MonPol - L2: Monetary Standard

GOVERNMENT AUTHORITY

CENTRAL BANK CONTROL OF MONEY SUPPLY

PUBLIC TRUST IN PRICE STABILITY

Based from the principles of Bangko Sentral ng Pilipinas, money today derives value not from gold, but from:

MONETARY STANDARD

is not just about money, it is about: maintaining trust, stability, and purchasing power.

COMMODITY STANDARD

FIAT STANDARD

MANAGED CURRENCY STANDARD

WHAT ARE THE TYPES OF MONEY STANDARD

COMMODITY STANDARD

A monetary system where money is backed by a physical commodity, such as gold or silver.

COMMODITY STANDARD

Currency is convertible into a commodity

COMMODITY STANDARD

Money supply depends on commodity reserves

gold or silver

in monetary standard, money is backed by a physical commodity such as:

COMMODITY STANDARD

It is a type of monetary standard wherein its one of advantage is: strong stability

COMMODITY STANDARD

It is a type of monetary standard wherein its one of advantage is: high trust

COMMODITY STANDARD

It is a type of monetary standard wherein its one of disadvantage is: No flexibility during crises

COMMODITY STANDARD

It is a type of monetary standard wherein its one of disadvantage is: Economic growth limited by gold supply

COMMODITY STANDARD

it is a type of monetary standard wherein its one of disadvantage is: Cannot respond to modern financial shocks

COMMODITY STANDARD

This system is no longer used

FIAT STANDARD

Money has value because it is declared legal tender by the government, not because it is backed by a commodity.

FIAT STANDARD

Currency is accepted by law

FIAT STANDARD

Value is based on trust and economic stability

FIAT STANDARD

Money supply is actively managed

FIAT STANDARD

Inflation is controlled through monetary policy

BANGKO SENTRAL NG PILIPINAS

Their role is to ensure that the value of money is preserved by keeping inflation low and stable.

FIAT STANDARD

it is a type of monetary standard wherein its one of advantage is: Flexible money supply

FIAT STANDARD

it is a type of monetary standard wherein its one of advantage is: Supports economic growth

FIAT STANDARD

it is a type of monetary standard wherein its one of advantage is: Allows government intervention

FIAT STANDARD

it is a type of monetary standard wherein its one of disadvantage is: Risk of Inflation

FIAT STANDARD

it is a type of monetary standard wherein its one of disadvantage is: Depends heavily on government credibility

FIAT MONEY

works only if: There is a strong central bank and disciplined policy

MANAGED CURRENCY STANDARD

A monetary system where: Money is fiat

MANAGED CURRENCY STANDARD

A monetary system where: Actively controlled by a central bank

MONEY SUPPLY

INTEREST RATES

CREDIT FLOW

The Central Bank regulates:

POLICY INTEREST RATES

OPEN MARKET OPERATIONS

RESERVE REQUIREMENTS

The Bangko Sentral ng Pilipinas implements this through monetary policy tools, such as:

BSP INCREASES INTEREST RATES

BORROWING DECREASES

SPENDING SLOWS

PRICES STABILIZE

What happens if inflation rises?

MANAGED CURRENCY STANDARD

it is a type of monetary standard wherein its one of advantage is: Highly flexible

MANAGED CURRENCY STANDARD

it is a type of monetary standard wherein its one of advantage is: Responsive to crises

MANAGED CURRENCY STANDARD

it is a type of monetary standard wherein its one of advantage is: Supports economic stability

MANAGED CURRENCY STANDARD

it is a type of monetary standard wherein its one of disadvantage is: Policy mistakes may cause recession or inflation

MANAGED CURRENCY STANDARD

it is a type of monetary standard wherein its one of disadvantage is: Requires strong governance