PRELIMS
Bank
Report: BSP Laws- The original law,
1st amendment and the latest
amendment
Reporter/prepared: Nesha Ann Marie
Bañares
1. What does Republic act no. 265 states?
An act establishing the central bank
of the philippines,
Defining its powers in the
administration of the monetary
And banking system, amending the
pertinent provisions of
The administrative code with respect
to the currency and
The bureau of banking, and for other
purposes.
2. When did the republic act. No 265 published?
a. June 15,1948
b. November 29,1972
c. September 21, 1936
3. Republic act number 7653 is also known as
a. House of Representatives of the
Philippines in Congress
b. Powers of the Central Bank
c. The new central bank act
4. According to sec. 11 in the 1st amendment,
The Senior Deputy-Governor of the Central
Bank and the Deputy-Governor for Economic
Research shall attend the meetings of the
Monetary Board with the right to be heard but
not to vote.
5. In what year did the republic act no. 11211
approved?
a. 2021
b. 2017
c. 2019
6. None of the following may be a member of the
Monetary Board or a deputy-governor of the
Central Bank except:
a. Persons holding any public
position or office, either by
election or by appointment
b. Directors, officers, employees,
consultants, or stockholders of
other banking financial institutions
subject to supervision, regulation
or examination by the Central
c. non-stock savings and loan
associations and provident
funds organized exclusively for
employees of the Central Bank
7. The ________shall appointed for a term of six
years by the President of the Philippines with the
consent of the Commission on Appointments.
a. President
b. Governor
c. Mayor
d. Kapitan
8. The monetary board is composed of 8
member.
False ( 7 members)
9. The Central Bank of the Philippines shall be
exempt, from all national, provincial, Municipal
and city taxes and assessments now in force or
hereafter established.
True
10. The Bangko Sentral shall provide policy
directions in the areas of money,
banking, and credit.
True
The concept, theories, and measures to
contain inflation QUESTIONS
REPORTERS: BELARDE AND BARAJAS
1. What is inflation?
A. Is the increase in the prices of goods and
services over time.
B. Is a fall in the overall level of prices in an
economy and an increase in the purchasing
power of the currency.
C. Is the quantity of consumers who are willing
and able to buy products at various prices during
a given period of time.
2. It became popular during and after the
Second World War.
A. Cost-push Inflation
B. Demand-pull Inflation
C. Mixed Demand Inflation B. Purchasing Power

3. Many economists have come to believe that C. Power puff girls

the actual process of inflation is neither due to
demand-pull alone, nor due to cost-push alone, 8. It also one of the effect of inflation that rising
but due to a combination of both the elements of price levels result in money losing its value.
demand-pull and cost-push—called ________?
A. High Currency Valuation
A. Demand-pull inflation
B. Up and down Currency Valuation
B. Mixed Inflation
C. Lowers Currency Valuation
C. Mixed Demand Inflation
9. Who is the economist that developed Philips
4. The essence of this theory is that inflation is Curve?
caused by an excess of demand (spending)
relative to the available supply of goods and A. A.Z. Philips
services at existing prices.
B. A.P. Philips
A. Demand-pull inflation
C. A.W. Philips
B. Cost-push inflation
10. It means there’s excess money supply.
C. Mixed inflation
A. Consistent Inflation
5. The theory of demand-pull inflation relates to
what may be called the _______? B. Persistent Inflation

A. Traditional theory of inflation C. Patience Inflation

B. Mixed Demand Inflation 11. & 12. What are the 2 broad categories of
inflation?
C. Demand-pull Inflation A. Price Inflation & Suppressed Inflation

6. It is one of the effects of Inflation that If you’re
a debtor, your money to pay off your loan or
mortgage loses value during inflation.
A. Increases Asset Prices
B. Stimulates Short-Term Growth
B. Headline Inflation & Deflation
C. Money Inflation & Price Inflation
13. & 14. The Philippines, like many countries
around the world, is facing skyrocketing ____
inflation due to supply issues and _______
costs.

A. Food and High Fuel

C. Downsizes Effective Debt
B. Potato and Oils
7. It refers to the number of goods and services C. Price Index and High Living
you can buy with a currency unit.
15. _________ =
A. Power Ranger
A. Price Index
B. Inflation Rate b. Quantity Theory of Money

C. Wholesale Price c. Quality Theory of Money

16. _________ =
2. With the spread of civilization and trade
A. Inflation Rate
relations by land and sea, this took the place of
B. Wholesale Price
commodity money.
C. Price Index a. Metallic Money
17. Also known as galloping inflation or runaway b. Paper Money
inflation c. Near Money
A. Stagflation

B. Suppressed Inflation 3. The stage in the evolution of money in the

C. Hyperinflation modern world is the use of the cheque as

money.
18. This is the opposite of inflation
a. Paper Money
A. Disinflation
b. Commodity Money
B. Deflation c. Credit Money
C. Headline Inflation

19. This is a process of keeping a check on price 4. This theory of money states that only the
rises by deliberate attempts. banking system as a whole can collectively
A. Disinflation create money.
B. Deflation a. Fractional Reserve Theory

C. Headline Inflation b. Debt Intermediation Theory

c. Credit Creation Theory
20. This measures the average changes in
prices received by domestic producers for their
output. 5. This theory holds that banks are merely
A. Producer Price Index (PPI) financial intermediaries.

