TOA: SA 3.2 Monetary and Fiscal Policy

What is an advantage of using monetary policy over fiscal policy?

• Monetary policy is less transparent.

• Monetary policy has a quicker impact on the economy.

• Monetary policy requires approval from the legislature.

• Monetary policy has a more targeted effect on specific sectors.

If the Bangko Sentral ng Pilipinas oversees the monetary policy, what institution oversees the fiscal policy of the country?

• Executive Branch (President)

• Legislative Branch (Congress and Senate)

• Both A and B

• None of the Given

What is the primary function of a commercial bank?

• To issue and manage a country's currency

• To accept deposits from customers and offer loans

• To accept deposits from customers and offer loans in rural areas

• To provide investment advice and manage investment portfolios

How does fiscal policy influence the economy?

• Printing more money

• Setting interest rates

• Regulating specific industries

• Government spending and taxation

The Bangko Sentral ng Pilipinas (BSP) is the Philippines' central bank. What is one of its primary responsibilities?

• Setting tax rates

• Managing commercial banks

• Minting paper bills

• Fiscal policy adjustments

What is the difference between a debit card and a credit card?

• Debit cards can only be used for online purchases.

• Debit cards have higher spending limits than credit cards.

• Debit cards offer rewards programs, while credit cards don't.

• Debit cards directly deduct funds from your checking account, while credit cards provide a line of credit.

The BSP uses monetary policy tools to influence the economy. Which of the following is NOT a tool used by the BSP?

• Discount rate

• Reserve requirement ratio

• Open market operations

• Fiscal policy adjustments

Which of the following is a tool of monetary policy used by the central bank?

• Setting tax rates

• Negotiating trade agreements

• Determining government budgets

• Adjusting the reserve requirement for banks

What is a key difference between a commercial bank and a central bank?

• Central banks regulate commercial banks.

• Commercial banks issue a country's currency.

• Commercial banks manage government investments.

• Commercial banks offer higher interest rates on deposits.

What is the primary goal of monetary policy?

• Directly create jobs

• Reduce the national debt

• Increase government revenue

• Manage the supply of money and interest rates