SCHOOL OF BUSINESS ADMINISTRATION AND ACCOUNTANCY

General Luna Road, Baguio City Philippines 2600

Telefax No.: (074) 442-3071 Website: www.ubaguio.edu E-mail Address: ub@ubaguio.edu

MONETARY POLICY & CENTRAL BANKING

FINMGT2
COURSE SYLLABUS
1st Semester SY 2012 - 2013

UB VISION

In pursuit of perfection, the University of Baguio is committed to provide balanced quality education by nurturing academic excellence, relevant
social skills and ethical values in a fun-learning environment.

SCHOOL OF BUSINESS ADMINISTRATION AND ACCOUNTANCY MISSION

The University of Baguio educates individuals to be empowered professionals in a global community.

The School of Business Administration and Accountancy edifies competitive and morally upright individuals.

OBJECTIVES

The School of Business Administration and Accountancy, in an exuberant learning climate, aims to nurture a business graduate who:

1. cultivates the knowledge, that are imperative for career success in a globalized setting;
2. demonstrates relevant skills;
3. utilizes macro-environmental acumen for economic growth and development;
4. typifies professional integrity with humility;
5. undertakes researches to promote systematic bases for business decisions; and
6. models exemplary performance in business.
 SCHOOL OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
General Luna Road, Baguio City Philippines 2600

Telefax No.: (074) 442-3071 Website: www.ubaguio.edu E-mail Address: ub@ubaguio.edu

OBJECTIVES UNIVERSITY GOALS

The School of Business Administration and Accountancy, in an exuberant learning climate, aims to nurture a 1 2 3 4 5
business graduate who:
P1. cultivates the knowledge, that are imperative for career success in a globalized setting; / / / / /
P2. demonstrates relevant skills; / / / / /
P3. utilizes macro-environmental acumen for economic growth and development; / / / / /
P4. typifies professional integrity with humility; / / / / /
P5. undertakes researches to promote systematic bases for business decisions; and / / / / /
P6. models exemplary performance in business. / / / / /

Program Outcome and Relationship to School/Program Objectives SCHOOL PROGRAM/OBJECTIVES

1 2 3 4 5
Program Outcome

O1. Students graduate to become professional imbued with high moral/ethical standards / / / /
O2. Graduates are highly competitive with the acquired knowledge, skills and values in the practice of their / / /
profession.
O3. Graduates are confident with their academic and industry preparations and the entry competencies learned to / / /
tackle the rigors of the business world.
O4. Students carry out researches that can be utilized in the community and in the business profession. / /
O5. Students recognize their responsibility and accountability as professionals and as workers in the community / /
O6. Students become aware of and strive for their physical, mental and spiritual well-being. /
O7. Students are prepared to meet the needs and demands of global employment without losing the Filipino spirit. / / /
O8. Students become aware of their responsibility to the environment and participate actively in environment / / / /
programs.
 SCHOOL OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
General Luna Road, Baguio City Philippines 2600

Telefax No.: (074) 442-3071 Website: www.ubaguio.edu E-mail Address: ub@ubaguio.edu

Course Objectives and Relationship to Program Outcome SCHOOL PROGRAM/OBJECTIVES

1 2 3 4 5
Course Objectives

Cognitive Domain
C1. Differentiate the different kinds of monetary standards. / / / / /
C2. Identify the functions, kinds and features of money. / / / / /
C3. Discuss the importance of the Philippine monetary policy to its economy. / / / / /
C4. Identify the importance of central banking to the financial system / / / / /
C5. Discuss how the Central Bank regulate and supervise financial institutions. / / / / /
C6. Explain the contributions of the central bank in socio-economic development. / / / / /
Affective Domain
C7. Manifest sustained interest in course topics and discussions. / / / / /
C8. Show enthusiasm in researching, reporting and sharing ideas in class. / / / / /
C9. Exhibit cooperation in group dynamics, research and reports / / / / /
C10. Exude improved confidence in interactions with people communication skills. / / / / /
Psychomotor Domain
C11. Prepare short research papers regarding the different kinds of monetary standards & policies. / / / / /
C12. Post validate recommendations as solutions to cases and current issues in the Philippine monetary system. / / / / /
C13. Make a comparison as to the similarities and differences of the different central banks in the world. / / / / /
C14. Accomplish a comprehensive written report about the tour/visit at Bangko Sentral ng Pilipinas. / / / / /
 SCHOOL OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
General Luna Road, Baguio City Philippines 2600

