BSP Trend

What is the primary institution responsible for central banking in the Philippines?

• Bank of the Philippine Islands

• Union Bank of the Philippines

• Philippine National Bank

• Bangko Sentral ng Pilipinas

What is the dual mandate of the Bangko Sentral ng Pilipinas (BSP)?

• Foreign exchange stability and trade balance

• Financial inclusion and digital transformation

• Interest rate control and inflation targeting

• Price stability and sustainable economic growth

Which global event has significantly contributed to persistent inflationary pressures?

• Asian financial crisis

• Global financial crisis

• World War II

• COVID-19 pandemic

What has been a major consequence of the US Federal Reserve's high interest rates?

• Capital outflows from emerging markets

• Strengthening of the Philippine peso

• Decreased inflation in the Philippines

• Increased capital inflows to the Philippines

What is one of the main challenges faced by the BSP in inflation targeting?

• Weak currency

• High unemployment rates

• Supply-side shocks

• Low consumer spending

What type of inflation is caused by supply-side shocks?

• Hyperinflation

• Built-in inflation

• Cost-push inflation

• Demand-pull inflation

What is a potential risk of the BSP raising interest rates too aggressively?

• Increased consumer spending

• Higher investment rates

• Suppressed economic growth

• Strengthened currency

What does the BSP's inflation-targeting framework aim to keep inflation within?

• 4-6%

• 1-3%

• 3-5%

• 2-4%

What is Project Agila?

• A fiscal policy reform

• A digital currency initiative

• A financial literacy program

• A monetary policy framework

What is a key objective of adopting Central Bank Digital Currencies (CBDCs)?

• To increase interest rates

• To improve payment efficiency

• To eliminate cash entirely

• To reduce government spending