1. Last September 20, 2021 the market price of bangus was 110 per kilo. The next day the price rise to150 per kilo. Today, the price of bangus is 120 per kilo. Was there inflation?

a. Yes because the price rise from 110 to 15

b. No because the reason for the increase of price was not provided

c. Yes because the demand of bangus was higher than its supply

d. No because there was an apparent price reduction

2. During a live broadcast over ABS-GMA 5, one cabinet member mentioned that the price of pork is now pegged at 300 per kilo as compared to 200 per kilo last week. This is an example of.

a. Core inflation

b. Headline inflation

c. Price manipulation

d. Price control

3. One personnel from the Philippine Statistics Authority (PSA) claimed that for the month of December 2021, it is expected that the core inflation will be at 8% while headline inflation will be at 5%. What is the merit of this statement?

a. This is meritorious because this was dispensed by an authority

b. This is meritorious because the sharing of information was sanctioned by PSA

c. The statement is not meritorious because it is too early to tell

d. The statement is not meritorious because of its factual defect

4. During valentine's day, the prices of flowers are way above the normal market rate amidst the abundant supply of flowers. What is the reason for this?

a. There is no probable answer because flower is not a necessity

b. The supply of flowers becomes scarce due to pandemic

c. The willingness to buy is very high

d. Lovers love to smell the aroma of flowers

5. During December and May, so much money circulates in the economy. In order to counter its adverse effect, the government must issue

a. Expansionary monetary policy

b. Contractionary monetary policy

c. Expansionary fiscal policy

d. Contractionary fiscal policy

6. Based on the correct answer in number 5, what tools must be introduced?

a. Higher interest rates on savings and lower interest rates for borrowing

b. Lower interest rates on savings and higher interest rates for borrowing

c. Lower interest rates on savings and borrowings

d. Higher interest rates on savings and borrowing

7. In an economy where there is scarcity of money in circulation, the government must introduce.

a. Expansionary monetary policy

b. Contractionary monetary policy

c. Expansionary fiscal policy

d. Contractionary fiscal policy

8. Based on the correct answer in number, what tools must be introduced?

a. Higher interest rates on savings and lower interest rates for borrowing

b. Lower interest rates on savings and higher interest rates for borrowing

c. Lower interest rates on savings and borrowings

d. Higher interest rates on savings and borrowing

9. What is the entire concept behind the quantity theory of money?

a. The rich holds so much money

b. The poor holds so much credit

c. When money circulates, someone will siphon it

d. Your expenses become an income for others

10. H borrowed money from K with an interest of 10% upon full payment. The loan was executed in 2020 where inflation rate was 5%. Upon full payment, inflation rate was at 12%. All else constant, who gained from this transaction?

a. The government

b. The debtor

c. The creditor

d. The bank

11. What is the reason behind the correct answer in number 10?

a. The money has lower purchasing power at the execution of the loan

b. The money has higher purchasing power at the execution of the loan

c. The money has higher purchasing power during the full payment of the loan

d. All of the above

e. None of the above

12. Among all these transactions, please choose the one which offers benefits to the depositor.

a. C deposited his money thru Banco de Roro in 2010 (where inflation was at 5%) with an interest rate of 2% per annum. He withdraws the principal with interest a year after, and during this period, inflation rate was 8%.

b. Q deposited his money thru BankMetro in 2010 (where inflation was at 5%) with an interest of 3% per annum. He withdraws the principal with interest a year after, and during this period, inflation rate was at 8%.

c. R deposited her money thru Bank of Island Philippines with an interest rate of 1.5% per annum. She withdraws the principal with interest two years after. During the time of withdrawal, inflation rate was 4%, way lower than the past 2 years inflation rate

d. S saved her money to Blue Bank. The bank promised to let the money grow by 8% after 4 years. Upon maturity, the depositor withdraws the money with the promised interest. Further, it was found out that 4 years ago, inflation was 5% which worsen as time progress, up to the present.

13. What is the revenue or income out of printing money?

a. Thru the multiplier effect of money

b. The poor received so much money thru 4Ps

c. The rich possessed more money to spend

d. Government can pay its debts by just printing more money