30 Questions
What is one of the main functions of a central bank mentioned in the text?
Promoting expansion of the banking industry
Why does the central bank act as a lender of last resort according to the text?
To prevent bank closures and maintain public trust in the banking system
How do banks contribute to the economy according to the text?
By providing funds for agricultural and industrial projects
What impact can inefficient bank management have on the banking system based on the text?
It can lead to bank failures and closures
Why is it essential for a central bank to promote an efficient banking industry?
To boost economic development
What role does a central bank play when providing assistance to distressed banks as mentioned in the text?
It helps distresed banks with loans and management assistance
How were the governors and subgovernors appointed in the operations of the bank?
By the government
Who were represented by a board of fifteen regents elected by the biggest stockholders?
Private stockholders
In which country was the Bank of Netherlands founded with private capital?
Netherlands
Who appointed the president and secretary of the managing board of the Bank of Netherlands?
Government
How were the top officials of the Bank of Norway appointed despite it being funded with private capital?
By the king
In what timeframe did most countries in Europe and other parts establish their own central banks?
End of 1800
What distinguishes a central bank from commercial banks and other private financial institutions?
Central banks pursue national interests and public welfare.
What does a central bank prioritize in terms of socioeconomic goals?
Price stability and economic growth
Based on the text, what is the primary reason for the existence of a central bank?
To pursue national interests and public welfare
What aspect of the economy does a central bank primarily aim to stabilize?
Inflation rates
Why is a central bank not considered a profit maximizer?
Because it prioritizes public welfare over profits
What does the quote 'Inflation is always and everywhere a monetary phenomenon' imply about the relationship between inflation and monetary factors?
'Inflation' is directly tied to 'monetary phenomenon'.
What role does the central bank play in a poor country according to the text?
Directing flow of money and credit into various sectors of the economy
How can liberal bank loans benefit the poor as mentioned in the text?
Assist in setting up small businesses or income-producing projects
What is the principal thrust of any economic program according to the text?
Economic efficiency with social justice
What is the primary function of the Bangko Sentral ng Pilipinas (BSP) as stated in the text?
Providing direction in money, credit, and banking fields
How can access to credit facilities benefit the poor according to the text?
Help in improving their standard of living
In what way can a central bank contribute positively to society according to the text?
By utilizing its vast resources with competence and social responsibility
When was bank supervision introduced in the Philippines?
During the American Period
Under which government department was the Bureau of Banking placed in 1929?
Department of Finance
What was the primary role of the Central Bank of the Philippines established in 1949?
Administer the monetary, banking, and credit system
Which entity was authorized to supervise and examine banks and banking activities in 1900?
Bureau of Treasury
What did the establishment of more banks signify during the American Period?
More opportunities for citizens to invest
Where were bank supervision and examination placed after the opening of the Central Bank of the Philippines?
Central Bank of the Philippines
Test your knowledge on the establishment and governance of the Bank of Netherlands, one of the oldest central banks. Learn about the roles of government-appointed officials and private stockholders in central banking operations.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
