Lesson 4 Flashcards
(54 cards)
Refers to the techniques used by the BSP to determine the total money supply of the Philippines that affect the contry’s financial conditions.
General Controls
Refers to the purchase and sale of government securities by the BSP.
Open Market Operations
The BSP can affect the total borrowings of the member banks by increasing or decreasing the rate of interest charged (discount rate)
Discount rate policy
Reserve maintenance of all uniformly applied to all banks/quasi-banks of the same category.
Reserve requirements
Maybe in the form of bank’s deposits liabilities or in the form of the bank’s assets
Reserve requirements
Refers to the setting a minimum margin requirement on the purchase of stock.
Stock Market Credit/Open Market Operations
This describes the variety of informal methods used by the BSP to persuade its member banks to behave in a particular manner.
(publicized speeches of Monetary Board, letters, and programs of credit restraints , conference and guidelines
Moral suasion
Defines the monetary system as follows –
*. Gold Coins contain 12.9 grains of gold;
* Silver Coins contain 416 grains of silver and
0.9 fineness.
Philippine Coinage Act of 1903
Gold Coins contain
12.9 grains of gold
Silver Coins contain
416 grains of silver and
0.9 fineness.
Philippine money was redeemable in drafts or in checks payable in full gold standard currency.
US Coinage Act of 1903
To maintain value of peso with gold, a currency reserve fund as a ____ was set up.
“Gold Standard Fund”
The Philippine currency is not redeemable in gold but instead in dollars.
Gold Reserve Act of 1934
Dollars devaluated by 41 percent, and the US government was given title to all gold coins, bullion and certificates held by ______
Federal Reserve Bank.
Philippine currency was redeemable in dollar instead of gold. Currency issued was backed up by silver coins and dollars.
Dollar Exchange Standard
Paper bills issued by the Japanese , in fear of non-cooperation from authority. Money supply increases from 1946 to 1949
Mickey Mouse
was enacted that place the bank in a better position to meet the credit needs of both existing and new entrants business enterprises.
CB Act (Rep. Act # 265)
defines the monetary unit as “peso” , divided into one hundred equal parts called “centavo”.
Chapter 2 of Central Bank Act
defines the monetary unit as “peso” , divided into one hundred equal parts called
centavo
has the sole power and authority to issue Philippine currency.
The Bangko Sentral ng Pilipinas
issued by the BSP are their liabilities and may be issued only against, and in amounts not exceeding the BSP’s assets.
Notes & coins
shall be the first and paramount lien of the BSP.
Notes and coins
Includes the face value of each coin and paper bill.
Denomination
The sizes of coins & paper bills.
Dimensions
