BUSINESS AND HOSPITALITY MANAGEMENT DEPARTMENT

COURSE SYLLABUS

A globally competitive institution, faithful to the teachings and tradition of the Catholic Church working
VISION towards the development of the person following the examples of St. Arnold Janssen and St. Joseph
Freinademetz.

To develop and enhance the capabilities of the person to become responsive to the demands of the society
MISSION
with respect for cultural preservation.

To intensify quality education, that produces globally competitive professionals who will become
catalysts of change.
To promote the preservation of cultural diversity and heritage.
GOALS
To develop versatile individuals in the areas of instruction, research and community extension services.
To promote morally upright individuals who respond and adopt to the fast changing demands of society,
guided by Catholic values, inspired by the example of Sts. Arnold Janssen and Joseph Freinademetz.

CORE
Integrity, Social Responsibility, Excellence, Evangelization
VALUES
Course Title MONETARY POLICY AND CENTRAL BANKING
Course Code Finance 6
School Year
and 2017-2018, 2nd Semester
Semester

CLAUDETTE G. SIM
Faculty email ad : [email protected]
contact number : 0939 635 3705

Course Pre-
Basic Finance (Finance 1)
Requisites

This course is consists of two parts. Part one gives the students an introduction / overview of money,
Course
inflation, interest rates and output, financial system and financial instruments. The second part will cover
Description
Central Banking and the operation of the Monetary Board.

1. Explain the key concepts in monetary policies and their relationship with the key economic variables.
Course 2. Present and discuss a number of issues related to money, banking, government revenues and
Objectives expenditures.
3. Make students understand central banking and realize the social implications of monetary policies.
 1. Make sound business decisions from a set of alternative courses of actions by applying
quantitative techniques.
Course
2. Perform business activities efficiently and effectively using knowledge in banking
Learning operation.
Outcomes 3. Collaborate with colleagues, practitioners, clients, policy-makers, interest groups and the
public in order to enrich the understanding of the Monetary Policy and Central Banking

Session Instructional
Number (by Course Learning Outcomes Topic/Content Delivery/Strategies/ Assessment
week) Activities

VMGC
Discussion in relation to the
course

OVERVIEW OF
PHILIPPINE FINANCIAL
SYSTEM

a. Financial System
b. Financial Intermediation
4. Make sound business Economic Role
decisions from a set of
Risk and Cost
alternative courses of
Uses and Sources
actions by applying
quantitative techniques. c. Five Core Principles of
Money and Banking
5. Perform business
activities efficiently and Time has value.
effectively using Risk requires
knowledge in banking compensation.
1st 4th week operation. Information is the
6. Collaborate with basis for decisions.
colleagues, practitioners, Markets set prices
clients, policy-makers, and allocate
interest groups and the resources.
public in order to enrich d. Five Parts of Financial Concept Map,
the understanding of the System Illustration of the
Money Concept Mapping;
Monetary Policy and Old Coins and
Financial Interactive Discussion;
Central Banking Bills; First
Instruments Collecting old Coins and
Preliminary
Financial Markets Bills
Examination
Financial Institutions
Central Banks

MONEY IN THE
NATIONS ECONOMY

a. Development of
Monetary System
b. Evolution of Money
 c. Significance of Money
d. Function of Money
e. Attributes of Good
Money
f. Coinage
g. Kind of Coinage
h. Detecting Counterfeited
Bills

MONETARY
STANDARDS AND
SYSTEM

a. Nature of Monetary
Standard
b. Classification of
Monetary Standard
Commodity
Standard (Metallic
Standard)
- Monometallic
Standard (Gold &
Silver Standard)
- Gold Coin Standard
- Gold Bullion
Standard
- Gold Exchange
Standard
(Classification,
Characteristics, Participative Discussion; The Paper
5th 9th week Advantages, Paper Mache of Mache
Disadvantages) Commodity Standard (Commodity and
- Bimetallic Standard and Non-Commodity Non-Commodity
(Bimetallism, Standard; Clippings of Standard);
Market Ratio, Philippine Bank Notes Clippings of
Advantages,
and Philippine Monetary Philippine Bank
Disadvantages)
Policies Notes and
Non-Commodity
Standard (Fiat Philippine
Standard) Monetary Policies
- Characteristics, Mid-term
Types of Fiat Examination
Standard)
- Managed Currency
Standard
(Characteristics,
Objectives,
Advantages,
Disadvantages)
 HISTORY OF PHILIPPINE
CURRENCY

a. Pre-Spanish Time
b. Spanish Regime
c. First Philippine Republic
d. American Regime
e. Dollar Exchange
Standard
f. Philippine Bank Notes
g. Japanese Regime
h. Post War Period
i. Outline of the History of
the Philippine Monetary
System

