Central Banking Quiz

What function of the central bank is exercised by holding foreign currencies, gold, and SDRs?

• Regulation and Supervision

• Monetary Policy Implementation

• Safe Payment Systems

• Custodian of Official Reserves

During times of financial crisis, the BSP performs which function to restore confidence in the financial system?

• Supervising financial technology

• Issuing new banknotes

• Acting as lender of last resort

• Regulating foreign trade

Who chairs the Monetary Board of the Bangko Sentral ng Pilipinas?

• The Secretary of Finance

• The Deputy Governor

• The President of the Philippines

• The BSP Governor

Which BSP sector is responsible for regulating fintech companies and payment systems?

• Regional Operations and Advocacy Sector

• Financial Supervision Sector

• Monetary and Economics Sector

• Payments and Currency Management Sector

Why is it important for the central bank to hold the monopoly over currency issuance?

• To prevent inflation and loss of trust due to private money creation

• To centralize wealth distribution

• To allow unlimited printing of money

• To ensure price control of commodities

Which of the following is NOT part of the BSP’s mandate?

• Maintaining price stability to support economic growth

• Promoting financial stability and supervising banks

• Managing the country’s national budget and government spending

• Ensuring an efficient payments and settlements system

What is the main objective of BSP’s monetary policy?

• Maintaining stable exchange rates to strengthen the peso internationally

• Low and stable inflation conducive to a balanced and sustainable economic growth

• Expanding money supply to boost consumption and business activity

• Achieving long-term financial stability by increasing bank reserves

Which of the following is the Central Bank's function of promoting financial stability?

• Supervising banks and other financial institutions

• Conducting seminars on financial literacy for students

• Collecting taxes from businesses and individuals

• Issuing business permits for private companies

Raising policy interest rates to reduce inflation is an example of:

• Expansionary

• Neutral monetary policy

• Contractionary

• Countercyclical fiscal policy

BSP’s dedication to the nation and its economic stability is best reflected in which core values?

• Nationalism

• Patriotism

• Accountability

• Professionalism