REPUBLIC OF THE PHILIPPINES

DAVAO ORIENTAL STATE COLLEGE OF SCIENCE AND TECHNOLOGY CATEEL CAMPUS

MAHAN-OB, CATEEL, DAVAO ORIENTAL

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FM 31
Monetary Policy and Central Banking
On-line Quiz

Ramon P. Montebon Jr. Date: March 19 2020 Score: __

3nd year BSBA Time/Day Schedule: 2:00-3;00pm/MWF
Section 3A /Room 22A 2nd semester 2019-2020
GENERAL

INSTRUCTION; Answer the following question via on-line using the group chat. Share the
questions to your classmates who cannot be reached by internet signal if each one of them
happens to meet you somewhere in places where there are no big crowds to prevent the
entry of possible COVID-19. Or else advise them either through cellular phone text or call to
text or call me so they could avail to take and submit their exam via on-line, share only the
questions asked not your answer. Deadline for submission will be tomorrow, march 19,
2020, 12 midnight.

ESSAY: answer briefly but accurately the following questions. Discuss and explain. Ten (10)
pints will be credited for each item.

ANSWERS:

1.) Provides for the rules on deposits, loans, and investment trust operation placement
under conservatorship and cessation of banking. As such, assets held in trust or those
received by the bank in fiduciary capacity.
2.) It is the policy of the Bangko Central ng Pilipinas to promulgate rules and regulation
necessary for the proper conduct and development of trust of other fiduciary business and
investment management activities scope of trust other fiduciary business activities.
3.) The primary objective of corporate governance should be safeguarding stakeholders
interest in conformity with public interest on a sustainable basis among stakeholders
particularly with respect of retail banks, shareholders interest would be secondary to
depositor’s interest.
4.) The very reason for the creation of rural banks in 1952 when Republic Act 720 was
enacted – was for them to be the key of local financial institutions providing credit to farmers
expending the rural economy and effective manner.
5.) Banks reserves are the cash minimums that must be kept on hand by financial
institutions in order to meet Central Bank requirements. The bank cannot lend the money but
must keep it in the vivit on site at the Central Bank. In order to meet any large and
unexpected demands for wedrawals.