3 Questions
What is the main goal of a central bank?
To stabilize the currency, keep unemployment low, and prevent inflation
When was the BSP established?
1993
Why was the implementation of the central bank law delayed in 1944?
The arrival of American forces
Study Notes
- BSP is the central bank of the Philippines, established in 1993.
- It took over from the Central Bank of the Philippines, established in 1949.
- BSP has fiscal and administrative autonomy from the government.
- Central banking aims at national welfare, not profits, and has a special relationship with the government and commercial banks.
- Central banking is an independent national authority that conducts monetary policy, regulates banks, and provides financial services.
- Its goals are to stabilize the currency, keep unemployment low, and prevent inflation.
- A central bank for the Philippines was conceptualized in 1933, and a law was passed in 1939 but disapproved by President Roosevelt.
- Another law was passed in 1944 but was not implemented due to the arrival of American forces.
- The Philippines was on the exchange standard using the US dollar as the standard currency.
- The central bank should have overall control over the financial system.
Do you know the history and functions of the Bangko Sentral ng Pilipinas (BSP)? Test your knowledge with this quiz! From its establishment in 1993 to its role in regulating banks and stabilizing the economy, this quiz will challenge you to recall the important details about the BSP's history and mandate. Brush up on your knowledge of central banking and see how much you really know about this vital institution in the Philippines.
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