Money. Credit. Banks. Central banks, their functions and monetary regulation (lecture notes)

Free technical library

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

Money. Credit. Banks. Central banks, their functions and monetary regulation (lecture notes)

Lecture notes, cheat sheets

Directory / Lecture notes, cheat sheets

Comments on the article

Table of contents (expand)

Central banks, their functions and monetary regulation

Functions of the Central Bank

The Central Bank is a government body responsible for the volume of money supply and loans provided to the economy as a whole. Meaning: he is responsible for the conduct of monetary policy and the stability of the banking system as a whole. The standard is the Bank of England. The role of the Central Bank is determined by three functions:

1) monetary control (stabilization of the price level through control over the money supply);

2) Prudential control - control over banking risks (aimed at minimizing the possibility of financial crises). When conducting this type of control, the bank acts as a lender of last resort

3) placement of public debt on the most favorable terms - in this case, the Central Bank acts as an agent in the initial placement of bonds and is not a direct creditor of the government.

Creation and status of the Bank of Russia

In the Russian Federation, bank property is federal property. The state is not liable for the obligations of the Bank of Russia, and the Bank of Russia - for the obligations of the state, if they have not assumed such obligations. The Bank of Russia carries out its expenses at the expense of its income. The Bank of Russia simultaneously acts as a state body pursuing a policy in the financial sector, and as a bank - a subject of commercial activity. Is a monopolist in the issuing sphere. After the approval of the annual financial statements, the Bank of Russia transfers 50% of the actual profit to the federal budget. To fight inflation, the Central Bank must win the trust of the public and have a reputation as a body that strictly fulfills its obligations.

Organizational structure of the Bank of Russia

At present, the Bank of Russia is a single centralized system with a vertical management structure. The structure of the Bank of Russia includes the National Banking Council, the chairman of the Bank of Russia, the board of directors, the central office, territorial offices (TU), cash settlement centers (RCC), other organizations, including computer centers, field institutions, educational institutions

Functions of the Bank of Russia

The Bank of Russia carries out: - Maintenance of accounts of budgets of all levels of the budgetary system of the Russian Federation; - servicing the public debt; - interbank payments and settlements; - lends to solvent, but temporarily illiquid banks; - banking regulation and supervision; - endowed with a monopoly right to issue cash.

Balance sheet of the Bank of Russia

Asset: precious metals; funds and securities in foreign currency placed with non-residents; loans and deposits; securities; other assets - fixed assets.

Liabilities: cash in circulation; funds on accounts with the Bank of Russia; funds in settlements; other payments - IMF loan; capital.

Author: Shevchuk D.A.

<< Back: Theories of credit

>> Forward: Instruments and methods of monetary policy

We recommend interesting articles Section Lecture notes, cheat sheets:

▪ Inorganic chemistry. Crib

▪ Psychology of work. Crib

▪ Real estate economics. 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

Service for shared rides on self-driving vehicles 21.10.2019

In 2021, Panasonic plans to launch a ride-sharing service in small towns using small self-driving electric vehicles. This month, the manufacturer has already launched such a service at its headquarters in Osaka Prefecture. It is available to employees working here.

The electric vehicles travel along a route that is about 2,4 km long and takes them about 21 minutes to complete. The maximum speed of the electric vehicle is 20 km/h. The traffic schedule is flexible, determined by the needs of users, but the minimum traffic interval is only 10 minutes. The electric car has four seats.

Panasonic's automated driving system uses high-precision human recognition technology. If necessary, the electric vehicle can be operated manually - remotely or on site.

Panasonic expects such services to be rolled out to theme parks or venues for major events such as the 2025 Osaka World Expo.

Other interesting news:

▪ The secret of ancient wine

▪ The discovery made by pigeons

▪ Reusable rocket engine

▪ The car will not hit a pedestrian

▪ PHILIPS introduced its mirror TVs in Russia

News feed of science and technology, new electronics

Interesting materials of the Free Technical Library:

▪ section of the site Tools and mechanisms for agriculture. Article selection

▪ article by Ernst Junger. Famous aphorisms

▪ article Which lizards and in what period temporarily cease to be cold-blooded? Detailed answer

▪ article Plot. Travel Tips

▪ article Translation of drawings for engraving on metal surfaces. Simple recipes and tips

▪ article Obtaining carbon dioxide from lemonade or mineral water. Chemical experience

Leave your comment on this article:

All languages of this page

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