You are the governor of the BSP. The newly elected president wants to have a meeting with you together with his economic goals are aligned. Among the agenda is to discuss the continued depreciation of the Philippine peso. Being in charge of the country's monetary policies, use any monetary instruments, to explain to the president how any of the monetary tools can be used to strengthen the local currency. you can use these instruments: 1. Bank Rate 2. Open Market Operation or; 3. Reserve Requirement Ratio
Monetary Policy and Interest Rate
Monetary policy refers to the policy which is enforced by the central bank of the country to control the money supply and economic development of the country. The main aim of monetary policy is to manage inflation, consumption, and growth of the economy. The central bank influences interest rates to manage the money supply. In monetary policy, the central bank may revise the interest rate to increase and decrease the flow of money.
Development of the US Monetary System
The monetary system of a country refers to the system in which a government provides money in the economy of the country. In the modern-day monetary system, usually it contains the National Treasury, the mint where the notes are being printed. The Central bank and the commercial banks regulate the money supply in the economy of a country.
You are the governor of the BSP. The newly elected president wants to have a meeting with you together with his economic goals are aligned. Among the agenda is to discuss the continued
you can use these instruments:
1. Bank Rate
2. Open Market Operation or;
3. Reserve Requirement Ratio
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