B. Wholesale Price Index (WPI) a. Fractional Reserve Theory

b. Debt Intermediation Theory
C. Consumer Price Index (CPI)
c. Credit Creation Theory

THEORY OF MONEY 6. A theory which proposes that individual banks

Reporters: Castuera and Belardo can create money, and banks do not solely lend

Questions: out deposits that have been provided to the

1. It states that money supply and price level in bank.

an economy are in direct proportion to one a. Fractional Reserve Theory

another. b. Debt Intermediation Theory

a. Theory of Quantity Money c. Credit Creation Theory

 b. Financial system
7. The word ‘money’ is derived from the Latin c. Financial institutions
word ____. d. Financial instruments
a. Monette 2. ___________ accumulate or gather
b. Moneta savings.
a. Monetary system
c. Monita
b. Financial system
c. Financial institutions
8 This approach in theory of money is given by d. Financial markets

Keynes. 3. _________ is responsible for creating

a. Quantity Velocity Approach and transferring money.
a. Monetary system
b. Cash Balances Approach b. Financial system
c. Income-Expenditure Approach c. Financial institution
d. Financial markets

9. The stage of money where various types of
commodities have been used as money from the
beginning of human civilization.
a. Metallic Money
b. Commodity Money
c. Near Money
10. This approach is under the modern theory of
money.
a. Income-Expenditure Approach
b. Quantity Velocity Approach
c. Cash Balances Approach
4. An institution that manages a state’s
currency, money supply and interest
rate.
a. Financial Institutions/Intermediaries
b. Non-financial Institution
c. Central Bank
d. Government
5. Refers to the participants from the rest
of the world such as households,
government, financial and non-financial
firms, and central bank. They exchange
goods and services across national
boundaries.
a. Government
b. Financial institution
c. Central bank
d. Foreign participants

MIDTERM 6. Are primarily for the purpose of saving

but also includes the mortgage banks,
LESSON: THE PHILIPPLINE private development banks and stocks
savings and loan association.
FINANCIAL SYSTEM a. Expanded Commercial Bank or
Universal Bank
REPORTER: DIG, MARYROSE LYN
b. Commercial Banks
FLORES, GERTRUDE LUZ N. c. Thrift Banks
d. Specialized Banks
QUESTIONS:

