Konsepto Ng Patakarang Pananalapi

The correct answer is Expansionary Money Policy. The given statement suggests that the stock market is sluggish or weak due to a global economic crisis. In such a situation, expansionary monetary policy can be implemented by the central bank to stimulate economic growth. This policy involves increasing the money supply, lowering interest rates, and encouraging borrowing and spending. By injecting more money into the economy, businesses can access capital more easily, leading to increased investments and potentially improving the performance of the stock market.

The given statement states that many companies closed down due to losses and low sales. In this context, an expansionary money policy can be seen as a possible explanation for the situation. Expansionary money policy refers to a monetary policy where the central bank increases the money supply in the economy, usually by lowering interest rates and implementing other measures to stimulate economic growth. This policy can lead to increased borrowing and spending, which may benefit some companies. However, if these companies were unable to take advantage of the expansionary policy or if the policy was not effective in stimulating the overall economy, they may still have faced losses and low sales, resulting in their closure.

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The increase in dollar remittances from overseas Filipino workers (OFWs) suggests a higher inflow of foreign currency into the country. A contractionary money policy aims to reduce the money supply in the economy to control inflation. By implementing measures such as increasing interest rates or reducing government spending, the central bank can decrease the amount of money circulating in the economy. This policy can be effective in managing inflationary pressures that may arise from an increase in foreign currency inflows, making it the correct answer in this context.

The given statement suggests that due to the war, many Overseas Filipino workers (OFWs) returned home without saving any money. The correct answer, "Expansionary Money Policy," does not directly relate to the statement. An expansionary money policy refers to a monetary policy that aims to stimulate economic growth by increasing the money supply and lowering interest rates. This policy is typically implemented by central banks to encourage borrowing and spending. However, there is no direct connection between the expansionary money policy and the situation of OFWs returning home without savings.