15. a rise in the general
level of prices of goods
and services over a
period of time in a
certain place.
16. •
•
Banks raise nominal interest rates
to reflect anticipated inflation.
Workers are protected through
the cost of living allowances
which are automatic wage
increases to offset price increases.
17.
18. is the amount purchased
per unit time of goods
which are not consumed
but are to be used for
future production.
19. may be considered as any
activity that uses resources
in such a way that they
allow for greater production
in the future and hence,
greater consumption.
21. it is used to make other
goods and services.
Examples:
* Machines
*Equipments
22. A
corporation’s stock of
goods, such as raw materials,
that are used to produce final
products.
A company’s goods that have
been produced and are waiting
to be sold.
23. the excess income over
current disposable income
or the amount of income
that is not spent or
consumed.
24.
25. is any object or record
that is generally accepted
as payment for goods
and services and
repayment of debts.
26.
27. uses metals such as gold,
silver, nickel, copper and
aluminum.
this can be further classified
according to its metal content
or intrinsic value.
28. the intrinsic value or
metallic content of this
money is equal to its face
value.
29. the intrinsic value of
this money is less than
its face value.
30. is the most preferred and
widely circulated currency for
it is more convenient and
easier to store than metallic
money.
31. is circulated for
transaction-related
purposes and is issued
by the Central Bank or
the government.
32. The paper money in circulation
is composed of the following:
a.
b.
Treasury certificates or
representative money
Fiduciary or Bank Notes
33.
34.
35.
36. it must be durable enough
to stand continuous use.
must not wear out easily.
37. must have uniform
quality and must be the
same in all respects.
49. 1. Transaction motive
arises from people’s
desire for more money to
carry for future exchange of
goods and services.
50. 2. Precautionary motive
money balances are held
because of uncertainty or
worsening economic
expectations.
3. Speculative Motive
money is held when
people think that the price level
will increase in the future.
51.
52. is an organization of 187
countries, working to foster
global monetary cooperation,
secure financial stability,
facilitate international trade,
promote high employment and
sustainable economic growth,
and reduce poverty around the
world.
53. Governing Bodies:
Board of Governors,
Interim Committee,
Executive Board
Managing Director:
Christine Lagarde
from France on July
2011
54. Surveillance
The IMF's regular monitoring
of economies and associated
provision of policy advice is
intended to identify weaknesses
that are causing or could lead to
financial or economic instability.
55. includes credits and loans
extended by the IMF to
member countries with
balance of payment problems
to support policies of
adjustment and reform.
56. The IMF shares its expertise with
member countries by providing
technical assistance and training
in a wide range of areas, such as
central banking, monetary and
exchange rate policy, tax policy
and administration, and official
statistics.
57.
58. is a vital source of financial and
technical assistance to developing
countries around the world.
comparable to a global cooperative,
which is owned by member countries.
59. A partner in strengthening
economies and expanding markets to
improve the quality of life of people
everywhere.
is to help developing countries and
their people reach the goals by
working with our partners to alleviate
poverty.
60. The International Bank for
Reconstruction and Development
(IBRD) --187
The International Development
Association (IDA) --171
The International Finance Corporation
(IFC) --183
63. The
Central Bank of the
Philippines was established
through RA 265 on January 3,
1949.
64. 1. To maintain monetary stability in the
Philippines.
2. To preserve the international value of
peso and its convertibility into other
freely convertible currencies.
3. To foster monetary and credit
exchange conditions conducive to a
balanced economic growth.
65.
66. created through RA 7653
also known as the New Central
Bank Act.
replaced the Central Bank of
the Philippines.
67.
68. 1. To maintain price stability
conducive to a balanced and
sustainable economic growth
2. To promote and preserve
monetary stability and the
convertibility of the national
currency.
69. 1. Provides policy directions with regard
to money, banking, and credit.
2. Supervises operations of banks and
exercises regulatory powers over nonbank financial institutions with quasibanking functions.
70. 1. Liquidity Management
formulation and implementation
of monetary policy aimed at
influencing money supply
consistent with its primary
objective.
71. BSP has the exclusive
power to issue national
currency.
72. Extends discounts, loans
and advances to banking
institutions for liquidity
purposes.
74. BSP seeks to maintain
sufficient international
reserves to meet any
foreseeable net demands for
foreign currencies.
75. The BSP determines
the exchange rate
policy of the
Philippines.
76.
77.
78. BSP also Functions as a banker,
financial advisor and official
depository of the government, its
political subdivisions and
instrumentalities and government
owned and controlled
corporations.
