transactions of covered
institutions shall be maintained and safely stored for three (3) years from the
(5)
dates of transactions.

True 5. The AMLC may inquire into or examine any particular deposit or investment
with any banking institution or non-bank financial institution upon order of any
competent court in cases of violation of this Act when it has been established
that there is probable cause that the deposits or investments involved are in
any way related to a money laundering offense.

False - may 6. Under Limitations on Request for Mutual Assistance under RA 9160, The AMLC
must not refuse to comply with any request for assistance where the action
sought by the request contravenes any provision of the Constitution or the
execution of a request is likely to prejudice the national interest of the
Philippines unless there is a treaty between the Philippines and the requesting
State relating to the provision of assistance in relation to money laundering
offenses.

False – 7. “Cover Transaction” refers to a wire transfer that combines a payment

message sent directly by the originating/ordering financial institution to the
Cover
beneficiary financial institution with the routing of the funding instruction,
Payment called the cover, from the originating/ordering financial institution to the

AMLA
 beneficiary financial institution through one or more intermediary financial
institutions.

True 8. If the offender is a corporation, association, partnership or any juridical person,

the penalty shall be imposed upon the responsible officers, as the case may
be, who participated in the commission of the crime or who shall have
knowingly permitted or failed to prevent its commission.

False – 9. One definition of “Covered Payment” refers to a transaction in cash or other

equivalent monetary instrument exceeding Five Hundred Thousand pesos
Covered
(PHP500,000.00).
Transaction

True 10. Money laundering is a crime whereby the proceeds of an unlawful activity
are transacted, thereby making them appear to have originated from
legitimate sources.

II. Multiple Choices

1. I. To protect and preserve the integrity and confidentiality of bank accounts and to ensure
that the Philippines shall not be used as a money laundering site for the proceeds of any
unlawful activity.
II. The State shall extend cooperation in transnational investigations and prosecutions of
persons involved in money laundering activities wherever committed.
A. Both statements are true
B. Both statement are false
C. Only statement 1 is true
D. Only statement 2 is false

2. Refers to a bank account, electronic money account, investment account, insurance policy,
membership account, and other similar contract or service agreement, business or
professional relationships between a covered person and its customers where funds or any
monetary instrument of the latter are held by the former.
A. Account
B. Asset
C. Bearer Shares
D. Bank Inquiry

AMLA
3. Refers to a provisional remedy aimed at preserving monetary instruments or properties in
any way related to an unlawful activity or money laundering offense defined herein, during
the pendency of civil forfeiture proceedings.
A. Bank Inquiry
B. Asset Preservation Order
C. Appropriate Government Agency
D. Average Due Diligence

4. Refers to a provisional remedy that allows the AMLC to examine or inquire into particular
bank accounts or investment with a bank or non-bank financial institution, notwithstanding
the provisions of Republic Act No. 1405, as amended; Republic Act No. 6426, as amended;
Republic Act No. 8791; and other bank secrecy laws.
A. Bank Inquiry
B. Asset Preservation Order
C. Appropriate Government Agency
D. Average Due Diligence

5. “Beneficial Owner” refers to any natural person who:

A. Has no effective control over a juridical person or legal arrangement.
B. Owns, at least, twenty-five percent shares, contributions or equity interest in a juridical
person or legal arrangement.
C. Ultimately owns or controls the customer and/or on whose behalf a transaction or
activity is being conducted.
D. Owns, at least, thirty percent shares, contributions or equity interest in a juridical
person or legal arrangement.

6. Covered Institutions (Persons) natural or juridical, refer to:

A. Banks, non-banks, quasi-banks, trust entities, foreign exchange dealers, pawnshops,
money changers, remittance and transfer companies
B. Insurance companies, pre-need companies and all other persons supervised or
regulated by the Insurance Commission
C. Jewelry dealers in precious metals
D. All of the above

7. All records of all transactions of covered institutions shall be maintained and safely stored
for
A. Five years
B. Six years

AMLA
 C. Ten years
D. None of the above

8. Covered Transaction refers to:

A. A transaction in cash or other equivalent monetary instrument not exceeding Five
Hundred Thousand pesos
B. A transaction with or involving jewelry dealers, dealers in precious metals and dealers
in precious stones in cash or other equivalent monetary instrument exceeding One
Million yen
C. A casino cash transaction exceeding Five Hundred Thousand Pesos or its equivalent in
other currency.
D. None of the above

9. I. Suspicious Transaction refers to a transaction, regardless of amount, where any of the

suspicious circumstances, as herein defined, is determined, based on suspicion or, if
available, reasonable grounds, to be existing.
II. Suspicious Transaction Report refers to a report on a suspicious transaction, as herein
defined, filed by a covered person before the AMLC.
A. Both statements are true
B. Both statement are false
C. Only statement 1 is true
D. Only statement 2 is false

10. Covered persons shall report to the AMLC all covered transactions and suspicious
transactions within ___ working days from occurrence thereof, unless the AMLC prescribes
a different period not exceeding ___ working days.
A. Ten; Fifteen
B. Five; Fifteen
C. Five; Ten
D. Ten; Ten

AMLA
Anti-Money Laundering Act
Link: AMLA Quizlet

1. i. AMLC shall file with the Court of Appeals, ex parte, through the Office of the Solicitor
General, a petition for the freezing of any monetary instrument or property that is in any way
related to a lawful activity.
ii. The AMLC shall institute civil forfeiture proceedings abd all other remedial proceedings,
through the Office of the Solicitor General, to confiscate all monetary instruments or properties
related to Money Laundering (ML)/ Terrorism Financing (TF) or associated lawful activity.
a. True; True
b. True; False
c. False; True
d. False; False

2. Duty of Covered Persons to Cooperate in AMLC Investigations

a. Give the authorized personnel of the AMLC, full access to all information, documents or
objects pertaining to the account, transaction and/or person subject of the investigation
immediately upon receipt of the request or order
b. Submit within 5 working days from receipt of the request or order from the AMLC,
certified true copies of the documents pertaining to account, transaction and/or person
subject of the investigation
c. the confidentiality of the investigation and ensure that the owner of any monetary
instrument or property, or other unauthorized personnel, shall not be informed about the
investigation, to prevent tipping off
d. All of the above

3. It refers to a report on a covered transaction filed by a covered person before the AMLC.
a. Transaction report
b. Suspicious transaction report
c. Covered transaction report
d. None of the above

4. It refers to a report on a suspicious transaction filed by a covered person before the AMLC.
a. Transaction report
b. Suspicious transaction report
c. Covered transaction report
d. None of the above
5. A ___________ is an extraordinary and interim relief issued by the CA to prevent the
dissipation, removal, or disposal of properties that are suspected to be the proceeds of, or related
to, unlawful activities as defined in Section 3(i) of RA No. 9160, as amended.
a. Restraint order
b. Temporary order
c. Freeze order
d. Memorandum order

