WEEK 2 - CENTRAL BANKS Flashcards
are essential institutions, typically focused on keeping prices stable,
maximizing employment, and helping a country’s economy grow.
Central banks
occurs when prices continue to rise, meaning a country’s currency is worth less than it was before because it can’t buy as much (also known as a decline in purchasing
power).
Inflation
is a sign that the economy is growing, often because demand outpaces supply and consumers are willing to spend more money on goods.
Inflation
But high inflation is a
problem because it discourages ________ and _______ and wipes out people’s savings
as it erodes the value of money.
investment and lending
is the opposite of inflation—when there is a decline in prices. Too much can drive higher rates of unemployment, and can eventually cause consumers
to default on debt obligations.
Deflation
Pilipinas is the central bank of the Philippines.
Bangko Sentral ng Pilipinas
BSP was established on
____________ pursuant to the provision of Republic Act 7653 or the New Central Bank Act of
1993 as amended by Republic Act 11211 or the New Central Bank Act of 2019
July 3, 1993
The provision of Republic Act 7653 or the New Central Bank Act of 1993 as amended by ___________________
Republic Act 11211 or the New Central Bank Act of 2019
Current Governor of BSP
Eli Remolona Jr.
The BSP’s main responsibility is to formulate and implement policy in the areas of ________, ________ and ______ with the primary objective of preserving _______.
- money
- banking
- credit
- price stability
refers to a condition of low and stable inflation
Price stability
To help promote financial stability and a secure and reliable banking system, the BSP manages
__________ and ensures the safe and sound operation of banks and other BSFIs-BSP-Supervised Financial Institutions (BSFIs).
systemic risks
The primary objective of the Bangko Sentral ng Pilipinas is to promote ______ and _________ conducive to balanced and sustainable economic growth. It also seeks to maintain _________ and the__________ of the peso.
- price and
- financial stability
- monetary stability and
- convertibility
was launched in February 2022. It replaces the quarterly publication of the Inflation Report and serves as the flagship BSP publication on monetary policy.
Monetary Policy Report
which exercises the powers and functions of the BSP, such as the
conduct of monetary policy and supervision of the financial system;
Monetary board
takes charge of the formulation and implementation of the BSP’s monetary policy, including serving the banking needs of all banks through accepting deposits, servicing withdrawals and extending credit through the rediscounting facility;
Monetary Stability Sector
which enforces and monitors compliance to banking laws to promote a sound and healthy banking system; and
Supervision and examination sector
which serves the human, financial and physical resource needs of the BSP.
Resource management setor
In September 2001, the _______________, was made into law.
Anti-money laundering act or AMLA
a criminal offense, and
prescribed corresponding penalties.
AMLA
AMLA has also provided the foundation for a central
monitoring and implementing council called the ___________
Anti-money laundering council
In February 2013, Philippine President Benigno Aquino III signed “R.A. No. 10365” known as An act further strengthening the ____________, which aims to strengthen the AMLC by requiring that any suspicious transaction in foreign exchange, real estate, and jewelry and precious metal trading be reported.
Anti-Money Laundering Law
As a matter of practice, central banks regularly change the designs of their money - whether coins or banknotes - to guard against ________.
Counterfeiters
Other central banks redesign their banknotes every _______ years on average, our present currency series has been in place for about _____ years now.
- 10 years
- 25 years
All of our six banknote denomiations will have new designs:
- 20 piso
- 50 piso
- 100-piso
- 200-piso
- 500-piso
- 1000-piso
