MONETARY POLICY &

CENTRAL BANKING FIN

7
COURSE SYLLABUS
AY 2020-2021

Course Code: Prof 4 (Fin 7)

Title: Monetary Policy & Central Banking
Units: Three (3) units
Pre-requisite: Finance 4
Course Description:

This course is designed with two parts, the monetary system and central banking. It is designed to develop an
understanding on how the economy and the financial system are being affected by the different monetary policies. Under this,
an overview on the importance of money, money creation, barter, payments, monetary standards, Philippine peso, demand and
supply of money are discussed. Central banking covers its development, importance, functions, operations and also central
banking outside the Philippines. Important parts of the New Central Bank act are also mentioned in the course.

Methodology/ Activities:
1. Lecture – discussion
2. Quizzes
3. Assignments
4. Periodical Examinations
5. Group Dynamics
6. Case Analyses

II. Requirements
1. Regular and punctual attendance
2. Quizzes, assignments, periodical examinations
3. Reports
4. Reaction papers
5. Self-assessment exercise
6. Notebook
7. Research
III. Course Coverage
 No. of Hours Activity & Learning Approach
Learning Contents/Topics Evaluation
FIRST GRADING
Part 1 – Money in the Nation’s
Economy Lecture
1. Money and its Evolution 7 Recitation Quiz
Class Discussion Reading
Origin of Money Group Output Assignment
Functions of Money Power point presentation
Features of Good Money Assignment
Kinds of Money
Managed Currency
Different types of Money used in the
Philippines
2. Monetary Standard Lecture
Definition of Monetary Standard Class Discussion Reading
Classification of Monetary 4 Power point presentation Recitation Quiz
Standards Assignment Group Output Assignment
Commodity standards
Non-commodity standards
3. Monetary System Lecture
Pre-Spanish Period Class Discussion Reading
Spanish Period 4 Power point presentation Recitation Quiz
Japanese Period Assignment Group Output Assignment
American Period
Phil. Managed Currency System
Inflationary period of martial law
Current Issues
 Telefax No.: (074) 442-3071 Website: www.ubaguio.edu E-mail
Address: ub@ubaguio.edu
MIDTERM GRADING PERIOD
4. Philippine Monetary Policy
Monetary Policy & its Objectives
Advantages 6 Lecture Recitati
Limitations Class on Quiz
Monetary & Banking Policy Discussion Group
Fiscal Policy Reading Output
Fiscal Functions Power Assignment
Coordinating Fiscal & Monetary point
policy presentati
on
Assignme
nt
Part 11 – Banking Institutions
5. Central Banking:
Development & Growth 6 Lecture Recitati
Nature of Central Banking Class on Quiz
Central banking defined Discussion Group
Origin of Central Bank Reading Output
Operations of New Central banks Power Assignment
The Bangko Central and the point
economy presentati
The Bangko Central ng Pilipinas on
Brief history of BSP Assignme
Objective & Responsibilities of BSP
nt
6. Central Banking Authority
The Monetary Board
Board Membership Evaluation 5 Lecture Recitati
Powers of the Monetary Board Class on Quiz
Powers & Duties of the Governor Discussion Group
Domestic Monetary Policy
International Monetary Stability Reading Output
Present Officers of the BSP Power Assignment
point
presentati
on
Assignme
nt
 FINAL GRADING PERIOD
7. Functions & Operations of the
Bangko Sentral
Characteristics of Central Banks 3 / / / / / / / / / / / / / / Lecture Recitati
Functions of Central Banks Class on Quiz
Monetary tools Discussion Group
Activities of the Central Banks Reading Output
The Banko Sentral and Industrial Power Assignment
Development point
The CBP Coordinates with presentati
International Institutions on
Credit Operations Assignme
The Security Plant Complex of BSP nt
Gold & Silver Plant Reserve
Management
8. Regulations & Supervisions of
Financial Institutions
5 / / / / / / / / / / / / / / Lecture Recitati
Bangko Sentral Non-bank Financial
Class on Quiz
Servises the Banking Institutions
Discussion Group
Bangko Sentral Regulates Non- bank
Reading Output
Financial Institutions
Power Assignment
Supervision & Regulation
point
Distinguished
Types of Examinations presentati
Purpose of Supervision and on
Regulations Assignme
Effectiveness of Supervision and nt
Regulation
Benefits of Bank Supervision
9. The Role of IMF in Central Lecture
Banking Class
Organizational Structure 5 / / / / / / / / / / / / / / Discussion Recitati
IMF Objective Reading
Quotas of IMF Members Power point on Quiz
 Normal Facilities of IMF presentatio Group
IMF Special Facilities n Output
IMF Conditionality
Assignme Assignment
nt
10.Central Banking for Socio-
Economic development
The Right to Development 5 / / / / / / / / / / / / / / Lecture Recitati
Two different Worlds Class on Quiz
The Promotion of Human Dignity Discussion Group
Deprivation of the rural poor Reading Output
The miseries of the urban poor Power Assignment
The Social Responsibility of
Central Bank point
presentati
on
Assignme
nt

Grading System:

For Professional Subjects: the cut-off score is 70%. The highest possible grade is ninety-nine (99); the lowest passing grade is seventy-five
(75); and the lowest failing grade is sixty-five (65).
First grading Class standing = 70 % ;
Exam = 30 % Midterms Class standing = 60
% ; Exam = 40 %
( Tentative Midterm Grade x 2 + First Grading ) / 3 =
Midterm Grade Finals Class standing = 60 % ; Exam = 40 %
( Tentative Final Grade x 2 + Midterm Grade ) / 3 = Final grade
Textbook and References:

References:
Books
Burton & Lombra. (2004) The Financial System & the Economy: Principles of Money & Banking . 3rd Ed. USA:
Thomson Southwest. Cecchetti, S. (2006) Money, Banking & Financial Markets. NY: McGraw-Hill Irwin.
Miller, R. et.al. (2007) Money, Banking, Financial Markets. 3rd Ed. USA:
Thomson South- Western.
Miranda, Gregorio S. (2004) Money, Credit & Banking.. Manila: L&G Enterprises.
Valdez, . et.al. (2003) An Introduction to Global Financial Markets. 4th Ed. New York: Palgrave MacMillan
 Internet
www.bsp.gov.
ph
www.imf.org