1. _________ defined as the system that
allows the exchange between financial
market participants such as lenders,
investors, and borrowers.
a. Monetary system
7. The organizations that are organized to
extend credit lines to consumers and to
industrial, commercial, agricultural
enterprises.
a. Private insurance companies
 b. Finance companies 14. Which is not belong in Specialized Bank.
c. Investment companies a. Development Bank in the Philippines
d. Credit unions b. Land Bank of the Philippines
c. Banco De Oro
8. Under the direct supervision and d. Philippine Amanah Bank
regulation of the office of the insurance
commission and are authorized to 15. How many years does American Bank
conduct life of non-life insurance operated?
business. a. 5 years
a. Private insurance companies b. 4 years
b. Financial companies c. 3 years
c. Investment companies d. 2 years
d. Non-stock savings and loan
associations 16. Who founded the first savings bank
here in the Philippines?
9. Who engaged exclusively in the a. Albert Einstein
business of extending secured or b. Michael Faraday
unsecured direct loans to individual and c. Dr. Eugen Fama
enterprises. d. Father Felix Huertas
a. Trust and pensions fund managers
b. Employee welfare funds 17. ________ or consumers are generally
c. Trust funds described as that group receiving
d. Lending investors income, majority of which typically from
wages and salaries.
10. Who are institutional and personal a. Central Bank
administrators of funds created or b. Foreign Participants
constituted for the benefit of others. c. Households
a. Trust and pensions fund managers d. The Government
b. Employee welfare funds
c. Trust funds 18. The ________ represented the first
d. Lending investors organized institutions in the Philippines
which began to be established in 1854.
11. Financial instruments and securities a. Obras Pias
created and sold in the primary b. Suez Canal
securities market. c. British Capital
a. Monetary System d. Abruey Newberry
b. Financial System
c. Financial Institutions 19. These are all private own institution or
d. Financial Markets financial institution that accept deposits
and lend money.
12. Which is not belong in Banking Sector. a. Thrift Bank
a. Thrift Bank b. Commercial Bank
b. American Bank c. Specialized Bank
c. Commercial Bank d. Universal Bank
d. Universal Bank
20. Business establishments engaged in
13. Best example in Universal Bank here in lending money on personal property
the Philippines. delivered as security, pledge or
a. BDO collateral.
b. Commerce a. Investment Houses
c. Philippine Bank of Communication b. Credit Unions
d. Philippine Betterrance Bank c. Pawnshops or Pawnbrokers
d. Lending Investors
 6. What is PIFITA stand for.
Measures and government action on A. PASSIVE INCOME AND
financial reforms FINANCIAL INTERMEDIARY
TAXATION ACT
Reporters: Llovit, Christian B. PASSION INCOME AND
FINANCIAL INTERMEDIARY
Mecina, Joyce Angela
TAXATION ACT
C. PASSERS INTERNAL AND
1. It means to improve the allocative
FINANCING INTERMEDIARY
efficiency of resources and ensure
TAXATION ACT
financial stability and maintain
confidence in the financial system
7. An act protecting individual personal
by enhancing its soundness and
information in information and
efficiency.
communications systems in the
A. Imperative performance
government and the private sector,
B. FINANCIAL REFORM
creating for this purpose a national
C. Challenges
privacy commission, and for other
purposes
2. Financial reforms began in earnest
A. DATA PRIVACY ACT OF 2012
with the deregulation of bank
B. DATA PRIVACY ACT OF 2013
interest rates.
C. DATA PRIVACY ACT OF 2015
A. July 1981
B. JULY 1984
8. to oversee and manage valuation-
C. JULY 1987
related concerns from local
governments.
3. The Philippine economy recovered
A. FORMER OF THE REAL
strongly starting in.
PROPERTY VALUATION
A. 1994
SERVICE
B. 1999
B. FORMING THE REAL
C. 1995
PROPERTY VALUATION
SERVICE
4. What is TRAIN stand for.
