TAYABAS WESTERN ACADEMY

Founded 1928
Candelaria, Quezon

Self-Learning Module

Instructor Genette G. Concepcion No. of Student/s 35

Department College of Business and Accountancy Course/Year BSBA FM
Module No. 1 Units 3
Duration 3 weeks Days(Time) TTHS (7:30-8:30)
Date of Subject Code FM7
Submission March 01, 2022
Description CAPITAL MARKET
Topic The Financial System

Learning Targets

At the end of this module, the students must be able to:

a. define what a financial system is and illustrate its role in the economy;
b. identify the different participants in the financial system and their roles;
c. elaborate on the role of BSP in the economic development of the Philippines;
d. explain monetary policy and its role in the economic development f the country;
e. discuss the relationship between monetary policy and financial system;

Engage

1. What is BSP? What is its role in the well-being of the Philippines?

2. Discuss the meaning of financial system. What is its importance to the nation?

3. Discuss the role each of the participants in the financial system play.

Explore and Explain

1.0 The Realm of Morality: Ethics and Mores
Ethics is the branch of philosophy that deals with the systematic questioning and critical
examination of the underlying principles of morality. Ethics came from the root word
‘ethos’ which refers to the character of a culture. Ethos includes the attitude of approval
or
disapproval in a particular culture at a given time and place. The subject matter being
studied in ethics is morality. Morality came from the root word ‘mores’, which refers to
the customs, including the customary behavior, of a particular group of people. This con-
stitutes the core of the attitudes and beliefs of a particular group of people. Therefore,
mores (in Latin) and ethos (in Greek), both refer to customary behavior.
Ethics as the study of moral goodness or badness or the rightness and wrongness of an
act
and it has two general approaches — normative and meta-ethics. Normative ethics an-
swers the question, ‘What is good?’ It pertains to norms or standards of goodness and
the
rightness or wrongness of an act. A comprehensive normative ethical system tries to
give a
moral framework where its standards of morality are based. An example is Christian
ethics
with its well defined and clear parameters and definition of what is good and bad based
on
its comprehensive framework. Meta-ethics, on the other hand, examines the presupposi-
tions, meanings, and justifications of ethical concepts and principles. For example,
instead
of assuming that there is an objective moral truth, meta-ethics will question the basis fo

1
1.0 The Realm of Morality: Ethics and Mores
Ethics is the branch of philosophy that deals with the systematic questioning and critical
examination of the underlying principles of morality. Ethics came from the root word
‘ethos’ which refers to the character of a culture. Ethos includes the attitude of approval
or
disapproval in a particular culture at a given time and place. The subject matter being
studied in ethics is morality. Morality came from the root word ‘mores’, which refers to
the customs, including the customary behavior, of a particular group of people. This con-
stitutes the core of the attitudes and beliefs of a particular group of people. Therefore,
mores (in Latin) and ethos (in Greek), both refer to customary behavior.
Ethics as the study of moral goodness or badness or the rightness and wrongness of an
act
and it has two general approaches — normative and meta-ethics. Normative ethics an-
swers the question, ‘What is good?’ It pertains to norms or standards of goodness and
the
rightness or wrongness of an act. A comprehensive normative ethical system tries to
give a
moral framework where its standards of morality are based. An example is Christian
ethics
with its well defined and clear parameters and definition of what is good and bad based
on
its comprehensive framework. Meta-ethics, on the other hand, examines the presupposi-
tions, meanings, and justifications of ethical concepts and principles. For example,
instead
of assuming that there is an objective moral truth, meta-ethics will question the basis fo

See attached pages 2-21

Extend/Elaborate

Define the following:

a. Monetary policy
b. Foreign participants
c. Financial institutions
d. Discounting
e. Inflation targeting
f. Multinational Financial System
g. Clearing house
h. Households
i. Non-financial institutions
j. BSP

Evaluate

1. What is monetary policy? What is its importance in the economy?

2. Illustrate the BSP and the Banking Institutions and the Non-Bank Financial

Institutions.
3. Discuss the relationship between monetary policy and financial system.

4. What are the different tools of monetary policy? Discuss how the tools of monetary
policy influence money supply and interest rates.

5. How is the BSP relative to the financial system? Discuss.

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Note: Answer all the questions to be written in a yellow paper only using this format.

Name:
Module #:
Subject:
Date submitted: