Money and Banking

Question 1

it is a mode of exchange wherein two individuals possess several goods of which the other party wanted, would make enter into a trade agreement.

Answer 1

Barter

Question 2

a current medium of exchange in the form of coins and banknotes.

Answer 2

Money

Question 3

The money of aggregate of money supply that is composed of coins and paper money in circulation, and demand deposits.

Answer 3

M1 (Standard Monies)

Question 4

The money aggregate of money supply that is composed of the contributions from private, public or government, and the foreign sector.

Answer 4

M3 or net performance approach

Question 5

is a way or means of exchange which allows people to possess their needs in order for them to survive.

Answer 5

Money

Question 6

the money aggregate of money supply that is composed those of M1 and money market funds or instruments.

Answer 6

Money equivalents

Question 7

a system of exchange wherein participants in a transaction directly exchange goods or services for other goods or services without using a medium of exchange.

Answer 7

Barter

Question 8

4 money functions as:

Answer 8

Medium of exchange, Unit of account, store value and means of deferred payment.

Question 9

4 shortcomings of barter:

Answer 9

double coincidence of wants, difficult to store, indivisible and portability problems.

Question 10

both the parties have to agree to sell and buy each commodities.

Answer 10

double coincidence of wants.

Question 11

money hold its value over time or money allows to compare the value of different goods.

Answer 11

unit of account

Question 12

money needs to maintain its value to be spent in non-pay days.

Answer 12

store of value

Question 13

is the national currency or medium of payment recognized by a legal system to be valid for meeting a financial obligation.

Answer 13

legal tender

Question 14

payments which are meant to be settled in the future

Answer 14

deferred payments

Question 15

8 characteristics of money

Answer 15

legal tender, stability, limited in supply, portability, durability, divisibility, uniformity and acceptability

Question 16

need to lasts for a long time and should not be perished quickly.

Answer 16

durability

Question 17

appears the same

Answer 17

uniformity

Question 18

limited in supply to generate a value for it.

Answer 18

limited in supply

Question 19

cash must have the option to go any place

Answer 19

portability

Question 20

money must be easily divided to enable a person to buy different products.

Answer 20

divisibility

Question 21

money has to be universal and has to be accepted everywhere

Answer 21

acceptability

Question 22

value fixed by government edict or decree

Answer 22

fiat money

Question 23

utang or promissory note

Answer 23

credit money

Question 24

has value aside from being money or metallic form. e.g: gold and etc

Answer 24

commodity money

Question 25

4 what serves as money

Answer 25

commodity money, fiat money, paper money and credit money

Question 26

the one who examine the money supply and create strategies rotating around it through controlling the loan costs or expanding or dimishing the measure of cash streaming in the economy.

Answer 26

economists

Question 27

is all the currency and the other fluid instruments in a nation’s economy on the date estimated.

Answer 27

money supply

Question 28

the money supply incorporates both

Answer 28

money and deposits

Question 29

narrow money is also called

Answer 29

standard monies

Question 30

formula for standard monies

Answer 30

cash+ paper money+ demand deposit

Question 31

formula for money equivalents

Answer 31

m2+ money market funds

Question 32

formula for net performance approach

Answer 32

private sector contribution+ government contribution+ foreign sector contribution

Question 33

the kind of money which appears in metallic form and whose face value approximates that of the worth of the metal itself is called

Answer 33

commodity money

Question 34

it is the attribute of money that allows it to be held for future use without the loss of value in the meantime

Answer 34

store of value

Question 35

a promissory note is what type of money

Answer 35

credit money

Question 36

in the case of denominations of coins of 1-5 and 10 piso, they shall be legal tender in amount not exceeding

Answer 36

1,000

Question 37

coins in denomination of 1-5 and 10 and 25 sentimo shall be legal tender in amounts not exceeding

Answer 37

100

Question 38

in the case of denominations of coins of 1-5 and 10 piso, they shall be legal tender in amount not exceeding. coins in denomination of 1-5 and 10 and 25 sentimo shall be legal tender in amounts not exceeding. In accordance to

Answer 38

BSP circular no. 537, series of 2006

Question 39

all banknotes and coins issued by the bangko sentral ng pilipinas shall be fully guaranteed by the government of the republic of the philippines and shall be legal tender in the philippines for all obligations, both public and private under

Answer 39

section 52 of republic act no. 7653

Question 40

denominations of .10- to 1 peso not to exceed

Answer 40

50

Question 41

denominations .05 not to exceed

Answer 41

20