p.4
Distinction between Commodity and Fiat Money
How does money serve as a standard of deferred payment?
It allows for the settlement of debts over time.
p.4
Distinction between Commodity and Fiat Money
What does legal tender mean?
It refers to paper currency accepted in exchange for goods and services and required by the government for tax payments.
p.2
Importance and Functionality of Checks
What is the importance of checks in the payments system?
Checks provide a secure method for transferring funds without the need for cash.
p.6
Efficiency and Speed in Payment Processing
What does increasing efficiency in the payment system allow?
It allows the system to function using fewer workers and resources, benefiting the economy.
p.7
Desirable Outcomes of a Payments System
What does effective collaboration among participants ensure?
Smooth transfers of funds in transactions.
p.5
Importance and Functionality of Checks
What does the bank do after a check is cleared?
It determines if the check is sufficiently funded against the issuer's account.
p.7
Desirable Outcomes of a Payments System
How can smooth international transactions be facilitated?
By making payments quickly and conveniently.
p.4
Distinction between Commodity and Fiat Money
What is commodity money?
A good used as money that has value independent of its use as money.
p.8
Technological Innovations in Payment Methods
What technology allows consumers to make payments by waving their phone or watch?
Apple Pay and Android Pay.
p.6
Evolution of the Payments System
Who supervises the payment system in the Philippines?
The Bangko Sentral ng Pilipinas (BSP).
p.6
Desirable Outcomes of a Payments System
Why is security important in the payment system?
It increases confidence that funds will not be stolen electronically.
p.6
Efficiency and Speed in Payment Processing
How does speed in payment processing benefit transactions?
It facilitates faster transactions for both households and businesses.
p.2
Distinction between Commodity and Fiat Money
What is the primary distinction between commodity and fiat money?
Commodity money has intrinsic value, while fiat money has value by government decree.
p.2
Desirable Outcomes of a Payments System
What are some desirable outcomes of a payments system?
Efficiency, security, accessibility, and cost-effectiveness.
p.8
Usage of ATMs by Bank Clients
How do debit cards function in retail transactions?
They can be used like checks, instantly crediting the store's account and deducting from the user's account.
p.7
Desirable Outcomes of a Payments System
What is another desirable outcome for a payment system?
Effective collaboration among participants in the system.
p.4
Distinction between Commodity and Fiat Money
Why do people accept paper currency?
Because it is recognized as legal tender.
p.4
Distinction between Commodity and Fiat Money
What are the two main functions of money in facilitating exchange?
Providing a medium of exchange and serving as a unit of account.
p.5
Importance and Functionality of Checks
When did the use of checks become a major innovation in the payments system?
In the early 20th century.
p.3
Evolution of the Payments System
How has the payments system evolved over time?
From gold and silver coins to paper currency, checks, and electronic fund transfers.
p.3
Evolution of the Payments System
What is one modern method of payment in the payments system?
Electronic fund transfers.
p.2
New Peso Real-Time Gross Settlement Platform
What is the new peso real-time gross settlement platform?
It is the next generation Philippine Payment and Settlement System designed for efficient transactions.
p.5
Importance and Functionality of Checks
What must happen to checks before they can be processed?
They need to be cleared and pass through the Philippine Clearing House (PCHC).
p.3
Evolution of the Payments System
What is the primary function of money in the economy?
To facilitate transactions.
p.7
Desirable Outcomes of a Payments System
What is one desirable outcome for a payment system according to the BSP?
Smooth international transactions.
p.2
Usage of ATMs by Bank Clients
How can a bank client use an ATM?
By inserting their card, entering a PIN, and selecting transactions like withdrawals or deposits.
p.7
Desirable Outcomes of a Payments System
Who are the participants involved in the payment system?
The government, financial firms like banks, and other businesses around the world.
p.4
Distinction between Commodity and Fiat Money
What is fiat money?
Money that includes paper currency with no value apart from its use as money.
p.8
Evolution of the Payments System
What significant change has occurred in banking over the past 40 years?
The introduction of ATM machines, allowing convenient banking transactions.
p.5
Importance and Functionality of Checks
What are checks considered in the context of payments?
Promises to pay on demand money deposited with a bank or financial institution.
p.5
Importance and Functionality of Checks
What are the advantages of using checks?
They are safe to carry and convenient for settling transactions.
p.8
Efficiency and Speed in Payment Processing
What are Automated Clearing House (ACH) transactions used for?
Direct deposits of payroll checks and electronic payments for loans and mortgages.
p.8
Desirable Outcomes of a Payments System
What happens when a debit card is swiped at a supermarket?
The bank credits the store's account instantly and deducts the amount from the user's account.
p.5
Importance and Functionality of Checks
What is a disadvantage of using checks compared to currency?
Settling transactions with checks requires more steps.
p.2
Role of E-Money, Bitcoin, and Blockchain
How are e-money, bitcoin, and blockchain utilized in the payments system?
They facilitate digital transactions, enhance security, and provide decentralized payment options.