PHILIPPINE MONETARY
POLICY

a. Monetary Policy and its

Objectives
b. Advantages
c. Limitations
d. Monetary & Banking
Policy
e. Fiscal Policy
f. Fiscal Functions
g. Coordinating Fiscal and
Monetary Policy

CENTRAL BANKING AND

THE EFFECTS OF ITS
MONETARY POLICIES IN
OUR ECONOMY

a. The Old Monetary

Board
b. The New Central Bank
c. Composition and
Qualifications of the
10th 14th New Monetary Board
week d. Bangko Sentral as Bank
of Issue
e. Bangko Sentral as
Lender of the Last
Resort
f. Domestic Monetary
Stabilization
g. Instruments of Central
Bank Actions
h. Legal Bank Reserve
Requirements
i. Purpose of Imposing
 Legal Bank Reserves
j. Laws Covering Legal
Bank Reserves (RA
7653, Sec. 96-102)
k. Bank Legal Reserve
Requirements and its
Effect on Excess
Reserves and Money
Supply
l. Changing Reserve
Requirements
m. Control of Discount and Group Discussion; Compilation of
Rediscount Rates of Compilation of Monetary Monetary Policies
Loan Policies Resolved Resolved Cases /
n. Interest and Rediscount Cases / Issues ; Issues ; Narrative
Rates (RA 7653, Sec. Academic Tour in Report of the
85) Bangko Sentral ng Academic Tour;
o. Changing Discount
Pilipinas (BSP) Pre-Final
Rates and Its Effect on
Banks Excess Reserve Examination
and Money Supply
p. Open Market Operation
in Government
Securities
q. Purchases and Sales in
Government Securities
(RA 7653, Sec. 91)
r. Issue and Negotiation
of Bangko Sentral
Obligations (RA 7653,
Sec. 92)
s. Open Market Operation
and its Effect on Banks
Excess Reserves and
Money Supply
t. Control of Collaterals
Required on Bank
Loans (RA 7653, Sec.
106)
u. Imposition of Portfolio
Ceiling
v. Portfolio Ceiling ((RA
7653, Sec. 107)
w. Minimum Capital Ratio
x. Margin Requirements
against Letter of Credit
(RA 7653, Sec. 105)
y. Moral Suasion
z. Other Monetary Policies
to Stabilize Banking
Operations
 THE FED AND ITS
MONETARY POLICY

a. Functions of the Fed,

Overview
b. Organizational
Structure of the Fed
c. How the Fed Controls Comparative
Collaborative
Money Supply Analysis of
Discussion;
d. The Feds Intervention Philippine and
15th - 18th Comparative Analysis of
during the Credit Crisis Fed Monetary
week e. Global Monetary Policy Philippine and Fed
Policies and
f. Mechanics of Monetary Monetary Policies and
Practices; Final
Policy Practices
Examination
g. Implementing Monetary
Policy
h. Trade-Off in Monetary
Policy
i. Monitoring the Impact of
Monetary Policy
j. Global Monetary Policy

Course References:

Madura, Jeff; FINANCIAL MARKETS AND INSTITUTIONS 11th EDITION, CENGAGE Learning; 2015; Canada
Laman, Rose Marie B.; Laman, Vincent Patrick B.; Evia, Emiliana P.; FINANCIAL SYSTEMS, MARKETS AND
MANAGEMENT-THE BASICS, GIC Enterprises & Co. Inc; 2015; Manila, Philippines
Keowon, A; Martin J.; Petty, W. (2015). FOUNDATIONS OF FINANCE-THE LOGIC AND PRACTICE OF
FINANCIAL MANAGEMENT EIGHT EDITION. Singapore : Pearson
Ceccheti, Stephen G.; MONEY, BANKING AND FINANCIAL MARKET 4th EDITION, The McGraw-Hill Companies,
Inc.; 2015; New York
Pagoso, Cristobal M.; MONEY, CREDIT AND BANKING 1ST EDITION; Rex Bookstore, Inc; 2010; Manila
Sauders, Anthony and Cornett, Marcia Millon, FINANCIAL MARKETS AND INSTITUTIONS 4TH EDITION; The
McGraw-Hill Companies, Inc.; 2010; New York