6. It refers to the non-conviction-based proceedings aimed at forfeiting, in favour of the

government, monetary instruments or properties related to an unlawful activity or money
laundering offense defined herein.
a. Civil law
b. Civil offense
c. Civil proceedings
d. Civil forfeiture

7. The ___________ and the government agency concerned shall, likewise, immediately notify
the owner or holder of a frozen related account on why the monetary instrument or property was
considered as such, and furnish a copy of the freeze order, which was used as the basis for the
freeze.
a. Covered policemen
b. Covered person
c. Covered notifier
d. Covered NBI

8. What refers to games of chance and variations thereof offered by casinos, and approved by the
Appropriate Government Agency (AGA)?
a. Mobile legends
b. Gaming operations
c. Gaming arcade
d. Gaming console

9. What type of casino operates on a vessel, ship, boat, or any other water-based craft wholly or
partly intended for gambling?
a. Internet-based casino
b. Ship-based casino
c. House-based casino
d. Comedy bar
10. What is an independent government agency in the Philippines that is tasked to implement
AMLA?
a. Anti-Money Laundering Council
b. Bureau of Corrections
c. Land Transportation Office
d. Department of Trade and Industry

11. What type of casinos in which persons participate by remote communication facilities such as
but not limited to, internet, telephone, television, radio or any other kind of electronic or other
technology for facilitating communication?
a. House-based casino
b. Ship-based casino
c. Internet-based casino
d. Comedy Bar

12. The following are acts of Unlawful Activities, except?

a. Plunder
b. Robbery and extortion
c. Qualified theft
d. Shifting course

13. i. Criminal Conviction for an unlawful activity is not a prerequisite for the institution of a
civil forfeiture proceeding. Stated otherwise, a finding of guilt for an unlawful activity is not an
essential element of civil forfeiture.
ii. A forfeiture shall include those other monetary instruments or property having equivalent
value to that of the monetary instrument of property found to be related in any way to an
unlawful activity or a money laundering offense.
a. True; True
b. True; False
c. False; True
d. False; False

14. All are Requirements for Mutual Legal Assistance Requests from Foreign States except:
a. Confirm that an investigation or prosecution is being conducted in respect of a money
launderer named therein or that he has been convicted of any money laundering offense
b. State the grounds on which any person is being investigated or prosecuted for money
laundering/ terrorism financing or associated unlawful activity or the details of his
conviction
c. Give sufficient particulars as to the identity of said person, including specific monetary
instrument or property;
 d. Coordinate with other states regarding requests of freezing and forfeiture of assets

15. Mutual Legal Assistance refers to the formal method of cooperation between
jurisdictions for the purposes of seeking assistance in the production of documents, asset freezing
and forfeiture, extradition, enforcement of foreign judgement, and other kinds of
assistance in criminal matters.
a. two; financial
b. two; legal
c. three; financial
d. three; legal

16. When does Claimed on Forfeited Assets take place?

a. The court has issued an order of forfeiture of the monetary instrument or property
in a criminal prosecution for any money laundering offense defined under Section 4
of this Act, the offender or any other person claiming an interest therein may apply,
by verified petition, for a declaration that the same legitimately belongs to him and
for segregation or exclusion of the monetary instrument or property corresponding
thereto
b. The court has issued an order of forfeiture of the monetary instrument or property subject
of a money laundering offense defined under Section 4, and said order cannot be enforced
because any particular monetary instrument or property cannot, with due diligence, be
located, or it has been substantially altered, destroyed, diminished in value.
c. The court has issued no prior criminal charge, pendency of or conviction for an unlawful
activity or money laundering offense is necessary for the commencement or the
resolution of a petition for freeze order.
d. The court has issued no assets shall be frozen, attached or forfeited to the prejudice of a
candidate for an electoral office during an election period.

17. When does Payment in Lieu of Forfeiture take place?

a. The court has issued an order of forfeiture of the monetary instrument or property in a
criminal prosecution for any money laundering offense defined under Section 4 of this
Act, the offender or any other person claiming an interest therein may apply, by verified
petition, for a declaration that the same legitimately belongs to him and for segregation or
exclusion of the monetary instrument or property corresponding thereto
b. The court has issued an order of forfeiture of the monetary instrument or property
subject of a money laundering offense defined under Section 4, and said order
cannot be enforced because any particular monetary instrument or property cannot,
with due diligence, be located, or it has been substantially altered, destroyed,
diminished in value
 c. The court has issued no prior criminal charge, pendency of or conviction for an unlawful
activity or money laundering offense is necessary for the commencement or the
resolution of a petition for freeze order
d. The court has issued no assets shall be frozen, attached or forfeited to the prejudice of a
candidate for an electoral office during an election period

18. As for the MLA Request from a Foreign State, AMLC should comply with the MLA requests
where the action in the request contravenes any provision of the Constitution or the execution of
the request is likely to prejudice the national interest of the Philippines, unless there is a treaty
between the Philippines and the requesting state.
a. True
b. False

19. How many members are there in the Congressional Oversight Committee?
a. 10 members of the Senate
b. 8 members of the Senate & 7 members of the House of Representatives
c. 10 members of the Senate & 10 members of the House of Representatives
d. 7 members of the Senate & & members of the House of Representatives

20. i. The AMLC can intervene or participate in the operations of the Bureau of Internal
Revenue.
ii. The AMLC shall be provided with an initial appropriation of P25,000,000.00 to be drawn
from the national government.
a. True; True
b. True; False
c. False; True
d. False; False

21. It is an act of any person who, with malice or in bad faith, reports or files a completely
unwarranted or false information relative to a money laundering transaction against any person.
a. Malicious laundering
b. Fraud
c. Malicious reporting
d. Libel

22. What is the penalty for failure to keep records?

a. Imprisonment of 7 to 14 years and a fine of not less than 3 million pesos but not more
than twice the value of the monetary instrument or property involved in the offense
b. Imprisonment of 6 months to 1 year or a fine of not less than P100,000 but not more
than P500,000, or both
 c. Imprisonment of 6 months to 4 years or a fine of not less than P100,000 but not more
than P500,000, or both
d. Imprisonment of 4 to 7 years and a fine of not less than 1.5 million pesos but not more
than 3 million pesos.

23. Nilo, a banker, failed to disclose a crucial monetary instrument and property related to the
money laundering of his boss to the Anti-Money Laundering Council. What is the possible
penalty for Nilo?
a. Imprisonment of 7 to 14 years and a fine of not less than 3 million pesos but not more
than twice the value of the monetary instrument or property involved in the offense
b. Imprisonment of 6 months to 1 year or a fine of not less than P100,000 but not more than
P500,000, or both
c. Imprisonment of 6 months to 4 years or a fine of not less than P100,000 but not
more than P500,000, or both
d. Imprisonment of 4 to 7 years and a fine of not less than 1.5 million pesos but not more
than 3 million pesos

24. i. The AMLC may execute the MLA request or refuse to execute the same and inform the
foreign State of any valid reason for not executing the request or for delaying the execution
thereof.
ii. All Mutual Legal Assistance requests to a foreign State shall be coursed to the Department of
Justice.
a. True; True
b. True; False
c. False; True
d. False; False

25. The punishment of imprisonment ranging from 3 to 8 years and a fine of not less P500,000
but not more than P1,000,000 shall be imposed on person who:
a. To those who fail to keep records
b. To those who did malicious reporting
c. To any person knowing that any monetary instrument or property involves, or relates to,
the proceeds of any unlawful activity, transacts or attempts to transact said monetary
instrument or property
d. To those who breach confidentiality

26. What are the additional penalties if the offender is a public official or employee?
a. He/she will suffer perpetual or temporary absolute disqualification from office
b. He/she will be deported
c. His/her license might be suspended or revoked
 d. None of the above

27. i. No case for money laundering may be filed against and no assets shall be frozen, attached,
or forfeited to the prejudice of a candidate for an electoral office during an election period.
ii. The Oversight Committee shall have the power to promulgate its own rules, to oversee the
implementation of AMLA, and to review or revise the implementing rules issued by the AMLC
within 60 days from the promulgation of the said rules.
a. True; True
b. True; False
c. False; True
d. False; False

28. In cases of breach of confidentiality published or reported by the media, the responsible
reporter, writer, president, publisher, manager, and editor-in-chief will not be held criminally
liable.
a. True
b. False

29. Which of the following is a person supervised/regulated by IC?

a. Banks
b. Securities dealer
c. Holding companies
d. Pawnshops

30. Jewelry dealers in precious metals, who, as a business, trade in precious metals, for
transactions in excess of:
a. P10,000,000
b. P5,000,000
c. P2,000,000
d. P1,000,000

31. i. Money Laundering is a crime whereby the proceeds of an unlawful activity as defined by
the law are transacted, thereby making them appear to have originated from legitimate sources
ii. Covered persons includes Insurance Companies, Pre-need Companies, and all other persons
supervised or regulated by the Banko Sentral ng Pilipinas
a. True; True
b. True; False
c. False; True
d. False; False
32. The Original Anti-Money Laundering Act, Republic Act No. 9160 was passed in:
a. 2001
b. 1991
c. 2011
d. 2003

33. Securities dealer, broker, salesmen, investment houses are example of covered persons
regulated by:
a. BSP
b. IC
c. AMLC
d. SEC

34. The Court of Appeals shall act on the application to inquire into or examine any deposit or
investment with any banking institution or non-bank financial institution within ________ from
filing the application.
a. Twenty-four (24) hours
b. Forty-eight (48) hours
c. Three (3) Days
d. Five (5) Days

35. A bank inquiry can commence without a court order.

a. True
b. False

36. What is needed to be submitted when a person receives a bank inquiry order?
a. Certified true copies of the documents pertaining to deposit, investment, account
and/or transaction subject of the bank inquiry
b. Certified true copies of the documents pertaining to deposit, checking, account and/or
transaction subject of the bank inquiry
c. Certified true copies of the personal documents of the bank inquiry order recipient
d. Certified true copies of the documents of assets and properties of the bank inquiry order
recipient

37. Within how many days should the bank inquiry order recipient submit the needed
documents?
a. Within five (5) working days from receipt of the court order or AMLC Resolution
b. Within five (5) working days before the receipt of the court order or AMLC Resolution
c. Within seven (7) working days from receipt of the court order or AMLC Resolution
d. Within seven (7) working days before receipt of the court order or AMLC Resolution
38. A bank inquiry order necessitates any form of physical seizure of property of the account
holder or recipient of the bank inquiry.
a. True
b. False
ANTI-MONEY LAUNDERING ACT (R.A. 9160, AS AMENDED)

QUESTIONNAIRE

Atizado, Pouline Kate B.

Conde, Marynhel S.

Lalim, Arvin Stephen S.

Mora, Frances Joyce M.

Ogerio, Jude Davidson R.

Priolo, Kyle Ivy A.

Sajonia, Mei – Jie Pearl V.

Sese, Steffanie Rhysse D.

Tatel, Yvette C.
T/F

1. The AMLC can freeze any monetary instrument or property alleged to be

proceeds of any unlawful activity. T
2. Inquiry into deposits may be availed of even in the absence of pre-existing criminal
case under the same law. T
3. When there is conviction for money laundering, the court shall issue a judgement
of forfeiture in favor of the Treasurer of the Philippines. F
4. When a transaction is both covered and suspicious, it shall be reported still as both.
F
5. The penalty of imprisonment from six (6) months to one (1) year or a fine of not less
than one hundred thousand pesos (Php100,000.00) but not more than five
hundred thousand pesos (Php500,000.00), or both, shall be imposed on a person
convicted by violation of malicious reporting. F
6. No case for money laundering may be filed against, and no assets shall be frozen,
attached or forfeited to the prejudice of a candidate for an electoral office during
an election period. T
7. The AMLC may intervene and participate in the operations of the Bureau of
Internal Revenue related to money laundering. F
8. The following are the Covered Persons Supervised or Regulated by the Securities
and Exchange Commission (SEC)
I. Securities dealers, brokers, salesmen, investment houses and other similar
persons managing securities or rendering services as investment agent,
advisor, or consultant.
II. Mutual funds, close-end investment companies, common trust funds, and
other similar persons; and
III. Other entities administering or otherwise dealing in currency, commodities
or financial derivatives based thereon, valuable objects, cash substitutes
and other similar monetary instruments or property supervised or regulated
by the SEC. T
9. Anti-Money Laundering Council (AMLC) is composed of Governor of the BSP, the
Insurance Commissioner and the Chairman of the SEC. The Insurance
Commissioner shall be the Chairman. F
10. No court shall issue a temporary restraining order or writ of injunction against any
freeze order issued by the AMLC or any court order extending period of effectivity
of the freeze order except the Court of Appeals or the Supreme Court. T

Multiple Choice Questions

1. This pertains to an Incorporated company that possesses no significant assets and

does not perform any significant operations
A. Petron Company
B. Shell Company
C. AMLA-covered Company
D. Government Agency

2. Mr. Castell deposited P1,000,000 to Banco De Oro (BDO). The sum of money
resulted from Mr. Castell's sale of prohibited drugs. Does this constitute an act of
money laundering? If yes, what stage?
A. No.
B. Yes. Stage 1 - Placement
C. Yes. Stage 2 - Layering
D. Yes. Stage 3 - Integration

3. The Anti-Money Laundering Council is composed of:

I. Chairman: BSP Governor
II. Commissioner of Insurance Commission
III. Chairman of SEC
IV. Treasurer of the Philippines
V. Senior Managers of covered entities

A. I, II, III
B. III, IV, V
 C. I, III, V
D III, IV, V

4. Mr. Oli Walsh is a barber in a small town that only does house-to-house service. His
rate ranges from P70 to P80. On a single banking day, Sunshine Bank received a
deposit from Mr. Walsh amounting to P700,000. What will the bank's classification
be of this deposit?
A. Covered transaction only
B. Suspicious transaction only
C. Both covered and suspicious transaction
D. Not covered nor suspicious

5. Which of the following statements is/are incorrect?

I. A person whose monetary instrument or property has been frozen cannot
file a motion to lift the freeze order. The court must resolve the motion
before the expiration of the freeze order.
II. No court shall issue a temporary restraining order or a writ of injunction
against any freeze order, except the Supreme Court.