C. FORMING THE REAL
A. TAX REFORM FOR
PROPERTY VALUATION
ACCREDITATION AND
SERVICES
INCLUSION
B. TAX REFORM FOR
9. To address a problem that poses a
ACCELERATION AND
clear and present danger to the
INCLUSION
people.
C. TAX REFORM FOR
A. BAYANIHAN ACT (REPUBLIC
ACCELERATION AND
ACT 11469)
INCENTIVES
B. BAYANIHAN ACT (REPUBLIC
ACT 11479)
5. What is CREATE stand for.
C. BAYANIHAN ACT (REPUBLIC
A. CORPORATE RECOVERY
ACT 11499)
AND TAX INCENTIVES FOR
ENTERPRISES ACT
10. Establishing a single valuation base
B. CORPORATE RE-ENTER AND
for taxation of real property.
TAX INCENTIVES FOR
A. REAL PROPERTIES
ENTERPRISES ACT
VALUATION REFORM
C. CORPORATION RECOVERY
B. REAL PROPERTY
AND TAX INCENTIVES FOR
VALUATION REFORM
ENTERPRISES ACT
C. REAL PROPERTY VALUATION
REFORMS
 18. Small- and micro-self-employed
11. R.A 11647 amending Foreign professionals now have the option to
Investment Act of 1991 signed into a pay a flat tax of 8% on their gross
law on sales if it’s below ₱3__million.
A. March 2, 2022 A. ₱4
B. March 2, 2023 B. ₱5
C. March 2, 2024 C. ₱3

12. Signed into law on___________, the 19. Individuals earning _______annually
law effectively amends Republic Act are exempt from personal income
9485 or the Anti-Red Tape Act of tax.
2007. A. ₱250,000
A. 28 May 2017 B. ₱450,000
B. 28 May 2016 C. ₱350,000
C. 28 May 2018
20. To promote greater _______by
13. This particular agenda pertains to means of more competitive
improving the competitiveness of conditions
and ease of doing business in the A. REFORMS
_________. B. Efficiency
A. Philippines C. TAX
B. DUBAI
C. CHINA MONETARY THEORIES AND POLICY
IN THE PHILIPPINES (Questionnaires)
14. A single rate of _____will be
imposed on interest income,
dividends, and capital gains.
REPORTERS
A. 15% Merjillano, Princess Mae
B. 14% Merjilla, John Andrew
C. 13%
1. ___ is based on the idea that a change in
15. Republic Act ______accelerated the money supply is a key driver of economic
reduction in corporate income tax activity.
rate to ease the impact of the a. Monetary Policy
b. Monetary Theory
pandemic.
c. Fiscal Policy
A. No. 11534
d. Economic Policy
B. No. 11535
C. No. 11536 2. __ consists of buying and selling government
securities.
16. The primary beneficiaries of the law a. Reserve Ratio
are ____aims to grant businesses b. Discount Rate
reliefs c. Open Market Operation
A. MSMIs d. Fiscal Policy
B. MIMEs
C. MSMEs 3. A drop in the ____ will encourage banks to
borrow more from the Fed and therefore lend
17. Also provides for a generous and more to its customers.
flexible tax incentive system a. Reserve Ratio
A. tax incentives system b. Discount Rate
B. tax incentive system c. Open Market Operation
C. tax incentive systems d. Fiscal Policy
4. A decrease in the ratio enables banks to lend b. Monetary Theory
more, thereby increasing the supply of money. c. Fiscal Policy
a. Reserve Ratio d. Monetary Assumption
b. Discount Rate
c. Open Market Operation 12. __ BSP's monetary policy is to promote low
d- Fiscal Policy and stable inflation conducive to balanced and
sustainable economic growth.
5. The basic equation for the quantity theory is a. Goal
called___ b. Mission
a. The Fishnet Equation c. Vision
b. The Fish Equation d. Objective
c The Fishbowl Equation
d. The Fisher Equation 13. How many years BSP implemented The
Central Bank Act after the war?
a. 10 years
6. The Keynesian Theory is developed by____ b. 5 years
a. John Maynard Keynes and his students c. 8 years
b. Johnny Maynard Keynes and his students d. 6 years
c. John Maynard Key and his students
d. John May Keynes and his students 14. What year was BSP’S monetary policy
gaining its policy independence essential to the
7. Fisher Equation/ Fisher effect describes the achievement of the long-run price stability
relationship between inflation and both_____ objective?
a. Not real and nominal interest rates a. 1970’s
b. real and nominal interest rates. b. 1980’s
c. Nominal and interest rates c. 1990’s
D. Normal and real d. 2000’s

