Briefly discuss the following: 15 points See Rubrics. Exemplary: 5 pts; Proficient: 3 pts.; Incomplete: 1 pt

1. When BSP (Bangko Sentral ng Pilipinas) Increases the reserve requirements of banks, what is the effect to the money supply and interest rates? 5 points 2. When the government works on increasing money supply, what is the effect in the interest rates and the prices of the securities? 5 points 3. When BSP lowers the discount rates that banks pay when availing short term loans, what is the effect to the money supply? 5 points