A. I only
B. II only
C. I and II
D. Neither I nor II

6. Under penalties for malicious reporting, if the offender is a corporation,

association, partnership or any other juridical person, the penalty of imprisonment
and/or fine shall be imposed upon the
A. Juridical entity
B. Board of directors
C. Responsible officers
D. Executives
7. Mr. Magna deposited 2.5 million pesos in Tiwala Co., a trust entity and considered
as a "covered person" under R.A. 9160. Is the deposit of Mr. Magna a "covered
transaction"?
A. Yes. A transaction in cash or other equivalent monetary instrument exceeding
P500,000 is a covered transaction.
B. No. There is no evidence that the money is derived from unlawful activities.
C. Yes. A transaction in cash or other equivalent monetary instrument equal or
exceeding 2.5 million pesos is a covered transaction.
D. No. The deposit should be considered as a suspicious transaction first before
being a covered transaction.

8. After 3 years, all reports related to Mr. Magna are disposed because of the
company's policy. Is Tiwala Co. in violation of R.A. 9160?
A. Yes. Tiwala Co. shall keep the reports for, at least, five (5) years from the dates
of submission to the AMLC.
B. Yes. Tiwala Co. shall keep the reports for, at least, four (4) years from the dates
of submission to the AMLC.
C. No. Tiwala Co. shall keep the reports for only 1 year.
D. No. Tiwala Co. shall keep the reports for only 2 years.

9. Coins or currency of legal tender of the Philippines, or of any other country and
drafts, checks and notes are form of
A. Monetary Instrument
B. Proceeds
C. Cash and Cash Equivalents
D. None of the above

10. Malicious Reporting. Any person who, with malice, or in bad faith, reports or files a
completely unwarranted or false information relative to any money laundering
transaction against any person, shall be subject to a penalty of imprisonment from
A. six (6) months to two (2) years and a fine of not less than P100,000 not more
than 500,000
 B. six (6) months to four (4) years and a fine of not less than P100,000 not more
than 500,000
C. six (6) months to two (2) years and a fine of not less than P20,000 not more than
100,000
D. six (6) months to four (4) years and a fine of not less than P20,000 not more than
100,000

11. Malicious Reporting. If the offender is a juridical person, the court decision would
be?
A. the penalty shall be imposed upon the responsible officers
B. may suspend or revoke its license
C. temporary suspension
D. the judicial person is liable for the penalty only

12. The freeze order on such account shall be effective immediately for a period
A. not exceeding fifteen (15) days.
B. not exceeding twenty (20) days.
C. not exceeding thirty (30) days.
D. not exceeding fourteen (14) days.
TRUE OR FALSE

1. Republic Act No. 9160 otherwise known as The Anti-Money Laundering Act of 2001 took effect on
September 29, 2001.
2. Covered transactions are multiple transactions in cash or other equivalent monetary instrument
involving a total amount in excess of Five Hundred Thousand (P500,000) Pesos within one (1)
banking day.
3. Anonymous accounts and those accounts that are under fictitious names and similar accounts are
allowed.
4. All records of all transactions of covered institutions shall be maintained and safely stored for
three (3) years from the dates of transactions.
5. The definition of covered persons excludes lawyers and accountants acting as independent legal
professionals in relation to information concerning their clients or where disclosure of
information would compromise client confidence or the attorney-client relationship.
6. Money Laundering offense is a crime whereby the proceeds of an unlawful activity are transacted,
thereby making them appear to have originated from illegitimate sources.
7. Only the Regional Trial Courts has the jurisdiction on money laundering cases.
8. Any proceeding relating to the unlawful activity shall be given precedence over the prosecution
of any offense or violation under this Act without prejudice to the freezing and other remedies
provided.
9. The primary objective of a freeze order is to temporarily preserve monetary instruments or
property that are in any way related to an unlawful activity or money laundering, by preventing
the owner from utilizing them after the duration of the freeze order.
10. When reporting covered transactions to the AMLC, covered institutions and their officers,
employees, representatives, agents, advisors, consultants or associates shall not be deemed to
have violated RA. 1405, RA. 6426, RA 8791 and other similar laws.
11. A person whose account has been frozen may file a motion to lift the freeze order and the court
must resolve the motion before or after the expiration of the 20-day original freeze order.
12. The freeze order or asset preservation order shall apply to amounts in the same account in excess
of the amount or value of the proceeds of the predicate offense.
13. A system of incentives and rewards cannot be established to the appropriate government agency
and its personnel that led and initiated an investigation, prosecution and conviction of persons.
14. Penalties for failure to keeping records are imprisonment of 6 mos. to 5 years and/or a fine pf
100,000 to 500,000.
15. The AMLC may execute the request or refuse to execute assistance from a foreign state.

MULTIPLE CHOICE QUESTIONS:

1. The following are the members of the Anti-Money laundering Council (AMLC) except:
a. Governor of BSP
b. Commissioner of Insurance Commission
c. Chairman of Securities and Exchange Commission
d. BIR Commissioner
2. No court shall be required in unlawful activities of the following, except:
a. Kidnapping for ransom
b. Drug offenses
c. Hijacking, destructive arson and murder; including those perpetrated by terrorists against
non-combatants and similar (civilian) targets.
d. Qualified Theft
3. The purpose of the Anti-Money Laundering Act is to:
a. To protect and preserve the integrity and confidentiality of bank accounts
b. Consistent with its foreign policy, extend cooperation in transnational investigations and
prosecutions of persons involved in money laundering activities wherever committed
c. To ensure that the Philippines shall not be used as a money laundering site for the
proceeds of any unlawful activity
d. All of the above
4. A transaction in cash or other equivalent monetary instrument involving a total amount in excess
of Php 500,000 within 1 banking day is known as?
a. Suspicious transaction
b. Covered Transaction
c. Unlawful activity
d. All of the above
5. Which of the following is not a predicate crime of Money-Laundering Offense?
a. Adultery
b. Fencing
c. Firearms violations
d. Caves protection law
6. The following are examples of unlawful activities, except:
a. Kidnapping for ransom
b. Plunder
c. Homicide
d. Swindling
7. Money laundering offense is committed by the following, except:
a. Any person knowing that any monetary instrument or property represents, involves, or
relates to, the proceeds of any unlawful activity, transacts or attempts to transact said
monetary instrument or property.
b. Any person knowing that any monetary instrument or property involves the proceeds of
any unlawful activity, performs or fails to perform any act as a result of which he facilitates
the offense of money laundering referred to in paragraph (a) above.
c. Any person knowing that any monetary instrument or property is required under this Act
to be disclosed and filed with the Anti-Money Laundering Council (AMLC), fails to do so.
d. None of the above
8. As a general rule, this court has original jurisdiction to try all cases on money laundering.
a. Regional Trial Court
b. Sandiganbayan
c. Court of Tax Appeals
d. Municipal Trial Court
9. Which of the following has jurisdiction on money laundering case of those committed by public
persons and private persons who are in conspiracy with such public officers?
a. Regional Trial Court
b. Sandiganbayan
 c. Court of Tax Appeals
d. Court of Appeals