8. ___ proposes that the exchange value of 15. Monetary Policy Framework on the Q3 1995-
money is determined like any other good, with 2001.
supply and demand. a. Monetary Aggregate Targeting
a. The quality theory of money b. Modified Monetary Aggregate Targeting
b. The money theory c. Inflation Targeting
c. The quantity theory of money d. Aggregate Inflation Targeting
d. The theory of money
16. Monetary Policy Framework states that
9. _ believe that regulating the money supply is Central Bank determines the level of money
the most effective and direct way of regulating supply needed to achieve a desired level of
the economy. inflation.
a. Keynesian economist a. Monetary Aggregate Targeting
b. Monetary Policy b. Modified Monetary Aggregate Targeting
c. John Maynard Keynes c. Inflation Targeting
d. Monetarist d. Aggregate Inflation Targeting

10. Focused on government deficit/surplus 17. What monetary policies are essential to the
spending to impact economic activity effective functioning of financial systems
a. Money worldwide?
b. Keynesian Theory a. Loans and Credit Operation
c. Monetarist b. International Cooperation
d. Velocity c. Payments and Settlements System Oversight
d. Currency Management and Inclusive Finance
11. ___ It is the measures or actions taken by
the central bank to influence the general price 18. It supports the promotion and maintenance
level, price stability, and the level of liquidity in of price stability, external sustainability, and the
the economy. integrity and value of the Philippine peso.
a. Monetary Policy a. International Operation Department
b. Systemic Risk Management
19-20. Is the inflation forecast in line with the
target? Explain?
Answer:
If YES, no change in policy setting
If NO, BSP adjusts policy setting
How Financial Condition is affected
by Financial and Economic Policies
(Questionnaires)
REPORTERS: Nacional, Myca
Nullan, Shaine
1. It is expressed in terms of its assets,
liabilities, and equity.
a. financial policy
b. financial condition
c. economic policy
d. none of the above
2. It can include topics such as borrowed
capital, investments, dividend policies,
CORRECT ANSWER: B. financial condition
and other financial decisions.
a. financial policy
b. financial condition
c. economic policy
d. none of the above
3. It is a set of ____ that an organization
uses to make decisions about its
financial affairs.
a. topics
b. guidelines
c. economic policy
d. financial policy
4. The following are true about financial
policy except for one: (A)
a. refers to government initiatives to
influence the economy of a particular
region, state, or country.
b. Outline a clear vision of how your
jurisdiction will manage its financial
resources to provide the best value to
the community.
c. Promote long-term and strategic
thinking.
d. Increase accountability and minimize
confusion by identifying who can take
what actions
5. It should be designed to help an
organization achieve its financial goals.
a. economic policy
b. financial condition
c. financial policy
d. none of the above
6. It is used to assess the company's ability
to pay its debts and meet its financial
obligations.
a. economic policy
b. financial condition
c. financial policy
d. none of the above
7. How does Financial Condition is
affected by Financial Policies?
a. These policies can include things like
taxation, government spending, interest
rates, tax rates, redistribution of income
from rich to poor, and about the supply
of money.
b. Outline a clear vision of how your
jurisdiction will manage its financial
resources to provide the best value to
the community.
c. These policies can include things
like how the company plans to raise
money, how it plans to spend money,
and what kind of financial risks it is
willing to take.
d. Increase accountability and minimize
confusion by identifying who can take
what actions
8. The _____ of a company is usually
expressed in terms of its assets,
liabilities, and equity.
a. economic policy
b. financial condition
c. financial policy
 d. none of the above
9. It outline a clear vision of how your
jurisdiction will manage its financial
resources to provide the best value to
the community.
a. financial policy
b. financial condition
c. economic policy
d. none of the above
10. Financial policies increase _____and
_____confusion by identifying who can
take what actions.
a. financial and economic
b. financial condition and economic
policy
c. good bond ratings and reduce the
cost of borrowing
d. accountability, minimize
11. A policy that tries to influence or
manage an economy.
a. Economic policy
b. Financial Policy
c. Financial condition
d. None of the above
12. The government normally_____ and
______ economic policy.
a. Financial and financial
b. Implements and administers
c. Economic and economic
d. None of the above
13. Taxation, government budgets, interest
rates, and other aspects of the economy
are all subject to______ by
governments.
a. Financial condition
b. Financial Policy
c. Economic policy
d. None of the above
14. Refers to government initiatives to
influence the economy of a particular
region, state, or country.
a. Financial Policy
b. Economic policy
c. Financial condition
d. None of the above
15. Fiscal policy, monetary policy, and trade
policy are a type of?
a. Economic policy
b. Financial Policy
c. Financial condition
d. None of the above
16. The financial condition is affected by
____ and ____?
a. Financial and economic
b. Financial and condition
c. Power Puff Girls and Spies
d. None of the above
17. What type of economic policy uses
government spending and tax policies to
influence economic conditions,
especially macroeconomic conditions?
a. Price stability
b. GPD
c. Fiscal policy
d. Financial condition
18. What type of economic policy comprises
the agreements, rules, and procedures,
that regulate its dealings with other
countries?
a. Financial condition
b. Reform
c. Monetary Theory
d. Trade Policy
19. A policy that includes taxation,
government spending, interest rates,
and tax rates.
a. financial policy
b. financial condition
c. economic policy
d. none of the above
20. Taxation,______ ,_______, and other
aspects of the economy are all subject
to economic policy by governments.
a. Financial, condition
b. Economic, policy
c. government budgets, interest
rates
d. None of the above
Discuss & illustrate the Philippine
National Income (Questionnaires)
REPORTERS: Nuñez, Erika Trixia a. GNI

