Philippine Banking and Money Supply Quiz

Banking Sector in the Philippines

• Concentration of banking assets in a few large banks contributed to concerns of oligopoly in the banking sector in the Philippines.

Economic Stability and Unemployment

• The introduction of monetary and fiscal policies led to stability in the Philippines but resulted in decreased output and increased unemployment.

Monetary Policy and Its Consequences

• Rapid money supply growth was implemented to stabilize the economy in the Philippines, but it led to high inflation.

Economic and Political Events

• The Philippines experienced economic instability and crisis due to economic and political events.

Interest Rates in the Philippines

• In 1988, large depositors earned the highest interest rates on their savings.

Savings Interest Rates

• The average interest rate earned by small savers on their savings was around 10% in 1988.

Time Deposit Interest Rates

• In 1988, the interest rates for six-month and twelve-month time deposits differed by around 2%.

Savings Deposits

• Savings deposits accounted for around 40% of total bank deposits in the Philippines.

Time Deposit Interest Rates

• Interest rates of time deposits were bid up in the Philippines due to high demand.