Additional Supplementary Materials:

www.bsp.com.ph

Course Requirements:

Attendance, Assignments, Concept Map, Illustration of the Old Coins and Bills; The Paper Mache (Commodity and Non-
Commodity Standard); Clippings of Philippine Bank Notes and Philippine Monetary Policies; Compilation of Monetary Policies
Resolved Cases / Issues ; Narrative Report of the Academic Tour; Comparative Analysis of Philippine and Fed Monetary
Policies and Practices; Chapter Quizzes, Major Examinations
Course Policies:

1. Students are allowed 11 absences for MWF classes and 7 for TTh classes inclusive of tardiness. Excessive absences shall
result to a grade of FA (Failure due to absences).
2. Students are required to use the college library for topic researches.
3. Using of cellular or mobile phones are not allowed during class hours. It should be in silent mode.
4. Honesty is the rule during examination. Cheating is not allowed at all times. It will merit a grade of zero (0).
5. Non-reporting and/or non-compliance to the different Course Requirements such as Concept Map, Illustration of the Old
Coins and Bills; The Paper Mache (Commodity and Non-Commodity Standard); Clippings of Philippine Bank
Notes and Philippine Monetary Policies; Compilation of Monetary Policies Resolved Cases / Issues; Narrative
Report of the Academic Tour; Comparative Analysis of Philippine and Fed Monetary Policies and Practices; It will
merit a grade of zero (0) or incomplete.
6. Any complaints regarding teaching, grades, etc. against the teacher or classmates related to the course should be properly
addressed to the professor.
7. No permit no examination.

Grading System:

Preliminary Examination 10%

Mid-term Examination 20%
Pre-Final Examination 10%
Final Examination 20%
Class Standing 40%
Total 100%

Class Standing includes attendance, assignments or/and projects, individual & group presentations, recitation and
class participation

MWF 1:00 - 2:00 ; 4:00 5:00

Consultation Period
TTh 4:00 5:00

ASSESSMENT
COURSE PERFORMANCE EVIDENCES OF PERFORMANCE
OUTCOMES INDICATORS PERFORMANCE STANDARD

1. Make sound business Following a set of rubrics,

decisions from a set of students are expected to
alternative courses of accomplish and/or present
actions by applying Concept Map, Illustration of the following:
quantitative techniques. 100% of compliance for
the Old Coins and Bills; The
2. Perform business all the performance
Paper Mache (Commodity and Concept Map, Illustration of
activities efficiently and indicators
effectively using
Non-Commodity Standard); the Old Coins and Bills; The
Clippings of Philippine Bank Paper Mache (Commodity
knowledge in banking 75% passing
operation. Notes and Philippine Monetary and Non-Commodity
percentage in major
3. Collaborate with Policies; Compilation of Standard); Clippings of
examinations
colleagues, practitioners, Monetary Policies Resolved Philippine Bank Notes and
clients, policy-makers, Cases / Issues ; Narrative Philippine Monetary
interest groups and the Report of the Academic Tour; Policies; Compilation of
public in order to enrich Comparative Analysis of Monetary Policies Resolved
the understanding of the Philippine and Fed Monetary Cases / Issues ; Narrative
Monetary Policy and Policies and Practices; Report of the Academic
Central Banking. Chapter Quizzes, Major Tour; Comparative Analysis
Examinations of Philippine and Fed
Monetary Policies and
Practices; Chapter Quizzes,
Major Examinations

Prepared by:

MS. CLAUDETTE G. SIM

Faculty

Noted by:

PROF. FEDERICO A. CABAILO, JR. PhDBM

Department Program Coordinator

PROF. SHIRLEY I. MENDOZA, PhD. AMEd, DBE

Department Dean

Approved by:

DR. ALELI C. DUGAN, CPA

Vice President for Academic Affairs