Republic of the Philippines

CEBU TECHNOLOGICAL UNIVERSITY

Main Extension Campus
Bitoon, Dumanjug Cebu
Fax (032) 470-9298
MIDTERM EXAMINATION
in
BASIC ECONOMICS with TLR
January 17- 22, 2017

LIFE is the most difficult exam. Many people fail because they try to copy
othersnot realizing that everyone has a different test paper.
Direction: Identify what is asked in each item and choose the best answer from the given
options inside the
box. Write the complete word/ phrase on your test booklet.
Moral Suasion
Reserve Requirement
Rediscounting
Operations
Direct Controls
Monetary Policy
Speculative demand
Precautionary demand
Money
Banking System
Monopoly
Business Models
Cash Flow
Production Cost
Law of Supply
Law of Demand
Demand
Supply and demand
Exports
Government taxes
Savings
Leakages
Government
Businesses
Households
Factors of Production
Circular flow of economic activity
Pilipinas
Non-Bank Financial Institutions

Open Market
Transaction demand
Perfect competition
Profit
Supply
Imports
Injections
Prices
Bangko Sentral ng

1.
2.
3.
4.
5.
6.

A model showing the basic economic relationships within a market economy.

It illustrates the balance between injections and leakages in our economy.
Shows where money goes and what it's exchanged for.
Includes land, labor, capital and entrepreneurship
Correspond to these factors of production are rent, wages and profit
Buy goods and services from businesses in an attempt to satisfy their unlimited needs and
wants.
7. Sell goods and services to households, earning revenue and generating profits.
8. Levy taxes on households and businesses in order to provide certain benefits to everyone.
9. Into the economy include investment, government purchases and exports
10.Include savings, taxes and imports
11.Leaks out to borrowers as it goes through the banking system, and borrowers use the money
to buy goods and services, which then injects the money back into the circular flow.
12.Leak out of the circular flow model, and then government spending injects them back into the
economy.
13.Leak out of the economy because the money in our country that's used to buy imports from
other countries goes out of our economy and into their hands.
14.An injection because we earn income from the goods and services we export to other
countries.

15.One of the most fundamental concepts of economics and it is the backbone of a market
economy.
16.Refers to how much (quantity) of a product or service is desired by buyers.
17.The relationship between price and quantity demanded is known as
18.Represents how much the market can offer.
19.The correlation between price and how much of a good or service is supplied to the market is
known as
20.The higher the price of a good, the less people will demand that good.
21.The higher the price, the higher the quantity supplied.
22.Are expenses, such as materials and labor, that your company incurs in the course of
producing the product that you sell to consumers
23.The amount that your business ultimately earns, after subtracting expenses, such as
operating costs from gross revenue.
24.The amount of money that your company has available to cover its operations.
25.The way that your company generates revenue and earns money
26.A market structure in which there is only one producer/seller for a product.
27.Characterized by many buyers and sellers, many products that are similar in nature and, as a
result, many substitutes
28.Maintain price stability conducive to a balanced and sustainable economic growth.
29.Provides the policy direction in the areas of money, banking and credit
30.Supervises operations of the bank and exercises regulatory powers over no-bank financial
institutions with quasi-banking functions
31.Institutions include Universal Banks, Commercial Banks, Thrift Banks, Rural Banks,
Cooperative Banks, and Islamic Banks.
32.Refer to all financial institution other than banks engaged principally in the provisions of a
wide range of financial services
33.Include those performed by pawnshops, lending investor, stock brokers, money brokers,
investment houses, financing companies, insurance companies, and intermediaries
performing quasi banking functions
34.Fundamental in the functioning of the economy
35.Facilitates the exchange of goods and service and reduces the amount of time and effort to
carry out a trade transaction.
36.The transaction motives for demanding from the fact that most transactions involve an
exchange of money.
37.People often demand money as a precaution against an uncertain future.
38.Money is also a way for people to store wealth.
39.Measures or action by Central Bank to regulate the supply of money in the economy
40.Involves the buying and selling of government securities from banks and financial institutions
of the
BSP in order to expand or contract the supply of money.
41.This refers to transactions whereby the BSP extends credit to a bank collateralized by its loan
papers with customers.
42.This Instrument plays a dual role; as a tool to allocate credit to preferred sectors of the
economy and as an instrument to influence the supply of money and credit.
43.The interest rate charged by the BSP to the banks that borrow from them.
44.This is the minimum amount of reserves that bank must hold against deposits.
45.Help to control the money and credit by affecting the demand for money reserves and the
money multiplier.
46.It serves as a prudential safeguard for depositors
47.These consist of quantitative and qualitative limits on the ability of banks to undertake certain
activities.

48.Includes limitations on aggregate bank lending, selective limitations on certain types of

banks lending and interest rate regulations.
49.The BSP persuade banks to make their lending policies responsive to the needs of the
economy.
50.Banks must tighten their credit programs in times of inflation and loosen them in times of
recession.

Republic of the Philippines

CEBU TECHNOLOGICAL UNIVERSITY
Main Extension Campus
Bitoon, Dumanjug Cebu
Fax (032) 470-9298
MIDTERM EXAMINATION
in
CARPENTRY, MASONRY, PLUMBING
January 17- 22, 2017

LIFE is the most difficult exam. Many people fail because they try to copy
othersnot realizing that everyone has a different test paper.