33. If you want to trade the stock market to go through what procedures?
(1) creation of shareholder accounts and capital accounts. Under the current law, each investor wishing to engage in securities transactions, the company must first apply to the securities registration open shareholders account for shareholders code card. In addition, investors to purchase or sell shares, you must also apply to specific securities companies to open capital accounts, deposit the required funds transactions.
(2) to purchase or sell. investors opened a account and capital account after the stock can be commissioned in the securities trading business department. The whole process is: declaration to the securities investor r securities traders in the pit by their client's instructions to enter the securities business computer terminal field r directives issued in conjunction with traders enter the Exchange host computer by the host after the deal brokered transactions r investors for securities agent list, delivery and transfer procedures.
(3) auction transactions. receipt of investment securities person's trading commission, shall immediately notify its floor traders to declare the auction. securities trading by price priority and time priority principle of auction closing.
(4) clearing, settlement and transfer. liquidation is the buyers and sellers in the securities securities Exchange trading of securities transactions conducted after the securities through the Stock Exchange will be traded between the number and amount to be offset, respectively, due from securities and calculate the amount due from a program. delivery is the seller will sell the securities the securities delivered to the buyer, the buyer will buy the securities act of the seller to deliver the purchase price. transfer refers to the division of securities trading, after closing for the shareholders to change the registration procedures, the original owner of the securities transferred to the new owner of record of all the rights procedures.
34. fundraiser how to choose the way of issuing securities?
(1) securities issued in different ways with different characteristics. private placement is relatively simple procedure can save the cost of issue, do not disclose their internal information or to obtain credit level, but the private placement to provide a more generous compensation issue, and vulnerable to the intervention of the subscribers, and generally does not permit private securities traded, and therefore less liquid securities; public offering were issued in the stock market can improve the visibility of the issuer, expand its social impact, and in a short period of time to raise a lot of money, but the issue must publish a series of public offering statements and related documents. or to obtain credit ratings, and thus more complicated procedures, high cost issue. direct issue is simple to issue low-cost, financing fast speed, but the way in many countries issued laws and regulations are subject to restrictions; indirect issue for the issuer, although the distribution to pay certain costs, but help to improve the visibility of the issuer, financing time is not long, the risk is relatively small.
(2) the choice of the way of issuing securities. the issuer according to these characteristics and its own way to choose a different issue. issuers need to make the issuance of securities two options: First, select the subscribers to decide whether private or public offering; second is to select sales people, to decide whether to issue a direct or indirect distribution. If the selected indirect distribution, in addition to the selection of intermediaries, but also to choose to which indirect way of issue of issue.
35. What are the role of international reserves?
the role of international reserves are: (1) occurs in a balance of payments difficulties the country have a dampening effect. If it is short-term temporary balance of payments Support difficulties, government financing can be addressed through international reserves. (2) for intervention in foreign exchange markets, stabilize the currency exchange rate. When currencies in the foreign exchange market speculation and the non-normal volatility, a State Government may use foreign exchange reserves to intervene. (3) external debt service as the last credit guarantee, and help to improve the international credit. sufficient international reserves reflects a country has a good international credit.
36. how to manage a country foreign debt to avoid debt crises?
external debt management is to regulate the behavior of foreign debt borrowed to enhance the efficient use of debt financing, an important means of preventing the risk of external debt. debt management including foreign debt size, structure and the management of capital investment.
(1) external debt management is simply more reasonable to determine a level of foreign debt liabilities, which is to ensure the efficient use of external funds, the most important part of preventing the risk of external debt.
(2) structure of foreign debt management objective is to The composition of external debt financing for the optimal portfolio, thereby reducing the cost of financing, reduce financing risks. One focus of the management structure of foreign debt management financing structure, and second, the term structure of management, focusing on a reasonable short-term debt and long-term debt arrangements rate, in accordance with international practice, the short-term debt in total debt ratio should not exceed 25%, third is the management of international financing rates, the four structures is the management of currency and country, mainly to guard against exchange rate risk and political risk .
(3) foreign debt to invest in management. borrowed foreign debt can not promote a country's economic development, can repay foreign debt depends largely on the use of external funds can not produce good social and economic benefits, so reasonable or not to invest in foreign debt is important.
37. long-term capital flows and short-term capital flows, What's the difference?
long-term capital flows is more than one year cross-border capital flows. short-term capital flows are refers to the period of one year or less cross-border capital flows. The difference are: (1) investment for different purposes. long-term capital flows in order to meet the profit and control for investment purposes; short-term capital flows to capital safety, preservation, profitability and the needs of business investment. (2) investment period and the stability of the difference. long-term capital flows, investment horizon is longer, generally more stable; short-term capital flows, short term investments, with instability . (3) influence a country's money supply are different. long-term capital flows and generally do not affect a country's money supply; short-term capital flows can quickly direct impact on a country's money supply. (4) on the exchange rate, interest rates of different . long-term capital flows generally do not affect the exchange rate, interest rates; short-term capital flows on exchange rates, interest rates have a major impact.
