Banking. Operations of the Central Bank of the Russian Federation on the open market (lecture notes)

Lecture notes, cheat sheets
Free library / Directory / Lecture notes, cheat sheets

Banking. Operations of the Central Bank of the Russian Federation on the open market (lecture notes)

Lecture notes, cheat sheets

Table of contents (expand)

Operations of the Central Bank of the Russian Federation on the open market

The Law on the Bank of Russia provides for the Central Bank to conduct operations on the open market. Article 39 states that open market operations mean the Bank's purchase and sale of treasury bills, government bonds and other government securities, short-term operations with securities with a later reverse transaction.

In countries with a developed securities market, the most common method of monetary regulation is open market operations that affect the activities of commercial banks through the amount of resources they have. If the central bank sells securities on the open market and commercial banks buy them, then the resources of the latter and, accordingly, their ability to provide loans to customers is reduced. This leads to a reduction in the money supply in circulation and an increase in the loan interest. By buying securities on the market from commercial banks, the central bank provides them with additional resources and expands their ability to issue loans. Open market operations contribute to the regulation of banking resources, interest rates and government securities.

To regulate short-term interest rates, central bank operations with bills of exchange (treasury and commercial) and short-term government bonds are traditionally used. Selling them limits the availability of the money market and leads to an increase in market interest rates. If the central bank does not want to allow an increase in the market rate of interest, then it provides support to banks by buying short-term securities and bills from them at current market rates.

The traditional means of regulating long-term interest rates are the operations of the central bank with long-term government obligations. The purchase of such obligations by the central bank causes their market price to rise (as a result, the demand for them increases). An increase in the price of bonds means a decrease in their actual yield, which is determined by the ratio of the amount of coupon income on a bond to its market rate. A decrease in the actual yield of long-term bonds leads to a decrease in long-term interest rates in the market. The sale of bonds by the central bank on the open market causes a fall in their price and an increase in bond yields, and hence long-term interest rates. In addition, the purchase and sale of securities affects interest rates through the expansion or restriction of bank cash.

Author: Shevchuk D.A.

<< Back: Refinancing of commercial banks by the Central Bank of the Russian Federation

>> Forward: The essence and purpose of the fund of required reserves of commercial banks in the Central Bank of the Russian Federation

We recommend interesting articles Section Lecture notes, cheat sheets:

▪ Legal psychology. Lecture notes

▪ pathological physiology. Crib

▪ Investments. Crib

See other articles Section Lecture notes, cheat sheets.

Read and write useful comments on this article.

<< Back

Latest news of science and technology, new electronics:

The existence of an entropy rule for quantum entanglement has been proven 09.05.2024

Quantum mechanics continues to amaze us with its mysterious phenomena and unexpected discoveries. Recently, Bartosz Regula from the RIKEN Center for Quantum Computing and Ludovico Lamy from the University of Amsterdam presented a new discovery that concerns quantum entanglement and its relation to entropy. Quantum entanglement plays an important role in modern quantum information science and technology. However, the complexity of its structure makes understanding and managing it challenging. Regulus and Lamy's discovery shows that quantum entanglement follows an entropy rule similar to that for classical systems. This discovery opens new perspectives in the field of quantum information science and technology, deepening our understanding of quantum entanglement and its connection to thermodynamics. The results of the study indicate the possibility of reversibility of entanglement transformations, which could greatly simplify their use in various quantum technologies. Opening a new rule ... >>

Mini air conditioner Sony Reon Pocket 5 09.05.2024

Summer is a time for relaxation and travel, but often the heat can turn this time into an unbearable torment. Meet a new product from Sony - the Reon Pocket 5 mini-air conditioner, which promises to make summer more comfortable for its users. Sony has introduced a unique device - the Reon Pocket 5 mini-conditioner, which provides body cooling on hot days. With it, users can enjoy coolness anytime, anywhere by simply wearing it around their neck. This mini air conditioner is equipped with automatic adjustment of operating modes, as well as temperature and humidity sensors. Thanks to innovative technologies, Reon Pocket 5 adjusts its operation depending on the user's activity and environmental conditions. Users can easily adjust the temperature using a dedicated mobile app connected via Bluetooth. Additionally, specially designed T-shirts and shorts are available for convenience, to which a mini air conditioner can be attached. The device can oh ... >>

