Philippines Sample Quiz

Deflation is the opposite of inflation and means that prices are decreasing over time.

In 2022, a movie ticket cost ₱250. In 2023, the same ticket costs ₱275. What is the inflation rate for movie tickets?

• 8%

• 10%

• 12%

• 15%

If the inflation rate is higher in the Philippines than in other countries, the Philippine peso will likely strengthen against foreign currencies.

Which of the following is a way to measure inflation in the Philippines?

• Gross Domestic Product (GDP)

• Consumer Price Index (CPI)

• Stock Market Index

• Unemployment Rate

Inflation benefits borrowers because the real value of the money they repay decreases over time.

Which of the following is most likely to happen during periods of high inflation?

• People will save more money in banks.

• The cost of borrowing money will decrease.

• Prices of goods and services will rise rapidly.

• The value of the currency will increase.

Hyperinflation is a situation where prices rise extremely quickly, often exceeding 50% per month.

Which of the following is an example of a 'cost-push' inflation?

• Increased consumer spending driving up prices

• Higher wages leading to higher production costs

• A decrease in the money supply

• A strong currency reducing import prices

Compound interest earns more than simple interest over time because it includes interest on previously earned interest.

If you invest ₱25,000 at a compound interest rate of 5% per year, compounded annually, how much will you have after 3 years?

• ₱28,500

• ₱28,940

• ₱29,000

• ₱30,000