Презентация на тему: Central banking system and its functions

Central banking system and its functions

Contents Definition Main functions Currency issuance Naming of central banks Main policy instruments Conclusion

Central bank Monetary authority of a country granted the exclusive privilege to lend a government its currency.

Main functions controlling money supply money issuance setting the official interest rate implementing monetary policy

Currency issuance Exclusive privilege of a central bank

Examples of naming

Main policy instruments Open market operations Reserve require ratio Discount rate policy

Open market operations Do not require the immediate printing of new currency Most frequently used tool of central bank

Required reserve ratio

Discount rate policy Affect the balance between demand and supply Taken into account before starting business

Conclusion Central bank system becomes the most important mean of economy policy in crisis period

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