CHAPTER 6 SIR EX

• TRUE


  were not even in existence until the 1900s
• central banking


  is a financial institution given privileged control over the production anddistribution of money and credit for a nation or a group of nations. In modern economies,the central bank is usually responsible for the formulation of monetary policy and theregulation
• FALSE


  Central banks are inherently market-based or even anti competitive institutions
• TRUE


  Although some are nationalized, many central banks are not government agencies, and soare often touted as being politically independent. However, even if a central bank is notlegally owned by the government, its privileges are established and protected by law.
• TRUE


  Central banks control and manipulate the national money supply: issuing currency andsetting interest rates on loans and bonds. T
• TRUE


  Typically, central banks raise interest rates to slowgrowth and avoid inflation; they lower them to spur growth, industrial activity, andconsumer spending. In this way, they manage monetary policy to guide the country'seconomy and achieve economic goals, such as full employment.
• TRUE


  o “The essence of central banking is discretionary control of the monetary system.”
• regulating member banks


  o Central banks regulate member banks through capital requirements, reserve requirements(which dictate how much banks can lend to customers, and how much cash they must keepon hand), and deposit guarantees, among other tools. They also provide loans and servicesfor a nation’s banks and its government and manage foreign exchange reserves.
• acting as emergency lender


  to distressedcommercial banks and other institutions, and sometimes even a government. By purchasinggovernment debt obligations, for example, the central bank provides a politically attractivealternative to taxation when a government needs to increase revenue.
• false


  The first central banks that provided inspiration for the modern central banking systemswere mostly established in india
• Dutch republic in 1609


  The Bank of Amsterdam (Amsterdam Wisselbank),established in the
• . The Bank of Amsterdam (Amsterdam Wisselbank),


  was a forerunner to modern central banks.
• The Bank of Amsterdam (Amsterdam Wisselbank),


  helped lay the foundations for the birth and development of thecentral banking system that now plays a vital role in the world's economy. Along with anumber of subsidiary local banks, it performed many functions of a central banking system.The model of the Wisselbank as a state bank was adapted throughout Europe.
• Johan Palmstruch


  what is regarded as the world’s oldest central bank was established by
• Sveriges Riksbank


  The DutchLatvian banker built the ------ as Sweden’s central bank.
• Charles Montaguproposed


  In the mid-1960s, when the money supply in England was short and low, ------ the nation’s central banking system and established the Bank of England.
• William III’s 


  Thecentral bank was primarily established to fund ------ government in the Nine Years’War, and was able to raise the funds needed to rebuild the Navy by giving the bank exclusivepossession of the government's balances, and was made to be the only limited-liabilitycorporation allowed to issue banknotes.
• true


  By the early part of the 20th century, central banks have been established in Japan,Australia, Colombia, Mexico, Chile, Canada, India, New Zealand, and eventually, thePhilippines.
• true


  The notion of central banking in the Philippines was first conceptualized by a group ofFilipinos in 1933.
• Hare-Hawes Cutting Bill


  They came up with the idea of establishing a central bank upon thepassage of the ------ or the bill detailing the Philippine independence.
• Franklin D. rOOSEVELT


  When theTydingsMcDuffie Act was passed in 1939, it also established the country’s first central bank.However, this move was opposed and rejected by then US President
• TRUE


  Come 1946, after the Philippines was released from Japanese colonization, then president Manuel Roxas instructed then Finance Secretary Miguel Cuaderno Sr. to draft a charter for acentral bank.
• TRUE


  A year later and based upon the findings of a committee headed by Cuaderno,the Joint Philippine-American Finance Commission, the establishment of a central bank wasmade into a priority. The findings stated that a shift from the dollar exchange standard to amanaged currency system was necessary to resolve the financial, monetary, and fiscalproblems of the country.
• TRUE


  Roxas then created the Central Bank Council, a committee whothen produced a draft of how the central bank in the Philippines would function. B
• FALSE


  . By June of1949, Roxas’s successor Elpidio Quirino signed Republic Act No. 265, or the Central Bank Actof 1948
• November of 1972,


  changes to the charter were made in accordance with Presidential Decree No. 72, whichdetailed the recommendations of the Joint IMFCB Banking Survey Commission.
• 1993


  President Fidel V. Ramos signedthe Republic Act No. 7653, or the New Central
• RA NO. 7653


  This act gave independence andfiscal autonomy as a money authority to the central bank and renamed it into what it isknown today, the Bangko Sentral ng Pilipinas. In this Act, the primary objective of thecountry’s central bank – which was only implied in the old central bank provision – wasexplicitly stated: price stability. The New Central Bank Act took effect on July 3, 1993.
• 1900


  Act No. 52 was passed by the First Philippine Commission placing all banks under the Bureauof Treasury. The Insular Treasurer was authorized to supervise and examine banks andbanking activities.
• February 1929

  The Bureau of Banking under the Department of Finance took over the task of bankingsupervision.
• 1939


  A bill establishing a central bank was drafted by Secretary of Finance Manuel Roxas andapproved by the Philippine Legislature. However, the bill was returned by the USgovernment, without action, to the Commonwealth Government.
• Philippine-American Finance Commission


  was created to study the Philippinecurrency and banking system. The Commission recommended the reform of the monetarysystem, the formation of a central bank and the regulation of money and credit. The charterof the Central Bank of Guatemala was chosen as the model of the proposed central bankcharter.
• August 1947


  A Central Bank Council was formed to review the Commission’s report and prepare thenecessary legislation for implementation.
• February 1948


  President Manuel Roxas submitted to Congress a bill “Establishing the Central Bank of thePhilippines, defining its powers in the administration of the monetary and banking system,amending pertinent provisions of the Administrative Code with respect to the currency andthe Bureau of Banking, and for other purposes.
• 15 June 1948


  The bill was signed into law as Republic Act No. 265 (The Central Bank Act) by PresidentElpidio Quirino
• 3 January 1949


  The Central Bank of the Philippines (CBP) was inaugurated and formally opened with Hon.Miguel Cuaderno, Sr. as the first governor. The broad policy objectives contained in RA No.265 guided the CBP in the implementation of its duties and responsibilities, particularly inrelation to the promotion of economic development in addition to the maintenance ofinternal and external monetary stability.
• November 1972


  RA No. 265 was amended by Presidential Decree No. 72 to make the CBP more responsive tochanging economic conditions. PD No. 72 emphasized the maintenance of domestic andinternational monetary stability as the primary objective of the CBP. Moreover, the CBP’sauthority was expanded to include not only the supervision of the banking system but alsothe regulation of the entire financial system.
• January 1981


  Further amendments were made with the issuance of PD No. 1771 to improve andstrengthen the financial system, among which was the increase in the capitalization of theCBP from P10 million to P10 billion.
• 1986


  Executive Order No. 16 amended the Monetary Board membership to promote greaterharmony and coordination of government monetary and fiscal policies.
• 14 February 2019


  Republic Act No. 11211 was passed amending RA No. 7653. The charter amendments bolsterthe capability of the BSP to safeguard price stability and financial system stability.