WEEK 2 - CENTRAL BANKS

Question 1

are essential institutions, typically focused on keeping prices stable,
maximizing employment, and helping a country’s economy grow.

Answer 1

Central banks

Question 2

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).

Answer 2

Inflation

Question 3

is a sign that the economy is growing, often because demand outpaces supply and consumers are willing to spend more money on goods.

Answer 3

Inflation

Question 4

But high inflation is a
problem because it discourages ________ and _______ and wipes out people’s savings
as it erodes the value of money.

Answer 4

investment and lending

Question 5

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.

Answer 5

Deflation

Question 6

Pilipinas is the central bank of the Philippines.

Answer 6

Bangko Sentral ng Pilipinas

Question 7

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

Answer 7

July 3, 1993

Question 8

The provision of Republic Act 7653 or the New Central Bank Act of 1993 as amended by ___________________

Answer 8

Republic Act 11211 or the New Central Bank Act of 2019

Question 9

Current Governor of BSP

Answer 9

Eli Remolona Jr.

Question 10

The BSP’s main responsibility is to formulate and implement policy in the areas of ________, ________ and ______ with the primary objective of preserving _______.

Answer 10

1. money
2. banking
3. credit
4. price stability

Question 11

refers to a condition of low and stable inflation

Answer 11

Price stability

Question 12

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).

Answer 12

systemic risks

Question 13

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.

Answer 13

1. price and
2. financial stability
3. monetary stability and
4. convertibility

Question 14

was launched in February 2022. It replaces the quarterly publication of the Inflation Report and serves as the flagship BSP publication on monetary policy.

Answer 14

Monetary Policy Report

Question 15

which exercises the powers and functions of the BSP, such as the
conduct of monetary policy and supervision of the financial system;

Answer 15

Monetary board

Question 16

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;

Answer 16

Monetary Stability Sector

Question 17

which enforces and monitors compliance to banking laws to promote a sound and healthy banking system; and

Answer 17

Supervision and examination sector

Question 18

which serves the human, financial and physical resource needs of the BSP.

Answer 18

Resource management setor

Question 19

In September 2001, the _______________, was made into law.

Answer 19

Anti-money laundering act or AMLA

Question 20

a criminal offense, and
prescribed corresponding penalties.

Answer 20

AMLA

Question 21

AMLA has also provided the foundation for a central
monitoring and implementing council called the ___________

Answer 21

Anti-money laundering council

Question 22

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.

Answer 22

Anti-Money Laundering Law

Question 23

As a matter of practice, central banks regularly change the designs of their money - whether coins or banknotes - to guard against ________.

Answer 23

Counterfeiters

Question 24

Other central banks redesign their banknotes every _______ years on average, our present currency series has been in place for about _____ years now.

Answer 24

1. 10 years
2. 25 years

Question 25

All of our six banknote denomiations will have new designs:

Answer 25

1. 20 piso
2. 50 piso
3. 100-piso
4. 200-piso
5. 500-piso
6. 1000-piso