10. Should a transaction be determined to be both a covered and a suspicious transaction, the
covered institution shall report the same as?
a. Suspicious transaction
b. Covered Transaction
c. Unlawful activity
d. All of the above
11. This court may issue a freeze order, which shall be effective immediately. The freeze order shall
be for a period of 20 days unless extended by the court.
a. Regional Trial Court
b. Sandiganbayan
c. Court of Tax Appeals
d. Court of Appeals
12. The AMLC, in making decisions related to discharging its functions, needs a total vote of?
a. Majority vote of the three members
b. 1/3 vote
c. Quorum among its members
d. Unanimous vote of the three
13. The following accounts are prohibited by Anti-Money Laundering Law, except:
a. Fictitious accounts
b. Anonymous accounts
c. Numbered accounts
d. Non-checking accounts
14. The maximum or total period of the freeze order for bank accounts related to proceeds of any
unlawful activity is?
a. Six months
b. Twenty days
c. Six months inclusive of the 20-days period
d. Six months exclusive of the 20-days period
15. What is the quantitative threshold for any transaction in cash or other equivalent to be considered
reportable to Anti-Money Laundering Council, in case of casino?
a. A transaction with amount exceeding 5,000,000
b. A transaction with amount exceeding 7,500,000
c. A transaction with amount exceeding 500,000
d. A transaction with amount exceeding 1,000,000
16. What is the quantitative threshold for any transaction in cash or other equivalent to be considered
reportable to Anti-Money Laundering Council, in case of Philippine Offshore Gaming Operators
(POGOs) within the purview of AMLA?
a. A transaction with amount exceeding 5,000,000
b. A transaction with amount exceeding 7,500,000
c. A transaction with amount exceeding 500,000
d. A transaction with amount exceeding 1,000,000
17. What is the quantitative threshold for any single cash transactions, to be considered reportable
to Anti-Money Laundering Council, in case of real estate brokers and developers?
a. A transaction with amount exceeding 5,000,000
b. A transaction with amount exceeding 7,500,000
 c. A transaction with amount exceeding 500,000
d. A transaction with amount exceeding 1,000,000
18. What is the quantitative threshold for any transaction in cash or other equivalent to be considered
reportable to Anti-Money Laundering Council, in case of tax crimes and Included tax crimes with
a threshold in excess of 25 million and violations of the Trade Management Act on the financing
of the proliferation of weapons of mass destruction?
a. A transaction with amount exceeding 25,000,000
b. A transaction with amount exceeding 20, 000,000
c. A transaction with amount exceeding 15, 000,000
d. A transaction with amount exceeding 10,000,000
19. The following are examples of suspicious transactions, except:
a. No underlying legal or trade obligation, purpose, or economic justification
b. Transactions related to unlawful activity, including those committed or about to be
committed
c. Amount involved not commensurate with client’s business or financial capacity.
d. Client is not properly identified
e. All of the above except D
f. None of the above
20. The following are the minimum information/documents required for corporate and judicial
entities, except:
a. Articles of incorporation/Partnership
b. By-laws
c. Official address or principal business address
d. List of directors/partners
e. List of principal stockholders owing at least 2% of the capital stock
f. Contact numbers
g. All of the above except F
h. None of the above
21. In the claim of forfeiture assets, the verified petition shall be filed with the court which rendered
the judgment of conviction and order of forfeiture, within how many days?
a. Fifteen days from the date of the order of forfeiture
b. Twenty days from the date of the order of forfeiture
c. Ten days from the date of the order of forfeiture
d. Six months from the date of the order of forfeiture
22. Statement 1: No court shall issue a temporary restraining order or writ of injunction against any
freeze order issued by the AMLC
Statement 2: The exception to the statement is the Court of Appeals or the Supreme Court
a. Both statements are false
b. Both statements are true
c. Only statement 1 is true
d. Only statement 2 is true
23. Statement 1: Peso and foreign currency non-checking number accounts shall not be allowed
Statement 2: Annual testing may be conducted by the BSP to determine the existence and true
identity of the owners of such accounts
a. Both statements are false
b. Both statements are true
c. Only statement 1 is true
d. Only statement 2 is true
 24. Statement 1: Casinos, including internet and ship-based casinos, with respect to their casino cash
transactions related to the gaming operations are included in the covered institution
Statement 2: Real estate brokers and developers are included as “covered persons,” but only for
single cash transactions involving amounts in excess of 7.5 million, effectively narrowing the
burden of reportorial requirements for high-risk transactions.
a. Both statements are false
b. Both statements are true
c. Only statement 1 is true
d. Only statement 2 is true

25. Which of the following are the functions to be discharged by Anti-Money Laundering Council?
i. To institute civil forfeiture proceedings and all other remedial proceedings through
the Office of the Solicitor General
ii. To cause the filing of complaints with the Department of Justice or the Ombudsman
for the prosecution of money laundering offenses
iii. To initiate investigations of covered transactions, money laundering activities and
other violations of this Act
iv. To freeze any monetary instrument or property alleged to be proceeds of any
unlawful activity;
v. To implement such measures as may be necessary and justified under this Act to
counteract money laundering
vi. To receive and take action in respect of, any request from foreign states for assistance
in their own anti-money laundering operations provided in this Act
a. Statement 1, 2, 4, 5
b. Statement 1, 4, 5
c. Statement 2, 3, 4, 5
d. Statement 1, 2, 3 4, 5

ANSWER KEY:

TRUE/FALSE
1. FALSE
2. FALSE
3. FALSE
4. FALSE
5. TRUE
6. FALSE
7. FALSE
8. TRUE
9. FALSE
10. TRUE
11. FALSE
12. FALSE
13. FALSE
14. FALSE
15. TRUE

MULTIPLE CHOICE QUESTIONS:

1. D
2. D
3. D
4. B
5. A
6. C
7. D
8. A
9. B
10. A
11. D
12. D
13. D
14. C
15. A
16. C
17. B
18. A
19. F
20. H
21. A
22. B
23. D
24. B
25. D
 BANK SECRECY LAW (RA 1405, As Amended) and
UNCLAIMED BALANCES LAW (Act 3936, As Amended by PD 679)

QUESTIONNAIRE

Atizado, Pouline Kate B.