Telefax No.: (074) 442-3071 Website: www.ubaguio.edu E-mail Address: ub@ubaguio.edu

I. Course Number: FINMGT2

II. Title: Monetary Policy & Central Banking
III. Units: Three (3) units
IV. Pre-requisite: AFINAN1
V. Course Description:

This course is designed with two parts, the monetary system and central banking. It is designed to develop an understanding on how the economy and the
financial system are being affected by the different monetary policies. Under this, an overview on the importance of money, money creation, barter, payments,
monetary standards, Philippine peso, demand and supply of money are discussed. Central banking covers its development, importance, functions, operations and
also central banking outside the Philippines. Important parts of the New Central Bank act are also mentioned in the course.

Methodology/ Activities:
1. Lecture – discussion
2. Quizzes
3. Assignments
4. Periodical Examinations
5. Group Dynamics
6. Case Analyses

VI. Requirements
1. Regular and punctual attendance
2. Quizzes, assignments, periodical examinations
3. Reports
4. Reaction papers
5. Self-assessment exercise
6. Notebook
7. Research
 SCHOOL OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
General Luna Road, Baguio City Philippines 2600

Telefax No.: (074) 442-3071 Website: www.ubaguio.edu E-mail Address: ub@ubaguio.edu

VII. Course Coverage
No. Activity & Learning
Learning Contents/Topics of School Objectives Program Outcome Approach Evaluation
Hours
Course Syllabus 1 P1 P2 P3 P4 P5 P6 O1 O2 O3 O4 O5 O6 O7 O8 Orientation
VMO Internalize the VMO
Seat Plan Arrange students
Leveling of Expectations Requirements and
Grading system
FIRST GRADING
Part 1 – Money in the Nation’s Economy
1. Money and its Evolution Lecture
1.1. Origin of Money 7 / / / / / / / / / / / / / / Class Discussion Recitation
1.2. Functions of Money Reading Quiz
1.3. Features of Good Money Power point Group Output
1.4. Kinds of Money presentation Assignment
1.5. Managed Currency Assignment
1.6. Different types of Money used in
the Philippines
2. Monetary Standard Lecture
2.1. Definition of Monetary Standard Class Discussion
2.2. Classification of Monetary 4 / / / / / / / / / / / / / / Reading Recitation
Standards Power point Quiz
2.2.1. Commodity standards presentation Group Output
2.2.2. Non-commodity standards Assignment Assignment
3. Monetary System Lecture
3.1. Pre-Spanish Period Class Discussion
3.2. Spanish Period 4 / / / / / / / / / / / / / / Reading Recitation
3.3. Japanese Period Power point Quiz
3.4. American Period presentation Group Output
3.5. Phil. Managed Currency System Assignment Assignment
3.6. Inflationary period of martial law
3.7. Current Issues
 SCHOOL OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
General Luna Road, Baguio City Philippines 2600

Telefax No.: (074) 442-3071 Website: www.ubaguio.edu E-mail Address: ub@ubaguio.edu

MIDTERM GRADING PERIOD
4. Philippine Monetary Policy
4.1. Monetary Policy & its Objectives
4.2. Advantages 6 / / / / / / / / / / / / / / Lecture Recitation
4.3. Limitations Class Discussion Quiz
4.4. Monetary & Banking Policy Reading Group Output
4.5. Fiscal Policy Power point Assignment
4.6. Fiscal Functions presentation
4.7. Coordinating Fiscal & Monetary Assignment
policy
Part 11 – Banking Institutions
5. Central Banking: Development &
Growth 6 / / / / / / / / / / / / / / Lecture Recitation
5.1. Nature of Central Banking Class Discussion Quiz
5.2. Central banking defined Reading Group Output
5.3. Origin of Central Bank Power point Assignment
5.4. Operations of New Central banks presentation
5.5. The Bangko Central and the Assignment
economy
5.6. The Bangko Central ng Pilipinas
5.7. Brief history of BSP
5.8. Objective & Responsibilities of
BSP
6. Central Banking Authority
6.1. The Monetary Board
6.2. Board Membership Evaluation 5 / / / / / / / / / / / / / / Lecture Recitation
6.3. Powers of the Monetary Board Class Discussion Quiz
6.4. Powers & Duties of the Governor Reading Group Output
6.5. Domestic Monetary Policy Power point Assignment
6.6. International Monetary Stability presentation
6.7. Present Officers of the BSP Assignment
 SCHOOL OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
General Luna Road, Baguio City Philippines 2600

