Bangko Sentral's Monetary Operations Quiz
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Questions and Answers

What is the overnight reverse repurchase (RRP) rate used for in the interest rate corridor (IRC) system?

  • Contracting liquidity through selling government securities to banks
  • Absorbing residual system liquidity to prevent market interest rates from falling
  • Expanding liquidity through buying government securities from banks
  • Guiding short-term market rates towards the BSP policy interest rate (correct)
  • What is the primary purpose of a reverse repurchase (RRP) operation by the BSP?

  • Guiding market rates towards the BSP policy interest rate
  • Acting as the seller of government securities to contract liquidity (correct)
  • Absorbing residual system liquidity to prevent market interest rates from falling
  • Expanding liquidity by selling government securities to banks
  • What is the role of the standing overnight deposit facility in the monetary operations of the Bangko Sentral?

  • Guiding short-term market rates towards the BSP policy interest rate
  • Absorbing residual system liquidity to prevent market interest rates from falling (correct)
  • Expanding liquidity through buying government securities from banks
  • Acting as the seller of government securities to contract liquidity
  • What does the interest rate for the overnight deposit facility depend on?

    <p>The RRP rate minus 50 bps</p> Signup and view all the answers

    Which monetary instrument of the Bangko Sentral aims at influencing the underlying demand and supply conditions for central bank money?

    <p>Government securities</p> Signup and view all the answers

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