Презентация на тему: Central banking system and its functions

Central banking systemand its functions Manto AlexanderBudget and Treasury Academy in Moscow2009

Contents Definition Main functionsCurrency issuanceNaming of central banksMain policy instrumentsConclusion

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

Main functions controlling money supplymoney issuancesetting the official interest rateimplementing monetary policy

Currency issuance Exclusive privilege of a central bank

Examples of naming Bank of country National bank of Reserve bank of

Main policy instruments Open market operationsReserve require ratioDiscount 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 supplyTaken into account before starting business

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

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