Republic of the Philippines

Commission on Higher Education

Region V – Bicol
CALABANGA COMMUNITY COLLEGE
Brgy. Belen, Calabanga, Camarines Sur

Direction: Encircle the letter of the correct answer.

I.
1. In what period, the industrialized nations set up central banking
systems, with one of the last being the Federal Reserve in 1913.
a. 1870-1920 c. 1865-1935
b. 1871-1921 d. 1872-1923
2. It refers to the policy measures undertaken by the government or the
central bank to influence the availability, cost and use of money and
credit with the help of monetary techniques to achieve specific objectives.
a. Fiscal Policy c. Inflation
b. Monetary Policy d. None of the above
3. A tool that can influence interest rates by changing the discount rate.
The discount rate (base rate) is an interest rate charged by a central
bank to banks for short-term loans.
a. Open market operations c. Interest rate adjustment
b. Exchange Rate d. Change reserve requirements
4. A tool that Central banks usually set up the minimum amount of
reserves that must be held by a commercial bank. By changing the
required amount, the central bank can influence the money supply in
the economy.
a. Open market operations c. Interest rate adjustment
b. Exchange Rate d. Change reserve requirements
5. The _____________is undertaken with an aim to increase the aggregate
demand by cutting the interest rates and increasing the supply of money
in the economy.
a. Expansionary Monetary Policy
b. Expeditionary Monetary Policy
c. Contractionary Monetary Policy
d. Contactionary Monetary Policy
6. Is applied when the inflation is a problem and economy needs to be slow
down by curtailing the supply of money.
a. Expansionary Monetary Policy
b. Expeditionary Monetary Policy
c. Contractionary Monetary Policy
d. Contactionary Monetary Policy
 7. Also known as the General Tools of monetary policy.
a. Quantitative Instruments
b. Qualitative Instruments
c. Instruments Tool
d. Qualification Tool
8. Also known as the Selective Tools of monetary policy.
a. Quantitative Instruments
b. Qualitative Instruments
c. Instruments Tool
d. Qualification Tool

9. The success of these tools is _____________by the availability of alternative

sources of credit in economy, working of the Non-Banking Financial
Institutions (NBFIs), profit motive of commercial banks and undemocratic
nature off these tools.

a. Unlimited c. Non-Limited
b. Limited d. None of the above

10. The target variable should be closely related to the higher level goal
variables and this relation should be well understood and reliably estimable.

a. Relatedness to Goal Variables c. Measurability

b. Attainability d. Personality

11. The target variable should be easily measurable with little or no time lag.

a. Relatedness to Goal Variables c. Measurability

b. Attainability d. Personality

12. The targets which are unattainable are not practical.

a. Relatedness to Goal Variables c. Measurability

b. Attainability d. Personality

13. Monetary Policy should be well understood and _____________.

a. Organized c. Systematic
b. Utilize d. Analyze

14. The Central Bank should raise the policy interest rate, over time, by more
than ___________in response to a persistent increase in inflation and lower the
policy rate more than one-for-one in response to a persistent decrease in
inflation.
a. one for one c. three for three
b. two for two d. buy one take one
15. A Central bank may reduce the amount of money by selling government
bonds under a _____________agreement.
a. “sale and repurchase”
b. “sale and purchase”
c. “resale and produce”
d. “retail and repurchase”

16. With the creation of the _____________in 1694, which acquired the
responsibility to print notes and back them with gold, the idea of monetary
policy as independent of executive action was established.
a. Bank of the Philippines c. Bank of England
b. Bank of China d. Metrobank

17. The interest is known as __________________.

a. ORR c. IOR
b. OPR d. IRRO

18. _________________are meant to regulate the overall level of credit in the

economy through commercial banks.
a. Policies Instruments c. Commercial Instruments
b. Policy Instruments d. Selective Instruments

19. Involves the government changing tax rates and levels of government
spending to influence aggregate demand in the economy.
a. Fiscal Policy c. Inflation
b. Monetary Policy d. Savings

20. Interest rates can be set every _________.

a. day c. month
b. week d. year

II. Enumeration

1-3. Objectives of Monetary Policy

4-5. Types of Monetary Policy

6-8. Tools of Monetary Policy

9-10. Instruments of Monetary Policy

GOODLUCK!!!
 Key to Correction:

Test I.

1. A
2. B
3. C
4. D
5. A
6. C
7. A
8. B
9. B
10. A
11. C
12. B
13. C
14. A
15. A
16. C
17. C
18. B
19. A
20. C

Test II:

1. Inflation
2. Unemployment
3. Currency exchange rates
4. Expansionary
5. Contractionary
6. Interest rate adjustment
7. Change reserve requirements
8. Open market operations
9. Quantitative Instruments
10. Qualitative Instruments
 Republic of the Philippines
Commission on Higher Education
Region V – Bicol
CALABANGA COMMUNITY COLLEGE
Brgy. Belen, Calabanga, Camarines Sur

ATTENDANCE SHEET
Date: May 19, 2020

NAMES REMARKS
1 CHAVEZ, JHON JIMMY A.
2 DIWATA, RYAN JEROME
3 ESTAY, REY FRANCIS
4 LAYSON, MARK DL.
5 SOLIS, RAFFY PIOLO
6 TUY, JOHN FRANCIS

1 ADAN, MARIE KRIS M.

2 AGAPAN, EVANGELINE
3 ALTO, KATHLEEN MARY C.
4 BOLAÑOS MARIANNE
5 CAPAL, HILDA
6 CATANGUI, GERALDINE
7 CELLONA, JOAN B.
8 CONANAN,VEVERLY O.
9 CORPORAL, ROSE ANN
10 DELOS REYES, MARICRIS
11 DIMAANO, BERNADETTE
12 ELOPRE, IRENE GAIL G.
13 ENCINARES, MANILYN D.
14 ESCALANTE, HAZEL
15 GAGASA, CLARICE
16 IMPORTANTE, MARIA CRISTINA S.
17 LORETO, MA. ALONDRA S.
18 MACAYAN, JESSA B.
19 MARTINEZ, ALILI C.
20 OLLETA, NESLENE
21 PAJARES, JOSEPHINE
22 PERIARCE, IVE S.
23 PRON, ANGELICA S.
24 RAMOS, MICHELLE
25 SALES, MA.HONELYN A.
26 VARGAS, MA. LOURDES
27 VILLANUEVA, RICHELLA MAY

TOTAL: 33
 Republic of the Philippines
Commission on Higher Education
Region V – Bicol
CALABANGA COMMUNITY COLLEGE
Brgy. Belen, Calabanga, Camarines Sur

QUIZZES RESULT
30 Items