Topic 3 : Part 2

12問 • 1年前

問題一覧

When the BSP uses its tools, it can either increase or decrease the overall level of money supply in the economy, called ___________ monetary policy or ____________ monetary policy, respectively.

expansionary, contractionary

____________monetary policy is a monetary policy stance that intends to increase the level money supply in the economy.

expansionary

When the BSP engaged in _______________ monetary policy, it can do any of the decrease the overnight repurchase rate; decrease the overnight reverse repurchase rate; decrease the reserve requirement; discourage deposits to the special deposit account facility; decrease the rediscount rate; and purchase government securities.

expansionary

When the level of liquidity is high, it means more hinds are available for lending by banks, and this eventually result to higher aggregate demand of the economy.

Expansionary Monetary Policy

However, when the BSP engages in ______________ monetary policy, it can lead to price pressures, thus fueling the level of inflation.

expansionary

Expansionary monetary policy is a monetary policy stance that intends to ____________ the level money supply in the economy. When the BSP engaged in expansionary monetary policy, it can do any of the __________ the overnight repurchase rate; _________ the overnight reverse repurchase rate; ____________ the reserve requirement; ___________ deposits to the special deposit account facility; ___________ the rediscount rate; and purchase government securities. When the level of liquidity is _____, it means more hinds are available for lending by banks, and this eventually result to _______ aggregate demand of the economy. However, when the BSP engages in expansionary monetary policy, it can lead to price pressures, thus fueling the level of inflation.

increase, decrease, decrease, decrease, discourage, decrease, high, higher

_____________ monetary policy is a monetary policy stance that aims to decrease the level of money supply in the economy.

contractionary

______________ monetary policy can be done by the BSP through any of the following: increasing the overnight repurchase rate; increasing the overnight reverse repurchase rate; increasing the reserve requirement; encouraging deposits to the special deposit account facility, increasing the rediscount rate; and selling of government securities.

Contractionary

______________ monetary policy may lead to lower overall demand because of the lesser available funds for lending by banks

Contractionary

Lower economic activity could eventually hamper price pressures, and result to lower inflation path for the economy.

Contractionary Monetary Policy

Contractionary monetary policy is a monetary policy stance that aims to ____________ the level of money supply in the economy. Contractionary monetary policy can be done by the BSP through any of the following: ___________the overnight repurchase rate; ___________ the overnight reverse repurchase rate; ___________ the reserve requirement; ____________deposits to the special deposit account facility, ___________ the rediscount rate; and selling of government securities. In contrast with expansionary monetary policy, contractionary monetary policy may lead to ________ overall demand because of the ________ available funds for lending by banks.________ economic activity could eventually hamper price pressures, and result to ________inflation path for the economy.

decrease, increase, increase, increase, encouraging, increasing, lower, lesser, Lower, Lower

However, of all the monetary policy tools, changes in BSP's policy ______________ will determine its monetary policy stance.

interest rates

Topic 1

Mikyii · 67問 · 1年前

Topic 1