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Questions and Answers
What is the basic function of the financial system?
What is the basic function of the financial system?
- Facilitating international trade transactions
- Regulating the stock market and commodity trading
- Providing insurance services to individuals and businesses
- Moving funds from surplus to shortage through financial markets and intermediaries (correct)
Which institution is the central bank of the Republic of the Philippines?
Which institution is the central bank of the Republic of the Philippines?
- Development Bank of the Philippines (DBP)
- Land Bank of the Philippines (LBP)
- Bangko Sentral ng Pilipinas (BSP) (correct)
- Philippine Stock Exchange (PSE)
What is the mandated responsibility of BSP regarding the control of banking system resources or assets?
What is the mandated responsibility of BSP regarding the control of banking system resources or assets?
- Supervising the investment portfolios of banks
- Managing the foreign exchange reserves
- Regulating the interest rates on loans and deposits
- Ensuring 60 percent control by domestic banks majority-owned by Philippine nationals (correct)
Which of the following is a responsibility of BSP as the central bank?
Which of the following is a responsibility of BSP as the central bank?
What does the financial system aim to manage in terms of risk?
What does the financial system aim to manage in terms of risk?
Flashcards
Basic Function of Financial System
Basic Function of Financial System
The process of transferring money from those who have a surplus to those who need it, using institutions like banks and markets.
Bangko Sentral ng Pilipinas (BSP)
Bangko Sentral ng Pilipinas (BSP)
The central bank responsible for managing the Philippine financial system and its currency.
BSP's Role in Banking Asset Control
BSP's Role in Banking Asset Control
Ensuring that 60% of banking resources are controlled by domestic banks majority-owned by Filipinos.
Monetary Policy
Monetary Policy
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Systemic Risk
Systemic Risk
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Study Notes
Financial System
- The basic function of the financial system is to facilitate the flow of money and credit between savers and borrowers.
Central Bank of the Philippines
- The Bangko Sentral ng Pilipinas (BSP) is the central bank of the Republic of the Philippines.
Mandated Responsibility of BSP
- The BSP is mandated to control the banking system resources or assets.
Responsibilities of BSP
- One of the responsibilities of BSP as the central bank is to regulate the banking system.
Financial System Risk Management
- The financial system aims to manage credit risk, liquidity risk, and market risk.
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