Obiña, Kiana Patricia b. GNP

1. _________ means the value of goods & c. GDP

services produced by a country during a d. CNI
financial year.

a. GDP
6. ______ is the total amount of money earned
b. National Income by a nation's people & businesses.
c. GNI a. GNI
d. Net Income b. GNP

c. GDP
2. It is the progress of a country that can be d. CNI
determined by the growth of the nation

a. National Income
7-8. Give the 2 groups that can be classified as
b. GNI the definition of national income.
c. GDP Answer: Traditional Definition & Modern
d. Concept of National Income Definition

3. The National Income is the total amount of 9.-10 What are the 2 Modern National Income
income accruing to a country from ________ in Definition?
a years time. Answer: GDP & GNP
a. Economic Activities 11-13. Give the 3 ways to Measure the National
b. Traditional Activities Income.

c. Modern Activities ANSWERS:

d. All of the above •The value of expenditures.

•The value of inputs used in production.

4. The total value of goods produce & services •The sum of value added at each level of
rendered within a country during a year is its production.
_______ 14-20. Give 7 Importance of National Income.
a. GNI ANSWERS:
b. GNP Setting Economic Policy
c. GDP Inflation and Deflationary Gaps
d. CNI Budget Preparation

Standard of Living
5. ______ is needed to collect and assess the Defense and Development
data from all productive activities.
Sets of methods for measuring National
Income
Income Method
Product Method
Expenditure Method
Value Added Method
PRE-FINALS
REPORT OF OLIVER AND
ORONCILLO
QUESTIONS:
1. The total monetary or market value of
all the finished goods and services
produced within a country’s borders
in a specific time period.
a. Real GDP
b. Gross Domestic Product
c. Nominal GDP
2. An assessment of economic
production in an economy that
includes current prices in its
calculation.
a. Real GDP
b. Gross Domestic Product
c. Nominal GDP
3. An inflation-adjusted measure that
reflects the number of goods and
services produced by an economy in
a given year
a. Real GDP
b. Gross Domestic Product
c. Nominal GDP
4. A measurement of the GDP per
person in a country’s population.
a. GDP Growth Rate
b. GDP Per Capita
c. GDP Purchasing Power Parity
5. This compares the year-over-year (or
quarterly) change in a country’s
economic output to measure how fast
an economy is growing
a. GDP Growth Rate
b. GDP Per Capita
c. GDP Purchasing Power Parity
6. Also known as the spending
approach
a. Expenditure Approach
b. Production Approach
c. Income Approach
7. The reverse of the expenditure
approach
a. Expenditure Approach
b. Production Approach
c. Income Approach
8. Calculates the income earned by all
the factors of production in an
economy
a. Expenditure Approach
b. Production Approach
c. Income Approach
9. Represents government consumption
expenditure and gross investment.
a. Consumption
b. Government Spending
c. Investment
10. Refers to private consumption
expenditures or consumer spending.
a. Consumption
b. Government Spending
c. Investment
11. Refers to private domestic
investment or capital expenditures
a. Consumption
b. Government Spending
c. Investment
12. Measures the economic activity
within the physical borders of a
country
a. Gross National Product
b. Gross National Income
c. Gross Domestic Product
 13. A measurement of the overall
production of people or corporations
native to a country
a. Gross National Product
b. Gross National Income
c. Gross Domestic Product
14. The sum of all income earned by
citizens or nationals of a country
a. Gross National Product
b. Gross National Income
c. Gross Domestic Product
15. Gross Domestic Product was
proposed in the year
a. 2022
b. 1837
c. 1937
REPORT OF PRESENTA AND
PEROCILLO
QUESTIONS:
1.Economic recovery is the business cycle
stage following a __________
A. Expansion
B. Gross Domestic Product (GDP)
C. Recession
2. An ____ ______ occurs after a recession
as the economy adjusts and recovers some
of the gains lost during the recession.
A. Economic recovery
B. Market economy
C. Military Expansion
3. During an economic recovery, the
economy undergoes a process of adaptation
and adjustment to new _________
A. Policy
B. Condition
C. Factor
4. An _______ is a complex system of
interrelated production, consumption, and
exchange activities that ultimately
determines how resources are allocated
among all the participants.
A. Economy
B. Economic recovery
C. Economic crisis
5. Recovery is an economy healing itself
from the damage done, and it sets the stage
for a new _________
A. Expansion
C Gross Domestic Product (GDP)
D. Recession
6. ________ often play a big part in defining
an economy’s business cycle phase as well
as the stages of economic growth or
contraction it may be experiencing.
A. Economists
B. Buyer
C. Borrower
7. _________ can be things such as the stock
market, which often rises ahead of an
economic recovery.
A. Expansion
B. Leading Indicators
C. Gross Domestic Product (GDP)
8. _______ is usually the key indicator of an
economic phase.
A. Leading Indicators
B. Gross Domestic Product (GDP)
C. Recession
9. real ______ have helped trigger the
recession, such as the oil price spikes of the
1970s and 2008.
A. Economic shocks
B. Economist
C. Economy recovery
10. In order for the process of recovery to
proceed, it is critical that the business and
__________ of the recession are carried out
and the resources tied up in them are
allowed to flow to new uses and new
businesses.
A. Investor
B. investment liquidations
C. liquidations
11. Some of these __________ end up in the
hands of other businesses, sometimes even
brand new businesses, that can put them to
productive use.
 c. Social distancing
A. Economic shocks d. COVID19
B. Capital Asset
C. Economy recovery 2. The following are effects of the pandemic
in the enterprises except for one.
12. This is usually because future a. Increasing costs
expectations drive _____________ b. Reducing sales
c. Remuneration or retrenchment
A. Stock Prices d. More customers
B. Lagging Indicator
C. Capital Asset 3. WFH is an acronym for that most
organizations embraced during COVID19
13. On the other hand, employment is pandemic.
typically somewhat of a _________. a. Wok from Home

A. Stock Market 4. More than one third of enterprises faced

B. Market Economy — in the product supply chain
C. Lagging Indicator b. Fast delivery
D. Capital Asset c. More customers
d. Severe bottlenecks
14. In the end, the recovery can change the
patterns of _________ in an economy, 5. Supply chain bottlenecks were mainly
sometimes drastically and sometimes barely caused by the following during
noticeable. pandemic except for one
a. Slow customs clearance on
A. Market Economy imported goods
B. Lagging Indicator b. Traffic
C. Economic Activity c. Limited operations with local
suppliers
15. To assess the economy, economists look d. Shortage of trucks/drivers
at both leading and ______ economic
indicators in their analysis. 6. According to the PSA the GDP
contracted by how many percent in the
A. Lagging second quarter of 2020
B. Expansion a. 16.5%
C. Leading b. 13.4%

16-20 According to Executive order 166 there 7. In what quarter of the year 2020
are ten-point policy agenda, Give at least five recorded the lowest decrease in GDP?
policy agenda. a. Q1
b. Q2
❑ Strengthen healthcare capacity
❑ Reopen the economy and expand public 8. While critical in safeguarding public
transport capacity health against the spread of COVID19,
❑ Resume face to face learning the — dramatically limited business
❑ Reduce restrictions on domestic travel activities throughout much of the
and standardized LGU requirements Philippines.
a. ECQ
❑ Relax requirements for international
b. Retrenchment
travel
c. Inflation
REPORT OF ORTIZ & PAZ 9. Prolonged containment of COVID19
QUESTIONS: increases the risk of the business failure
1. Shocked global, regional, and national and bankruptcy
economies. a. True
b. Travel bans b. False

