Government Monetary Standards Quiz

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What is the ultimate basic standard of value upon which all other kinds of money are convertible?

Gold Standard

Commodity/Metallic Standard (correct)

Managed Currency Standard

Silver Standard

What characterizes a Managed Currency Standard?

Issued against gold and silver reserves

No control over the credit system

Maintaining reserves to back up the domestic money supply

Inconvertible and irredeemable paper money (correct)

What is one of the objectives of a Managed Currency Standard?

Reduce wealth distribution

Ensure an unstable price level

Encourage deflation

Promote full employment (correct)

Which type of money refers to paper currency not backed by any physical commodity like gold or silver?

Fiat Money Signup and view all the answers

What does a Managed Currency Standard aim to do in terms of the international value of the currency?

Stabilize the international value Signup and view all the answers

Which entity is authorized to exercise control over the credit system in a Managed Currency Standard?

Central Bank Signup and view all the answers

What is the main advantage of a managed currency standard?

Easy issuance of paper money without increasing taxes Signup and view all the answers

Why might a managed currency standard lead to erratic fluctuation of prices?

Foreign exchange rates are not fixed by metallic content Signup and view all the answers

What is a disadvantage of a managed currency standard related to taxation?

Easy issuance of paper money without increasing taxes Signup and view all the answers

How does a managed currency standard affect the risk of inflation?

Reduced risk of inflation due to over-issuance of money Signup and view all the answers

What aspect of a managed currency standard allows for competitive monetary depreciation?

Increased issuance of paper money without tax hikes Signup and view all the answers

What was the basic currency unit in the American regime in the Philippines?

Silver peso Signup and view all the answers

Which bank was authorized to issue its own bank notes in the Philippines from 1908-1933?

Bank of the Philippine Island Signup and view all the answers

Under which standard was the Philippine peso kept at par with the dollar?

Dollar Exchange Standard Signup and view all the answers

What type of currency did the occupying Japanese government issue during World War II in the Philippines?

Fiat currency Signup and view all the answers

When was the Central Bank of the Philippines established?

January 3, 1949 Signup and view all the answers

Which series of Central Bank Notes followed the Pilipino Series from 1969-1973?

(Ang Bagong Lipunan Series (1973-1985) Signup and view all the answers

Which series of Central Bank Notes highlighted the country's social and political development and economic achievements?

(New Design Series (1985-2017) Signup and view all the answers

When were the New Generation Currency Series banknotes demonetized?

After June 30, 2017 Signup and view all the answers

What unique distinction did the 100,000-piso Centennial banknote hold?

(World's largest legal tender note Signup and view all the answers