Bangko Sentral ng Pilipinas (BSP) Functions

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Which of the following scenarios best illustrates the Monetary Board's role in governing the Bangko Sentral ng Pilipinas?

The Monetary Board convenes to assess current inflation trends and adjusts monetary policy to maintain price stability. (correct)
A private bank experiencing liquidity issues seeks direct financial assistance from the BSP Governor.
The BSP Governor, without consulting the Monetary Board, decides to lower interest rates to stimulate economic growth.
A newly appointed deputy governor begins implementing changes to the BSP's internal administration without approval from the Monetary Board.

If the Payments and Currency Management Sector (PCMS) discovers a widespread counterfeiting operation, what would be its MOST likely course of action?

Implement a new regulatory framework for all financial institutions to prevent future occurrences.
Publicly announce the details of the counterfeit currency to educate the public.
Collaborate with law enforcement agencies to investigate and dismantle the counterfeiting operation. (correct)
Increase the money supply to dilute the impact of the counterfeit currency.

How does the establishment of the Bangko Sentral ng Pilipinas (BSP) in 1993 differ from its predecessor, the Central Bank of the Philippines, established in 1949?

The BSP has a narrower mandate, focusing solely on currency management.
The BSP was founded with a greater emphasis on fiscal policy rather than monetary policy.
The BSP operates with less government oversight compared to the Central Bank of the Philippines.
The BSP was created with greater autonomy and a stronger legal foundation under the 1987 Constitution and the New Central Bank Act. (correct)

Which action best exemplifies the function of the Financial Supervision Sector (FSS) of the Bangko Sentral ng Pilipinas (BSP)?

Issuing new regulations to govern the operations of banks and other financial institutions. (C) Signup and view all the answers

What is the role of the Corporate Services Sector (CSS) in supporting the Bangko Sentral ng Pilipinas (BSP)?

Managing the BSP's human, financial, and physical resources. (D) Signup and view all the answers

Given the responsibilities of the Monetary and Economics Sector (MES), which scenario would MOST directly fall under its purview?

A significant increase in unemployment rates impacting economic growth. (A) Signup and view all the answers

If the Governor of the Bangko Sentral ng Pilipinas (BSP) is temporarily unable to perform their duties, who assumes the Governor's responsibilities?

A Deputy Governor designated by the Governor prior to their absence. (B) Signup and view all the answers

How does the structure of the Monetary Board ensure a balance between public and private sector interests in governing the BSP?

The Monetary Board includes both full-time members from the private sector and a cabinet member, with the BSP Governor as chairman. (C) Signup and view all the answers

Bangko Sentral ng Pilipinas (BSP)

The central monetary authority of the Philippines, established on July 3, 1993.

July 3, 1993

The date the BSP was established.

Monetary Board

Exercises the powers and functions of the BSP, including monetary policy and financial system supervision.