money and the financial sector

What is one of the functions of money mentioned in the text?

• Medium of transportation

• Medium of communication

• Medium of instruction

• Medium of exchange

Which term refers to the sum total of all currency and liquid assets in a country's economy?

• Money inflation

• Money circulation

• Money demand

• Money supply

What is the main task of the Bangko Sentral ng Pilipinas?

• Reduce employment

• Promote inflation

• Decrease real income

• Maintain monetary stability

What does M2 represent in the money supply?

• M1 + savings and small time deposits

• M1 + large time deposits

• M1 + foreign currency deposits

• M1 + government securities

Which policy aims to raise the money supply by lowering interest rates?

• Contractionary Money Policy

• Monetary Policy

• Expansionary Money Policy

• Fiscal Policy

What is the function of money that allows it to be used for future commitments?

• Medium of exchange

• Store value

• Unit of account

• Standard of deferred payment

What does M3 represent in the money supply?

• M2 + government securities

• M2 + peso deposit substitutes

• M2 + large time deposits

• M2 + foreign currency deposits

What is the purpose of open market operations by the BSP?

• Purchase and sale of real estate

• Purchase and sale of stocks

• Purchase and sale of foreign currency

• Purchase and sale of government securities

Which sector plays an important role in mobilizing savings and investments in the economy?

• Manufacturing Sector

• Financial Sector

• Service Sector

• Agricultural Sector

What is the main goal of contractionary money policy?

• Reduce interest rates

• Decrease a nation's money supply to curb inflation

• Increase a nation's money supply to boost inflation

• Maintain a stable money supply