Conde, Marynhel S.
Lalim, Arvin Stephen S.
Mora, Frances Joyce M.
Ogerio, Jude Davidson R.
Priolo, Kyle Ivy A.
Sajonia, Mei – Jie Pearl V.
Sese, Steffanie Rhysse D.
Tatel, Yvette C.
T/F
1. Trust accounts are not covered by RA 1405. F
2. In the event of a deposit, the bank is the debtor and the depositor is the creditor. T
3. The order of a competent court for defamation counts for an exception under RA
1405. F
4. It shall be unlawful for any official or employee of a banking institution to disclose to
any person any information concerning the deposits without exceptions. F
5. Inspection of bank account balance on the account of gross estate determination
requires written consent from the family members of the deceased. F
6. Deposits are characterized as being in the nature of a simple loan. T
7. A competent court can look into deposits of a bank account in cases where the
money deposited is the subject of litigation. T
8. The names and last known place of residence of the family of the depositor with
unclaimed balances is required in the Sworn Statement. F
9. Garnishment violated RA 1405 since the day deposit amount is disclosed. F
10. The purpose of RA 1405 is to encourage private hoarding and discourage people to
deposit their money. F

Multiple Choice Questions

1. Under the Bank Secrecy Law, an act is considered unlawful if:
a. The bank discloses to any person other than a bank director, official, or
bank-authorized employee, information concerning deposits.
b. a party acquired written permission before making any inquiry to the
account of the depositor
c. a written consent for DOSRI accounts is executed before inquiry
d. the results of the examination of accounts for the exclusive purpose of
audit is made by an independent auditor.

2. Mrs. Fabria Castell went to the bank to inquire about her husband's account
balance, but the bank refused to do so. Mrs. Castell argues that his husband told
her that she can check his bank account. Who is correct?
 a. The wife. She is the immediate family so she has rights to whatever inquiry
she has on her husband's account.
b. The wife, because her husband told her to do so.
c. The bank. There must be written consent, not just verbal.
d. The bank. The husband must check for himself.

3. The procedure for escheat include(s):

I. A notice to the depositor will be given at his last known place of residence or
post office address.
II. The bank will then report, through a sworn statement to the Treasurer of the
Philippines the existence of the deposits.
a. I only
b. II only
c. I and II
d. Neither of the two

4. All of the following are exceptions of the bank secrecy law, except:
I. Impeachment cases
II. Inquiries of the Commissioner of BIR
III. Examination by independent auditor for audit purpose only and exclusive use
of the bank
IV. When there is oral permission
a. I only
b. II only
c. III only
d. IV only

5. This ensures that the Bureau of Treasury and its officials and employees are free
from any liability once an account is reactivated.
a. Deed of Understatement
b. Deed of Undertaking
c. Certificate of Good Deed
 d. Certificate of Unclaimed Balance

6. Who initiates the proper escheat proceedings in court?

a. the Army General
b. the Government Officer
c. the Lawyer
d. the Solicitor General

7. The unclaimed balances, together with the increase and proceeds thereof, shall
be deposited with the ________ to the credit of the _________.
a. Solicitor General, Treasurer of the Philippines
b. Senior Auditor of COA, Philippine President
c. Treasurer of the Philippines, Philippine Government
d. Respective banks of the depositors, the bank

8. Sunshine Bank reported to the Anti-Money Laundering Council (AMLC) Mr. Ricci
Tanyo's account in their bank because of suspicious transactions. Mr. Tanyo
demanded that his account not to be inspected until he writes consent. Is Mr.
Tanyo entitled to write his consent?
a. No, reports of banks to AMLC of suspicious transactions is an exception to
the bank secrecy law.
b. Yes, written consent is the most basic requirement.
c. No, the bank will write it.
d. Yes, because it is his private account.

9. Gill Bates deposited $175,000 to RK Bank transacted by Tommy, a bank

employee. To pay for his debts, Tommy examined the bank account of Gill Bates
to see any pattern of withdrawal where he can withdraw a small amount of
money to make it look like transaction costs. Tommy did not get the chance to
withdraw any money. Is Tommy still in violation of R.A. 1405 or Bank Secrecy Law?
a. No. Tommy did not disclose any information to any person and no money
was taken from the bank account.
 b. Yes. He is in violation the moment he transacted the deposit of Gill Bates.
c. No. RK Bank will be held liable for any violation of its employees.
d. Yes. All deposits in bank is considered as of an absolute confidential in
nature and shall not be examined or disclosed by any person.

10. Any violators of R.A. 1405 upon conviction, is subject to:

a. Imprisonment of not more than 5 years.
b. Fine of not more than P20,000.
c. Both (a) and (b).
d. Either (a) or (b) or both.
 BANK SECRECY
AND UNCLAIMED
BALANCES LAW
Questionnaire
BSA 3 - 9

Altatis, Kirsten Kai P.

Catalasan, Charrize Mae O.
De Guzman, Sajid Carlo M.
Famadico, Allysa Fae F.
Overio, Cherilyn S.
Plata, Gemillen V.
Rambuyong, Mary Ann S.
Villanueva, Limuel
Zubiri, Norvic Angelo C.
 QUESTIONNAIRE

I. True or False

True 1. RA 1405 known as Secrecy of Bank Deposits, is declared to be the policy of the
Government to give encouragement to the people to deposit their money in
banking institutions and to discourage private hoarding so that the same may be
properly utilized by banks in authorized loans to assist in the economic development
of the country.

False 2. All deposits of whatever nature with banks or banking institutions in the Philippines
excluding investments in bonds issued by the Government of the Philippines, its
political subdivisions, and its instrumentalities, are hereby considered as of an
absolutely confidential nature and may not be examined, inquired or looked into by
any person, government official, bureau or office.

False 3. A permission from the depositor, whether written, orally, or both, shall be a valid
ground of exception of RA 1405.

True 4. Any violation of RA 1405 will subject the offender upon conviction, to an
imprisonment of not more than five years or a fine of not more than twenty
thousand pesos or both, in the discretion of the court.

True 5. Deposits refer to money or funds placed with a bank that can be withdrawn on the
depositor’s order or demand, such as deposit accounts in the form of savings,
current and time deposits.

True 6. A copy of the sworn statement shall be posted in a conspicuous place in the
premises of the bank, building and loan association, or trust corporation directed
to all persons, other than those named as defendants, requiring them to appear
within sixty days after the first publication of such summons and show cause, if
any they have, why the credit or deposits involved in said action should not be
deposited with the Insular Treasurer.

False 7. If the president, cashier or managing officer of the bank, building and loan
association, or trust corporation neglects or refuses to make and file the sworn
statement required by this action, such bank, building and loan association, or trust

Bank Secrecy and Unclaimed Balances Law

 corporation shall pay to the Government a one-time payment of five hundred
pesos.

False - 8. Immediately upon receipt of the statement, the Insular Treasurer shall publish the
same once a week for three consecutive weeks in at least two newspapers of
spanish
general circulation in the locality where the bank or banks are situated, if there be
any, and if there is none, in the City of Manila, one in English and one in Filipino.