Energy from space for Starship 08.05.2024

Producing solar energy in space is becoming more feasible with the advent of new technologies and the development of space programs. The head of the startup Virtus Solis shared his vision of using SpaceX's Starship to create orbital power plants capable of powering the Earth. Startup Virtus Solis has unveiled an ambitious project to create orbital power plants using SpaceX's Starship. This idea could significantly change the field of solar energy production, making it more accessible and cheaper. The core of the startup's plan is to reduce the cost of launching satellites into space using Starship. This technological breakthrough is expected to make solar energy production in space more competitive with traditional energy sources. Virtual Solis plans to build large photovoltaic panels in orbit, using Starship to deliver the necessary equipment. However, one of the key challenges ... >>

Random news from the Archive

Birds also have a cerebral cortex 05.10.2012

The cerebral cortex, the layered structure where the most complex information processing supposedly takes place, was thought to exist only in mammals. In humans, the new cortex - the neocortex - makes up the bulk of the cortex, while in lower mammals it is in its infancy. But a new study from the University of Chicago found that birds, too, have cells very similar to the neocortex, although they are anatomically very different from those of mammals.

A paper on a mysterious structure in the avian brain, published in the Proceedings of the National Academy of Sciences, confirms a long-standing hypothesis that has sparked debate for decades. The study sheds light on the evolution of the brain and opens up new models for studying the neocortex. "We used to be able to study cortical neurons only in mammals," says Dr. Clifton Ragsdale, assistant professor of microbiology at the University of Chicago. "Now we can use other objects for our experiments."

Both the mammalian neocortex and a similar structure in the avian brain called the DVR come from embryonic structures called the telencephalon. But while the neocortex is made up of six different layers of the cortex, the DVR contains large clusters of neurons called nuclei.

Neurophysiologist Harvey Karten suggested back in 1960 that the DVR performs the same function as the cerebral cortex, despite fundamental differences in anatomy. Now Dugas-Ford, Rugsdale and their co-author Joanna Rowell have tested this theory using newly discovered arrays of molecular markers. With their help, it is possible to identify individual layers of the cortex - for example, the "input" neurons of the 4th layer or the "output" of the 5th. The scientists then tested whether these markers are expressed in DVR nuclei. It turned out that even in bird species very distant from each other, all markers of levels 4 and 5 were expressed in certain nuclei, exactly where they should have been in the DVR, if we compare it with the cerebral cortex.

Further experiments should test the developmental stages that form these neurons in different structures, as well as the relative pros and cons of anatomical differences. But it is clear that such a structure in birds, like the cerebral cortex, is capable of supporting extended functions, and perhaps even providing advantages over mammals.

Other interesting news:

▪ The share of renewable energy sources is growing

▪ SLR camera Canon EOS 850D

▪ Worm blood transfusion to human

▪ Electronic locks for Godson processors

▪ The main scientific breakthrough of 2018

News feed of science and technology, new electronics

Interesting materials of the Free Technical Library:

▪ section of the website Experiments in Physics. Selection of articles

▪ article by Morgan Thomas. Biography of a scientist

▪ article Who lost the chance to become the leader of the state, wanting to visit Disneyland? Detailed answer

▪ article Traffic Safety Engineer. Job description

▪ article Overcurrent signaling device. Encyclopedia of radio electronics and electrical engineering

▪ article Active low-pass filter. Encyclopedia of radio electronics and electrical engineering

Leave your comment on this article:

All languages of this page

Home page | Library | Articles | Website map | Site Reviews