F.A. Monetary and Fiscal Policy

What institution crafts and impelements the monetary polic of the Philippines?

• Department of Finance

• Department of Budget and Management

• Lower (Congress) and Upper House (Senate)

• Bangko Sentral ng Pilipinas

Answer explanation

The institution that crafts and implements the monetary policy of the Philippines is Bangko Sentral ng Pilipinas.

Which of the following is not a characteristic of money?

• Stable

• Acceptable

• Durable

• Abundant

Answer explanation

The correct choice is 'Abundant' because money is not meant to be abundant but rather scarce to maintain its value and purchasing power.

Which of the following is not one of the primary roles of money in the economy?

• Medium of Exchange

• Measure of Power

• Store of Value

• Unit of Account

Answer explanation

The correct choice is 'Measure of Power' because money is not primarily used as a measure of power in the economy.

Which of the following is not an example of plastic money?

• Cryptocurrency

• Debit Card

• Credit Card

• Prepaid Cash Card

Answer explanation

Cryptocurrency is not an example of plastic money because it is a digital currency that operates independently of traditional banking systems.

Which characteristic of money ensures its long-term value?

• Stable

• Acceptable

• Durable

• Abundant

Answer explanation

The characteristic of money that ensures its long-term value is stability, as it needs to maintain a consistent value over time.

What do you call to the measures utilized by the Bangko Sentral ng Pilipinas to control the overall money supply and promote economic growth in the country?

• Fiscal Policy

• Monetary Policy

• Financial Policy

• Monetary and Fiscal Policy

Answer explanation

Monetary Policy is the term used for the measures utilized by the Bangko Sentral ng Pilipinas to control the overall money supply and promote economic growth in the country.

When the Bangko Sentral ng Pilipinas increases interest rate, what monetary policy is being implemented?

• Extensionary

• Constructionary

• Contractionary

• Expansionary

Answer explanation

When the Bangko Sentral ng Pilipinas increases interest rate, it is implementing a contractionary monetary policy to reduce inflation and slow down economic growth.

When the Bangko Sentral ng Pilipinas decreases interest rate, what monetary policy is being implemented?

• Extensionary

• Constructionary

• Contractionary

• Expansionary

Answer explanation

When the Bangko Sentral ng Pilipinas decreases interest rate, it is implementing an Expansionary monetary policy to stimulate economic growth by encouraging borrowing and spending.

What is the primary function of the Bangko Sentral ng Pilipinas in the Philippine economy?

• Regulating the stock market

• Controlling inflation

• Issuing passports

• Managing public transportation

Answer explanation

The primary function of the Bangko Sentral ng Pilipinas in the Philippine economy is controlling inflation, not regulating the stock market, issuing passports, or managing public transportation.

Which of the following is considered a tool of monetary policy?

• Building roads and bridges

• Setting minimum wage

• Adjusting interest rates

• Providing healthcare services

Answer explanation

Adjusting interest rates is considered a tool of monetary policy, as it directly impacts the economy by influencing borrowing, spending, and investment.