explain financial system in the philippines in a way grade 12 students will understand and give exam

Sure! The financial system in the Philippines is like a big piggy bank where people and businesses save and borrow money. Just like how you save your allowance in a piggy bank, banks collect money from people and lend it to others who need it, like when your friend borrows money from you. In the Philippines, there are different types of financial institutions like banks, insurance companies, and stock markets. These institutions help people manage their money, invest in businesses, and protect themselves from risks like accidents or illnesses. One fact about the financial system in the Philippines is that the country’s central bank is called the Bangko Sentral ng Pilipinas (BSP), which regulates and supervises the banking industry to ensure stability and protect the interests of depositors. For example, if you want to buy a new toy but don’t have enough money saved up, you can borrow from a bank and pay them back with interest, just like how your parents might lend you money and ask for it back later. In a grade 12 exam about the financial system in the Philippines, you might be asked to explain how banks help people save money or how insurance companies protect individuals from financial losses. It’s important to understand these concepts because they play a big role in the economy and in our daily lives.