Telefax No.: (074) 442-3071 Website: www.ubaguio.edu E-mail Address: ub@ubaguio.edu

FINAL GRADING PERIOD
7. Functions & Operations of the Bangko
Sentral
7.1. Characteristics of Central Banks 3 / / / / / / / / / / / / / / Lecture Recitation
7.2. Functions of Central Banks Class Discussion Quiz
7.3. Monetary tools Reading Group Output
7.4. Activities of the Central Banks Power point Assignment
7.5. The Banko Sentral and Industrial presentation
Development Assignment
7.6. The CBP Coordinates with
International Institutions
7.7. Credit Operations
7.8. The Security Plant Complex of
BSP
7.9. Gold & Silver Plant Reserve
Management
8. Regulations & Supervisions of Financial
Institutions
8.1. Bangko Sentral Non-bank 5 / / / / / / / / / / / / / / Lecture Recitation
Financial Servises the Banking Class Discussion Quiz
Institutions Reading Group Output
8.2. Bangko Sentral Regulates Non- Power point Assignment
bank Financial Institutions presentation
8.3. Supervision & Regulation Assignment
Distinguished
8.4. Types of Examinations
8.5. Purpose of Supervision and
Regulations
8.6. Effectiveness of Supervision and
Regulation
8.7. Benefits of Bank Supervision
9. The Role of IMF in Central Banking Lecture
9.1. Organizational Structure Class Discussion
9.2. IMF Objective 5 / / / / / / / / / / / / / / Reading Recitation
9.3. Quotas of IMF Members Power point Quiz
 SCHOOL OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
General Luna Road, Baguio City Philippines 2600

Telefax No.: (074) 442-3071 Website: www.ubaguio.edu E-mail Address: ub@ubaguio.edu

9.4. Normal Facilities of IMF presentation Group Output
9.5. IMF Special Facilities Assignment Assignment
9.6. IMF Conditionality
10. Central Banking for Socio-Economic
development
10.1. The Right to Development 5 / / / / / / / / / / / / / / Lecture Recitation
10.2. Two different Worlds Class Discussion Quiz
10.3. The Promotion of Human Dignity Reading Group Output
10.4. Deprivation of the rural poor Power point Assignment
10.5. The miseries of the urban poor presentation
10.6. The Social Responsibility of Assignment
Central Bank

Grading System:

For Professional Subjects: the cut-off score is 70%. The highest possible grade is ninety-nine (99); the lowest passing grade is seventy-five (75); and the lowest
failing grade is sixty-five (65).
First grading Class standing = 70 % ; Exam = 30 %
Midterms Class standing = 60 % ; Exam = 40 %
( Tentative Midterm Grade x 2 + First Grading ) / 3 = Midterm Grade
Finals Class standing = 60 % ; Exam = 40 %
( Tentative Final Grade x 2 + Midterm Grade ) / 3 = Final grade

Textbook and References:

References:
Books
Burton & Lombra. (2004) The Financial System & the Economy: Principles of Money & Banking . 3rd Ed. USA: Thomson Southwest.
Cecchetti, S. (2006) Money, Banking & Financial Markets. NY: McGraw-Hill Irwin.
Miller, R. et.al. (2007) Money, Banking, Financial Markets. 3rd Ed. USA: Thomson South-
Western.
Miranda, Gregorio S. (2004) Money, Credit & Banking.. Manila: L&G Enterprises.
Valdez, . et.al. (2003) An Introduction to Global Financial Markets. 4th Ed. New York: Palgrave MacMillan
 SCHOOL OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
General Luna Road, Baguio City Philippines 2600

Telefax No.: (074) 442-3071 Website: www.ubaguio.edu E-mail Address: ub@ubaguio.edu

Internet
www.bsp.gov.ph
www.imf.org

Prepared by:

Olga Grace B. Dumo, MBA

Faculty, School of Business Administration and Accountancy
May 31, 2012

Noted by:

Syllabus Evaluation Committee:

Ruby R.Buccat, MBA

Program Chair – Business Administration (OM / HRDM / MM, FM)

Kareen B. Leon, CPA, MSBA

Dean, School of Business Administration and Accountancy