10. Work from home became an oft used
alternative approach to maintain
business activity for some business
enterprise.
a. True
11. According to the “statement on the state
of financial stability meeting of the
financial stability coordination council”
last May 18, 2021, there are many risks
that are under continuous monitoring,
how many are those that are identified?
b. 2
c. 4
d. 6
e. 5
12. Philippine inflation currently remains
elevated and above the 4% upper
bound. Our current view is that this
condition is transitory, with average
inflation expected to fall into the band by
yearend
a. Liquidity risk
b. Risk to monetary policy
c. Risk to fiscal policy
13. Philippines Inc. is highly interconnected,
marked by the industry leadership of
identified firms.
a. Contagion and concentration risks
b. Risk to macroeconomic
14. COVID19 has heightened risk aversion
in financial market and loans
outstanding have been tempered. This
development is being actively
monitored.
a. Liquidity risk
b. Risk to monitory policy
15. With no threat of an overheating
economy and the markets already liquid,
the current policy rate is appropriate
given the path of growth and inflation.
a. Risk to monetary policy
FINALS
REPORT OF SAYSON, SARMIENTO
QUESTIONS:
1. It is the portion of a country's debt that is
borrowed from foreign lenders, including
commercial banks, governments, or
international financial institutions.
a. Foreign borrowing
2. Even if the interest rate and other terms of a
foreign loan are more favorable than
domestic debt, the foreign loan might still be
more expensive in the end. This is due to
the inherent.
b. foreign exchange risk
3. When money raised abroad flows into the
country it must be exchanged for the
domestic currency which risks causing
inflation as the inflows will result in an
increase in money supply. What is this
called?
a. Crowding-out effect
4. If large amounts of external debt need to be
repaid, then there is less money left for
investment purposes. It hampers future
d. economic growth
5. period is the interim period
between the initial investment in a project
and the time the project becomes
productive.
d. gestation
6. is defined as the ratio of total outstanding
debt at the end of the year to the economy’s
exports of goods and services for any one
year.
a. The debt-to-exports ratio
7. is defined as the ratio of the total
outstanding external debt at the end of the
year to annual GDP.
a. The debt-to-GDP ratio
8. is defined as the ratio of future projected
debt-service payments discounted by
market-based interest rates (a risk-neutral
commercial reference rate) to annual fiscal
revenue.
b. The ratio of the present value of debt to
fiscal revenue
9. is defined as the ratio of external debt-
service payments of principal and interest on
long-term and short-term debt to exports of
goods and services for any one year.
c. The debt-service-to-exports ratio
10. Interest paid on external debt is an outflow
of resources abroad to foreigners, whose
income and consumption are taxed by their
own governments. It is not a domestic
 transfer that could yield tax revenue to the
government.
a. Debt service outflow
11. When overdone, all forms of borrowing can
plunge a country into a debt crisis or lead to.
d. default
12. A country with a high amount of external
debt raises caution among prospective
lenders, and they become unwilling to lend
more money. Since it cannot raise further
debt, the country might fail to repay external
debt, a phenomenon known as 
a. sovereign default
13. Borrowing in may facilitate
investment and economic development to
the extent that it provides the country with
more affordable financing and that the
borrowed funds are channeled to productive
sectors.
c. foreign currency
14. borrowing in the strict
sense includes only borrowing from the
private sector of the economy—from
individuals, corporations, and various
financial institutions, including banks.
d. government
15. High are associated with
slower economic growth and rising default
risk.
d. sovereign debt level
16. Depreciation (or devaluation) raises the
home currency value of outstanding foreign
debt and depresses the foreign currency
value of domestic revenue. This can lead to
a country’s debt profile looking more
d. vulnerable
17. By comparison, domestic debt doesn’t
expose the government to currency risk and
is therefore
a. Safe
18. When a government’s expenditure exceeds
how much it earns in a year, it faces a
a. Fiscal deficit
19. A is determined by the debt-to-
exports ratio and interest rates, as well as by
the term structure of debt obligations.
b. sustainable level
20. The ratio of the present value of debt to
fiscal revenue can be used as a measure of
sustainability in those countries with a
relatively open economy facing a heavy
of external debt.
a. Fiscal burden
Reporters: Soloria, Kristian Angelo
Toledo, Rendell Stuart
1. Who may decide to raise some resources by
borrowing taxes for a variety of reasons? -
GOVERNMENT
2. In what century reaction the global recession
and high rates of
Inflation? - 20th CENTURY
3-7. In the European Economic Community,
what are the (5) Country that experienced
deficits on a yearly average between 1960 and
1973.
- BELGIUM, ICELAND, ITALY, THE
NETHERLANDS, & UNITED KINGDOM
8-9. This debt is referred held outside of the
insuring jurisdiction & held inside the
jurisdiction?
- INTERNAL & EXTERNAL DEPT
10. This country had lost 99% of its value in
1914? -FRANCE