True 9. All banks, trust corporations, and building and loan associations are required to
transfer unclaimed balances held by them to the Treasurer of the Philippines.

False 10. Unclaimed balances shall include credits or deposits of money, bullion security or
other evidence of indebtedness of any kind and interest thereon with banks, as
hereinafter defined, in favor of any person unheard from for a period of not more
than ten years.

II. Multiple Choices

1. What is Republic Act No. 1405?

A. An Act Allowing Minimal Disclosure of or Inquiry into Deposits with any Banking
Institution
B. An Act Prohibiting Disclosure of or Inquiry into Deposits with any Banking Institution
C. An Act Providing Disclosure of or Inquiry into Deposits with any Banking Institution
D. None of the Above

2. What are the deposits covered by Bank Secrecy Law?

A. All deposits of whatever nature with banks or banking institution in the Philippines
B. Some deposits of whatever nature with banks or banking institution in the
Philippines
C. All deposits of whatever nature with banks or banking institution in and outside the
Philippines
D. None of the Above

3. Debt securities which are unconditional obligations of the State, and backed by its full
taxing power. It include treasury bills, treasury notes, retail treasury bonds, dollar linked
peso notes and other risk free bonds.
A. Zero Coupon Bonds
B. Municipal Bonds

Bank Secrecy and Unclaimed Balances Law

 C. Corporate Bonds
D. Government Bonds

4. It shall include credits or deposits of money, bullion security or other evidence of

indebtedness of any kind and interest thereon with banks, as hereinafter defined, in favor
of any person unheard from for a period of ten years or more.
A. Claimed Balances
B. Unclaimed Balances
C. Valid Deposits
D. Bank Statement

5. Unclaimed balances shall include credits or deposits of:

A. Money
B. Bullion
C. Securities
D. All of the Above

6. The following is one of the exceptions of Secrecy of Bank Deposits Law:

A. Upon written permission of the depositor
B. Upon oral permission of the depositor
C. Upon written or oral permission of the depositor
D. None of the Above

7. The General Rule of Secrecy of Bank Deposits is that:

A. All deposits of whatever nature with banks or banking institutions in and outside the
Philippines are hereby considered as of an absolutely confidential nature and may not
be examined, inquired or looked into.
B. Some deposits of whatever nature with banks or banking institutions in the Philippines
are hereby considered as of an absolutely confidential nature and may not be
examined, inquired or looked into.
C. All deposits of whatever nature with banks or banking institutions in the Philippines are
hereby considered as of an absolutely confidential nature and may not be examined,
inquired or looked into.
D. All deposits of whatever nature with banks or banking institutions in the Philippines are
hereby considered as of a quite confidential nature and may not be examined, inquired
or looked into.

8. These are liable under Secrecy of Bank Deposits:

Bank Secrecy and Unclaimed Balances Law

 A. Any person or government official who, or any government bureau or office that
examines, inquires, or looks into a bank deposit or government bond investment in any
of the instances not allowed in Sec.2.
B. Any official or employee of a banking institution who makes a disclosure concerning
bank deposits to another in any instance not allowed by law (Sec. 3, RA No. 1405)
C. Both A and B
D. None of the Above

9. It refers to money or funds placed with a bank that can be withdrawn on the depositor’s
order or demand, such as deposit accounts in the form of savings, current and time
deposits.
A. Deposits
B. Withdrawals
C. Savings
D. Demands

10. The following are penalties for violation of Secrecy of Bank Deposits EXCEPT:
A. Imprisonment not exceeding 5 years in relation with Peso Deposits
B. B Imprisonment of 1 - 5 years in relation with Foreign Currency Deposits
C. Fine not to exceed Php 25,000 in relation with Peso Deposits
D. Fine of Php 5,000 to Php 25,000 in relation with Foreign Currency Deposits

Bank Secrecy and Unclaimed Balances Law

TRUTH IN LENDING ACT (R.A. 3765)

QUESTIONNAIRE

Atizado, Pouline Kate B.

Conde, Marynhel S.

Lalim, Arvin Stephen S.

Mora, Frances Joyce M.

Ogerio, Jude Davidson R.

Priolo, Kyle Ivy A.

Sajonia, Mei – Jie Pearl V.

Sese, Steffanie Rhysse D.

Tatel, Yvette C.
T/F
1. The respective banks shall prescribe such rules and regulations as may be necessary
or proper in carrying out the provisions of RA 3765. F
2. A person who, as their business, rents property on Installment, is considered a
creditor. T
3. The final judgment rendered in any criminal proceeding under RA 3765 to the effect
that a defendant has willfully violated this Act shall not be used as prima facie
evidence until the bank themselves says so. F
4. Any person who willfully violates any provision of this RA 3765 or any regulation issued
thereunder shall be settled only with the respective banks. F
5. No punishment or penalty provided by Truth in Lending Act shall apply to the
Philippine Government or any agency or any political subdivision thereof. T
6. Charges which are not incident to the extension of credit is not required to be
disclosed by a creditor. F
7. Finance charge includes interest, fees, service charges, discounts, and such other
charges incident to the extension of credit as the Board may be regulation
prescribe. T
8. The Monetary Board of the Central Bank of the Philippines shall prescribe such rules
and regulations as may be necessary or proper in carrying out the provisions of R.A.
3765. T
9. Actions to recover penalties may be brought by a person within two years from the
date of the occurrence of the violation, in any court of competent jurisdiction. F
10. The finance charges expressed in terms of pesos and centavos are included in the
required information that is furnished by any creditor to whom the credit is
extended. T

Multiple Choice Questions

1. Under this Act, "Board" refers to the Monetary board of the?

a. International Monetary Fund
b. Securities and Exchange Commission
 c. Central Bank of the Philippines
d. Anti-Money Laundering Council

2. RA 3765 requires
a. lenders to provide you their other clients' bank account information.
b. debtors to disclose their bank account balances to establish credit rating
c. lending institutions to not disclose any kind of information, unless if coming
from lawsuits.
d. items be communicated to borrowed before they should be expected to
accept the terms of a loan or line of credit

3. To increase his business capital, Mr. U. Tang obtained a loan from Kumpare
Company amounting to P150,000 with a finance charge of P500. Kumpare
Company failed to disclose the charges not incidental to the extension of the
credit. How much is the liability of Kumpare Company to Mr. Tang as a result of
non-disclosure of such charges?
a. P100
b. P500
c. P1,000
d. P2,000

4. Mr. U. Tang can recover the liability of Kumpare Company to him within how
many year/s?
a. 1 year from the date of loan.
b. 1 year from the date of occurrence of the violation.
c. 1 year from the maturity date of the loan.
d. 1 year from the settlement date of the loan.

