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Questions and Answers
What is one primary function of money?
What is one primary function of money?
- Standard of Technological Advancement
- Unit of Property Ownership
- Medium of Exchange (correct)
- Manager of Economic Growth
What does the term 'Token Money' refer to?
What does the term 'Token Money' refer to?
- Rare metals traded for immediate goods
- Currency with real value equal to its face value
- Legal tender issued by a central bank
- Money whose face value is higher than intrinsic value (correct)
Why is durability considered a useful characteristic of money?
Why is durability considered a useful characteristic of money?
- It allows money to remain relevant regardless of economic changes.
- It allows money to appreciate in value over time.
- It guarantees that money can be used for all types of exchanges.
- It ensures that money does not wear out easily during transactions. (correct)
What problem was created by using uncoined metals?
What problem was created by using uncoined metals?
Which of these is a feature that distinguishes coined metallic money from uncoined metals?
Which of these is a feature that distinguishes coined metallic money from uncoined metals?
What is one disadvantage of using paper money?
What is one disadvantage of using paper money?
Which of these statements about credit money is true?
Which of these statements about credit money is true?
What defines a fully bodied coin?
What defines a fully bodied coin?
What was used as currency during the Japanese occupation in the Philippines?
What was used as currency during the Japanese occupation in the Philippines?
Which bank was established following the independence of the Philippines in 1946?
Which bank was established following the independence of the Philippines in 1946?
What nickname was given to the war notes during the Japanese occupation?
What nickname was given to the war notes during the Japanese occupation?
Which series of notes were first issued by the Central Bank of the Philippines?
Which series of notes were first issued by the Central Bank of the Philippines?
What was the primary language used in Philippine currency notes before the establishment of the Central Bank in 1949?
What was the primary language used in Philippine currency notes before the establishment of the Central Bank in 1949?
How did the outbreak of World War II affect the Philippine monetary system?
How did the outbreak of World War II affect the Philippine monetary system?
What year did the Philippines gain independence from the United States?
What year did the Philippines gain independence from the United States?
What material were the English series coins minted from?
What material were the English series coins minted from?
What tactile feature is primarily responsible for helping the public recognize banknotes?
What tactile feature is primarily responsible for helping the public recognize banknotes?
What characteristic of the security thread is true for the 100-, 200-, 500- and 1000-piso notes?
What characteristic of the security thread is true for the 100-, 200-, 500- and 1000-piso notes?
At what angle must the note be tilted to clearly see the concealed value?
At what angle must the note be tilted to clearly see the concealed value?
Which feature on banknotes provides the highest level of tactile anti-counterfeiting protection?
Which feature on banknotes provides the highest level of tactile anti-counterfeiting protection?
What is the purpose of the cleartext found on the security thread of higher denomination notes?
What is the purpose of the cleartext found on the security thread of higher denomination notes?
The main material used for traditional banknotes to provide a tactile effect is:
The main material used for traditional banknotes to provide a tactile effect is:
Which of the following elements contributes to the visual security of banknotes?
Which of the following elements contributes to the visual security of banknotes?
What type of security feature is primarily used as a first line of defense against counterfeiting?
What type of security feature is primarily used as a first line of defense against counterfeiting?
What was the purpose of the redesign announced by the Bangko Sentral ng Pilipinas in 2009?
What was the purpose of the redesign announced by the Bangko Sentral ng Pilipinas in 2009?
Which of the following features were retained in the New Generation Currency series from the New Design Series?
Which of the following features were retained in the New Generation Currency series from the New Design Series?
What specific addition was made to the 500-piso note in the New Generation Currency series?
What specific addition was made to the 500-piso note in the New Generation Currency series?
When did the Bangko Sentral ng Pilipinas begin releasing the initial batch of new banknotes?
When did the Bangko Sentral ng Pilipinas begin releasing the initial batch of new banknotes?
What notable feature characterizes the enhanced NGC banknotes launched in 2020?
What notable feature characterizes the enhanced NGC banknotes launched in 2020?
What is one of the main themes depicted on the new banknote designs?
What is one of the main themes depicted on the new banknote designs?
What type of technology was included in the enhanced NGC banknotes to address security concerns?
What type of technology was included in the enhanced NGC banknotes to address security concerns?
Which statement about the New Generation Currency series is true?
Which statement about the New Generation Currency series is true?
What is the primary function of the Optically Variable Device (OVD) patch found on the 500- and 1000-piso notes?
What is the primary function of the Optically Variable Device (OVD) patch found on the 500- and 1000-piso notes?
What is included in the definition of money supply?
What is included in the definition of money supply?
Which of the following represents Money Supply M0 in the Philippines for July 2023?
Which of the following represents Money Supply M0 in the Philippines for July 2023?
What color change does the Optically Variable Ink (OVI) on the 1000-piso note exhibit?
What color change does the Optically Variable Ink (OVI) on the 1000-piso note exhibit?
What type of features are classified as Level II security features?
What type of features are classified as Level II security features?
In the context of money supply, what does the term 'monetary base' refer to?
In the context of money supply, what does the term 'monetary base' refer to?
How does the money supply relate to the public?
How does the money supply relate to the public?
What is a common misconception about the definition of money supply?
What is a common misconception about the definition of money supply?
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Study Notes
Money and Monetary Systems
- Grains and food historically served as currency.
- Money evolved from uncoined metals, which lacked standardized weight and value.
- Coined metals emerged, resolving many issues associated with uncoined forms.
- A "fully bodied coin" has a face value equal to its metal value, while "token money" has a higher face value than intrinsic value.
Functions of Money
- Serves as a medium of exchange for goods and services.
- Acts as a store of value for wealth preservation.
- Functions as a unit of account for measuring value (divisible, fungible, countable).
- Establishes a standard for deferred payment, crucial for credit transactions.
Characteristics of Useful Money
- Durability: Resists wear and tear.
- Portability: Easily transported.
- Divisibility: Can be broken down into smaller units.
- Uniformity: Consistent features for easy recognition.
- Limited Supply: Restriction on availability to maintain value.
Historical Currencies
- Persian Daric: Gold coin used in Persia from 522 BC to 330 BC.
- Roman Currencies: Aureus (gold), denarius (silver), and sestertius (bronze) circulated from 250 BC to AD 250.
Evolution of Philippine Currency
- Post-independence, currencies transitioned from Spanish to English notes following WWII.
- The Central Bank of the Philippines was established in 1949; introduced English series banknotes and coins.
- Japanese occupation (WWII) resulted in circulating "Mickey Mouse" money, unbacked by reserves.
Banknote Series in the Philippines
- New Design Series (1985-2017): Introduced to enhance security and durability.
- New Generation Currency Series (2010-present): Focused on improved security features for elderly and visually impaired individuals.
- Initial release of new banknotes began on December 16, 2010.
Security Features of Banknotes
- Level I: Basic features for public recognition (e.g., embossed prints, security threads).
- Level II: Advanced features for cash handlers (e.g., microprinting, ultraviolet security fibers).
Money Supply
- Represents total cash and cash equivalents available to the public.
- Money supply in the Philippines indicated a decline from 1927227.99 PHP million in June 2023 to 1891167.79 PHP million in July 2023.
- The monetary base includes circulating currency and commercial bank reserves, highlighting liquidity in an economy.
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