11. This owned by governments can take the
shape of bonds, notes, bills and other
instruments with payments terms that must be
met by the holders? - FORMS OF PUBLIC
DEPT
12. What country was trend of the debt war
upward throughout the next 150 years largely
because of wars? - UNITED KINGDOM
13. This effect is to reduce the liquidity of the
lender, whose command over cash is dependent
upon the nature of the securities? - EFFECTS
OF BORROWING
14. What country during the 1970’s the debt
increased each fiscal year? - UNITED STATES
15. This country dept continued to rise until
1977, when it briefly decreased by about 5
percent - CANADA
TOPIC: BUSINESS CYLE b. Trough
REPORTER: PAZ & MECINA c. Recession
d. Peak
1. It is a cycle of fluctuations in the Gross
Domestic Product (GDP) around its
7. It is when there is a turnaround in the
long-term natural growth rate. economy. Demand starts to pick up due
to low prices and, consequently, supply
a. Business Cycle
begins to increase.
b. Market Cycle a. Expansion
c. Life Cycle b. Recovery
d. Financial Cycle c. Trough
2. A stage where the economy d. Peak
experiences relatively rapid growth,
interest rates tend to be low, and
8. He argue that the creative destruction of
production increases. capitalism can be a good thing. In a
recession, inefficient firms go out of
a. Peak
business and it acts as an incentive to
b. Expansion cut cuts.
c. Recession a. J.Schumpeter
d. Depression b. C.Barnard
3.  A stage where the economy then c. S.Jacobs
reaches the saturation point. d. M.Cancela
a. Recession 9. The optimistic and pessimistic mood of
the entrepreneur. When entrepreneurs
b. Depression
are optimistic about future market
c. Peak conditions, they take up investment.
d. Trough a. Psychological Factors
4. A stage where the demand for goods b. Money Supply.
and services starts declining rapidly and c. Over Investment
steadily in this phase. d. Marginal Efficiency of Capital
a. Peak 10. If there is expansion in money and credit
b. Recession supply, there will be raised economic
activity. If there is contractions, there will
c. Depression
be down fall in the economic activity.
d. Expansion a. Psychological Factors
5. This is a major downturn in the business b. Money Supply.
cycle characterized by sharp and c. Over Investment
sustained declines in economic d. Marginal Efficiency of Capital
activity; high rates of unemployment,
and poverty. 11. Excessive investment in capital goods
a. Recession industries brings upswing and
b. Trough downswing when there is a fall in
c. Peak investment.
d. Depression a. Psychological Factors
6. It is reached when the economy hits a b. Money Supply.
low point, with supply and demand c. Over Investment
scraping the bottom before growth d. Marginal Efficiency of Capital
a. Depression
12. When the rate of marginal efficiency of
capital gets higher the, expansion phase
of trade cycle commences. There is a
contraction phase when the rate of
marginal efficiency of capital is lower.
a. Psychological Factors
b. Money Supply.
c. Over Investment
d. Marginal Efficiency of Capital
13. It is available resources that are utilized
for the production of weapons which
greatly affect the product of both capital
and consumer goods. This fall in
production decreases income, and
profits which further creates
unemployment. These create
contraction in economic activity.
a. Wars
b. Postwar Period
c. Scientific Development
d. Gold Discoveries
14. The level of consumption and
investment goes upward. Both the
government and individuals involve the
construction (houses, roads, bridges,
and etc. All these activities increase the
effectiveness due to which the
economics variable, output, income and
employment goes upward.
a. War
b. Surplus, Exports, and Foreign Aid
c. Postwar Period
d. Population Growth
15. Every day new products come to the
markets like mobile phones, laptops,
etc. These products require a huge
amount of investment through which
new technology of products is adopted.
All this increases income, employment
and profit etc. and plays an important
part in the revival of economy.
a. Gold Discoveries
b. Scientific Development
c. Surplus, Exports, and Foreign Aid
d. Weather
16. It stimulate the volume of international
trade and help in adjusting trade deficit,
loans etc. the rising income lead to
expansion in economic activity.
a. Gold Discoveries
b. Scientific Development
c. Surplus, Exports, and Foreign Aid
d. Weather
17. It raises the level of consumption and
investment spending which helps in
increasing output, income, and
employment level.
a. Gold Discoveries
b. Scientific Development
c. Surplus, Exports, and Foreign Aid
d. Population Growth
18. It is an important factor that can cause
economic activities. If in any year,
weather is good the output of the
agricultural sector will go upward.
a. Gold Discoveries
b. Scientific Development
c. Surplus, Exports, and Foreign Aid
d. Weather
19. When it is higher than the economic
growth rate, income level and
consumption expenditure and savings
will be low.
a. Gold Discoveries
b. Scientific Development
c. Surplus, Exports, and Foreign Aid
d. Population Growth
20. Used by governments to influence the
economy. It include changes to levels of
taxation and government spending.
a. Fiscal Policy
b. Monetary Policy
c. Disbursement Policy
d. Financial Policy
21. Impacts the money supply in an
economy, which influences interest rates
and the inflation rate.
a. Fiscal Policy
b. Monetary Policy
c. Disbursement Policy
d. Financial Policy