Bangko sentral ng Pilipinas 2

Question 1

Objective of a Central Bank

Answer 1

• to maintain price stability to make a balance and sustainable economic growth
• to promote and preserve the monetary stability and the convertibility of the Philippines currency.

Question 2

Create and implement monetary policy to maintain price stability.
* Open Market Operations
* Interest Rate Corridor
* Reserve Requirement
* Moral Suasion

Answer 2

Liquidity Management

Question 3

Issue the national currency including all notes and coins.

Answer 3

Currency Issue

Question 4

Give discounts, loans and advances to banking institutions for liquidity purposes.

Answer 4

Lender of last resort

Question 5

Monitor bank and non-bank institutions performing banking functions.

Answer 5

Financial Supervision

Question 6

This is undertaken once a year. Such examination covers the verification of assets and liabilities and capital accounts to determine the stability and solvency of the financial institution. It also reviews the incomes and expenses of the said institution to determine the probable profit that stockholders would expect from their investments.

Answer 6

General or regular examination

Question 7

This is conducted as often as necessary. It includes a review of a special account or group of accounts such as loans or deposits. This examination is usually of short duration. It follows up findings in a previous examination to determine whether the institution has implemented the recommendations of the Bangko Sentral or whether the errors have been corrected as suggested by the BS examiners.

Answer 7

Special or interim examination

Question 8

This examination is conducted when a complaint is received by the BS from a borrower, stockholder, depositor, or an employee, or even from anybody regarding the operation of a financial institution

Answer 8

Special investigation

Question 9

Manages international reserves.

Answer 9

Management of foreign currency and reserves

Question 10

Maintain a market-oriented foreign exchange policy

Answer 10

Determination of exchange rate policy

Question 11

a term for all departments/offices directly reporting to the Monetary Board or to the Governor

Answer 11

Executive Management Services

Question 12

mainly responsible for the operations/activities related to monetary policy formulation and implementation

Answer 12

Monetary Stability Sector

Question 13

mainly responsible for the regulation of banks and other BSP-supervised financial institutions

Answer 13

Supervision and Examination Sector

Question 14

includes not only the issuance of rules and regulations but also the overseeing of operations of a financial institution. This is to make sure that such rules and regulations are complied with. It also includes examination and investigation to determine whether the financial institution is conducting its business on a sound financial basis.

Answer 14

Supervision

Question 15

refers to the issuance of rules and conduct or the establishment of modes or standards of operation for uniform application to all financial institutions or functions covered.

Answer 15

Regulation

Question 16

mainly responsible for the management of human, financial, and physical resources of the Bank

Answer 16

Resource Management Sector

Question 17

responsible for the production of Philippine currency, security documents, and commemorative medals and medallions

Answer 17

Security Plant Complex