Managerial Economics Quiz

Money serves as a medium of exchange, a unit of account, and a store of value.

• True

• False

Inflation is the rate at which the general level of prices for goods and services is rising, leading to a decrease in the purchasing power of a currency.

• True

• False

Bangko Sentral ng Pilipinas (BSP) is the central bank of the Philippines, responsible for regulating and supervising the banking system.

• True

• False

The primary tool used by central banks to control the money supply is fiscal policy.

• True

• False

Open market operations involve the buying and selling of government securities by a central bank to influence the money supply and interest rates.

• True

• False

Deflation is the opposite of inflation, representing a general decrease in the prices of goods and services.

• True

• False

The gold standard is a monetary system in which the value of a country's currency is directly tied to a specific quantity of gold.

• True

• False

Barter is the exchange of similar commodities between two parties.

• True

• False

FCDU means foreign currency dollar unit.

• True

• False

As a lender of last resort, a Filipino may borrow directly from BSP in times of emergencies.

• True

• False