5. The following are covered by RA 3765, except?

I. Individual
II. Corporation
II. Partnership
 IV. Philippine Government or any agency thereof

a. I only
b. II and III
c. IV only
d. None of the above

6. Banks are required to furnish each borrower a copy of the _______, prior to the
consummation of the transaction.
a. Disclosure Statement
b. Certificate of Lending
c. Registration of Borrowing
d. Credit Terms
7. Liability of any creditor who in connection with any credit transaction fails to
disclose to any person any information in violation of this Act or any regulation
issued thereunder shall not exceed to:
a. P5,000
b. P2,000
c. P3,000
d. P4,000
8. The creditor shall be liable for reasonable ___________ in any action in which any
person is entitled to a recovery as determined by the court.
a. Attorney fees
b. Court costs
c. Both a and b
d. None of the above
9. The following are the information required to be furnished by any creditor to
whom the credit is extended, except:
I. Cash price or delivered price of the property or service to be acquired
II. The amounts, if any, to be credited as down payment and/or trade-in
III. The charges, individually itemized, which are paid or to be paid by such person in connection
with the transaction but which are not incident to the extension of credit
 a. I only
b. II only
c. III only
d. All are required

10. Statement 1: The policy behind the Truth in Lending Act is to protect the people
from lack of awareness of the true cost of credit by assuring full disclosure of such
cost, with a view of preventing the uninformed use of credit to the detriment of
the national economy.

Statement 2: The percentage that the finance bears to the total amount to be
financed expressed as a simple annual rate on the outstanding unpaid balance
of the obligation is an information that is included in the furnishing of required
information done by the creditor.

Which of the statements are false?

a. Statement 1 only
b. Statement 2 only
c. All statements are true
d. All statements are false
TRUTH IN LENDING
ACT
Questionnaire
BSA 3 - 9

Altatis, Kirsten Kai P.

Catalasan, Charrize Mae O.
De Guzman, Sajid Carlo M.
Famadico, Allysa Fae F.
Overio, Cherilyn S.
Plata, Gemillen V.
Rambuyong, Mary Ann S.
Villanueva, Limuel
Zubiri, Norvic Angelo C.
 QUESTIONNAIRE

I. True or False

True 1. The declared policy behind the Truth In Lending Act is to protect the people
from lack of awareness of the true cost of credit by assuring full disclosure of
such cost, with a view of preventing the uninformed use of credit to the
detriment of the national economy.

True 2. A finance charge includes interest, fees, service charges, discounts, and such
other charges incident to the extension of credit as may be prescribed by the
Monetary Board of the Bangko Sentral ng Pilipinas through regulations.

False – 3. The information required to be furnished must be disclosed to the debtor or

borrower on or after the consummation of the transaction.
prior

False 4. In case of violations to the Truth in Lending Act, the contract or transaction
becomes void immediately after the occurrence of violation, still subject to
penalties.

False 5. Any creditor who violates the law is liable in the amount of P100 or in an
amount equal to twice the finance charged required by such creditor in
connection with such transaction, whichever is the greater, except that such
liability shall not be less than P2,000 on any credit transaction. The action must
be brought within one year from the date of the occurrence of the violation.

True 6. The creditor is also liable for reasonable attorney’s fees and court costs as
determined by the court.

True 7. No punishment or penalty under this law shall apply to the Philippine
Government or any agency or any political subdivision thereof.

False - 8. One of the information required to be furnished to the debtor or borrower is

the percentage that the finance bears to the total amount to be financed
outstanding
expressed as a simple annual rate on the beginning balance of the obligation.
unpaid
balance

Truth in Lending Act

False 9. TILA provides a range or estimate of how much interest banks or financial
institutions may charge or whether they must grant a consumer loan. This is to
ensure the uniformity of banking transactions in the country.

True 10. For loans covered under TILA, any person can have a right of rescission, which
allows them three (3) days to reconsider their decision and back out of the
loan process without losing any money.

II. Multiple Choices

1. Any person engaged in the business of extending credit (including any person who as a
regular business practice make loans or sells or rents property or services on a time, credit,
or installment basis, either as principal or as agent) who requires as an incident to the
extension of credit, the payment of a finance charge.
A. Creditor
B. Person
C. Board
D. Debtor

2. Any individual, corporation, partnership, association, or other organized group of persons,

or the legal successor or representative of the foregoing, and includes the Philippine
Government or any agency thereof, or any other government, or of any of its political
subdivisions, or any agency of the foregoing.
A. Creditor
B. Person
C. Board
D. Debtor

3. Any person who willfully violates any provision of this Act or any regulation issued
thereunder shall be fined by not less than ______or more than ______or imprisonment
for not less than 6 months, nor more than one year or both.
A. Php1,000; Php3,000
B. Php1,000; Php4,000
C. Php1,000; Php5,000
D. Php1,000; Php6,000

4. Includes interest, fees, service charges, discounts, and such other charges incident to the
extension of credit as the Board may be regulation prescribe.
Truth in Lending Act
 A. Finance Charge
B. Principal Amount
C. Cash Price
D. Tax Charges

5. What is the policy behind the Truth in Lending Act?

A. To protect lenders from lack of awareness of the true cost of credit by assuring enough
disclosure of such cost, with a view of preventing the uninformed use of credit to the
detriment of the national economy.
B. To protect people from lack of awareness of the true cost of credit by assuring
adequate disclosure of such cost, with a view of preventing the uninformed use of
credit to the detriment of the national economy.
C. To protect people from lack of awareness of the true cost of credit by assuring full
disclosure of such cost, with a view of preventing the uninformed use of credit to the
detriment of the national economy.
D. To protect lenders from lack of awareness of the true cost of debit by assuring full
disclosure of such cost, with a view of preventing the uninformed use of debit to the
detriment of the national economy.

6. A finance charge includes EXCEPT:

A. Principal Payment
B. Fees
C. Service Charges
D. Discounts

7. For loans covered under TILA, any person can have a right of rescission, which allows them
______ days to reconsider their decision and back out of the loan process without losing
any money.
A. three (3)
B. four (4)
C. five (5)
D. six (6)

8. The _____ is liable for reasonable attorney’s fees and court costs as determined by the
court in TILA.
A. Debtor
B. Creditor
C. Debtor and Creditor

Truth in Lending Act

 D. Philippine Government

9. What is Republic Act No. 3765?

A. AN ACT TO REQUIRE THE DISCLOSURE OF INTEREST PAYMENTS IN CONNECTION WITH

EXTENSIONS OF DEBIT.
B. AN ACT TO REQUIRE THE DISCLOSURE OF FINANCE CHARGES IN CONNECTION WITH
EXTENSIONS OF DEBIT.
C. AN ACT TO REQUIRE THE NON-DISCLOSURE OF FINANCE CHARGES IN CONNECTION
WITH EXTENSIONS OF CREDIT.
D. AN ACT TO REQUIRE THE DISCLOSURE OF FINANCE CHARGES IN CONNECTION WITH
EXTENSIONS OF CREDIT.

10. Willful violation of any person on any provision of this Act or any regulation issued
thereunder shall be fined,
A. Imprisonment for not less than 6 months or not more than one (1) year
B. Amount not less than P1,000 or not more than P5,000
C. Either A or B
D. EIther A or B or Both A and B

Truth in Lending Act