4. What government agency in the Philippines is responsible for managing monetary policy?
A. Department of Trade and Industry
B. Bureau of Customs
C. Bangko Sentral ng Pilipinas
D. Department of Finance
Answer (1)
The answer is letter C. Bangko Sentral ng PilipinasThe BSP is like the country’s financial brain. It controls how much money is in circulation, adjusts interest rates, and manages inflation. These actions are known as “monetary policy.”For instance, if inflation is rising too fast, the BSP may raise interest rates to reduce spending. Or if the economy is slowing down, it might lower rates to encourage borrowing and investment. This helps keep prices and economic growth stable.
