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Activity 4&5
Activity 4&5
The two highest denominations of the English Series were later withdrawn from
circulation on December 31, 1957, pursuant to R.A. No. 1516. Only notes of 1 up to 50 pesos
continued to be printed until 1961.
Small-denomination notes were also printed from 1951 through 1957 (5-, 10-, 20- and
50-centavos) to replace the US-Filipinas metallic coins. In 1955, the Half-Peso note of bigger
dimensions also went into circulation. On January 5, 1970, these small notes ceased to be legal
tender. Pursuant to Presidential Decree No. 378, all banknotes of the English Series were
considered demonetized after February 28, 1974.
In 1958, the centavo notes were discontinued and a new, entirely base metal coinage was
introduced, consisting of bronze 1 centavo, brass 5 centavos and nickel-brass 10, 25 and 50
centavos. The half-peso ceased to exist; the 25-centavo coin replaced the 20-centavo note; 50-,
10- and 5-centavo denominations were maintained. This series was considered demonetized after
August 31, 1979, except for the 10-centavo denomination that was considered demonetized only
after January 2, 1998.
Creating more money is not as easy as it sounds. Printing more money can cause harmful
inflation while insufficient money supply can cause deflation which may also damage the
economy. The Bangko Sentral ng Pilipinas has the important task of keeping this in balance.
We shouldn’t be dependent on our government to provide us our needs. We, as an individual can
increase our money through our jobs, businesses, and investments.
3. What are the security features of the Enhanced New Generation currency series?
The enhanced set of banknotes under the New Generation Currency series, these banknotes are
equipped with the latest anti-counterfeiting technology and embedded with tactile marks that will
make it easier for the elderly and persons with disabilities to differentiate each denomination.
Price stability helps in achieving higher employment and increased economic activity, as it:
increases transparency, as a stable price level helps people to understand better the relative
change in prices when the price of one product changes against that of another, without a change
in the overall price level causing confusion. This lets them make sensible decisions about
consumption and investment and use their money more efficiently;
reduces the inflation risk premiums in interest rates, because if creditors are confident that prices
will remain stable in the future, they do not add any additional charge to cover the inflation risk
of holding assets. This then lowers real interest rates and makes investment easier;
makes it less likely that individuals and businesses will protect themselves against inflation or
deflation, by tying amounts to be paid under contracts to changes in prices for example. High
inflation can also lead to hoarding of non-monetary assets like real estate;
reduces the distortions that tax and social systems can cause to the behavior of participants in the
economy. Inflation or deflation can make those distortions worse, as budget systems do not
usually allow tax rates and social insurance payments to be indexed to the inflation rate;
7. Discuss in detail the BSP’s role in promoting price stability (10 pts.).
The BSP's main responsibility is to formulate and implement policy in the areas of money,
banking and credit with the primary objective of preserving price stability. Price stability refers
to a condition of low and stable inflation. By keeping price stable, the BSP helps ensure strong
and sustainable economic growth and better living standards.
DESIGN ELEMENTS:
References:
https://www.bsp.gov.ph/SitePages/CoinsAndNotes/EnglishSeries.aspxhttps://
www.accountable.ph/why-bangko-sentral-ng-pilipinas-wont-print-more-money/
#:~:text=Printing%20more%20money%20can%20cause,may%20also%20damage%20the
%20economy.
https://www.bis.org/review/r200807o.htm#:~:text=Today%2C%20we%20unveil%20the
%20enhanced,disabilities%20to%20differentiate%20each%20denomination
https://www.bsp.gov.ph/SitePages/PriceStability/PriceStability.aspx https://
www.eestipank.ee/en/monetary-policy/importance-price-stability
https://www.bsp.gov.ph/Pages/AboutTheBank/SealCharterAndHistory/
TheBSPSeal.aspx#:~:text=The%20three%20golden%20stars%20represent,Luzon%2C
%20Visayas%2C%20and%20Mindanao.