38. What is the international foreign exchange market? What are the characteristics of the international foreign exchange market?
international foreign exchange market is the foreign exchange supply and demand The two sides traded foreign exchange market place or trading network. the main participants in foreign exchange bank, foreign exchange brokers, foreign exchange dealers, customers and relevant national central bank. Compared with other international financial markets, the international foreign exchange market has the following characteristics: ( 1) The international foreign exchange market is dominated by invisible market. the international foreign exchange market transactions often do not have a fixed place, is a telephone, telex, telegram, computer terminals and other communication tools constitute the complex information network. (2) international foreign exchange market is the time and space for uninterrupted operation of the market. the international foreign exchange market is not only no space constraints, but also from the time constraints, is a 24-hour operation of the market. (3) international trading currencies on the foreign exchange market, the relative concentration of species . the international trading currencies on the foreign exchange market is mainly U.S. dollar, euro, British pound, Swiss franc, Japanese yen and so on. (4) Government intervention in the international foreign exchange market is more widespread and frequent. In order to eliminate exchange rate fluctuations on international trade and international financial activities the adverse effects of government intervention in the international foreign exchange market, both in scale or frequency to be much larger than the other markets.
39. What is the offshore financial market? What are the characteristics of offshore financial markets ?
offshore financial markets, also called new international financial markets, is the country with the market, the domestic financial system, phase separation, both from the government currency control regulations, but also from the market of the host Government Act regulated financial markets . offshore financial market characteristics are: (1) business activities are rarely subject to regulatory control, simple procedures, low tax or tax-free, high efficiency; (2) the offshore financial markets business from operating foreign currency global international bank network structure, these banks are called relationship, this lending relationship involving almost all the countries in the world. (4) offshore financial market interest rate to LIBOR as the standard. Generally speaking, the deposit interest rate slightly higher than the domestic financial market, and lending interest rates and slightly lower than the domestic financial market, interest rate spread is very small, more attractive and competitive.
40. What is the globalization of financial markets?
mainly in the globalization of financial markets: first, between the various regions Financial markets are connected, forming a global financial markets, particularly the development of offshore financial markets led to the rapid flow of capital in the world. Second, the world's financial market transactions and trading tools to become the main international, investors and financing were selected in the international market and investment within the object. transactions of the main international financing in particular the identity of the international financial markets has brought the growing internationalization of trading tools. Third, the world's financial markets and major financial asset prices shrinking yield gap. The financial globalization has promoted major currencies on the foreign exchange market, the level of convergence and integration of global equity markets.
41. the development of financial globalization, the impact on international trade?
financial world of scope and scale of international trade continues to expand, financial globalization on the development of international trade, promote. trade integration, the development of financial internationalization of demand, financial internationalization, in turn, effectively promoted the development of international trade . mainly in the international financial institutions, the international settlement more efficient and convenient, thus promoting the expansion of the geographical scope of international trade and international trade expansion; international credit expansion of international trade provides a strong financial support; international derivatives the rapid development of financial markets to international trade provided a large number of parties involved in risk prevention tools, etc..
42. brief opening China's banking industry after the Entry into the main commitments?
WT0 the agreement according to the bank industry specific commitments of opening up are: (1) expand the business scope of foreign banks in foreign exchange. (2) the gradual expansion of the scope of RMB business of foreign banks. (3) to allow foreign banks to set up city outlets, to approve the same conditions and in the banks. (4) adhere to prudent business licenses issued.
43. What are the production of the Central Bank of necessity?
(1) the issue of issue bank notes, as commercial banks, financial strength, business scope restrictions, the issuing bank vouchers are often subject to very limited circulation, which requires a financial strength of banks and has authority to issue bank notes and to ensure unity of honor; (2) clearing the problem, with the commercial banks to increase the amount to pay each other, there is respective clearing banks themselves have been very inconvenient netting, the objective need for a unified clearing and settlement agencies credit and debt, as between the various commercial banks and financial settlement clearing services; (3) lender of last resort issue, a single bank due to limited funding, easy to produce due to lack of ability to pay run, for which there is need to focus on bank reserves, the payment difficulties of a bank bailout; (4) financial regulation, with the banking and financial market development, financial activities require the government to make the necessary management, and professionalism of this management and technical-professional institutions must be implemented.
44. with the commercial banks, central banks, which features business? < br> business that the central bank's liabilities from its assets, including money in circulation and all deposits and other liabilities. Although capital projects are also the source of funds, but not in the strict sense of the liabilities. commercial bank debt business is The absorption of funds from business sources, including deposit liabilities, other liabilities and equity capital. with the commercial banks, central bank debt business has the following characteristics: (1) its liabilities in the business of its currency is in circulation unique project, which is its exclusive authority to issue currency liabilities of the formation of a monopoly business. Commercial banks were not the liabilities, and on the contrary, the cash in the balance sheets of commercial banks in the asset belongs. (2 ) its business objects, although the central bank has deposit liabilities of the business, but its deposits are mainly two types of objects: one is the government and public institutions, and the other commercial banks and other financial institutions. Unlike commercial banks to the general population and enterprise business objects for the deposit. (3) its deposit business has a mandatory walk. is different from the principle of voluntary deposits of commercial banks, the law requires commercial banks to the central bank there is a certain amount of the reserve, with a mandatory.
45. in the trading relationship between money demand and interest rates, the Keynesian theory of law and the square root of the difference?
Keynesian theory and the square root law of motivation is all that transactions daily transactions for the convenience of the people, and in keep on hand as part of currency, transaction-based motivation is the demand for money arising from transactions demand for money. in the trading relationship between money demand and interest rates, the Keynesian theory of money demand that the transaction demand for money only to the level of income is income increasing function, and has nothing to do with interest rates and other variables. Baumol's square root law of the transaction demand for money analysis, the introduction of inventory theory that currency trading has the same interest rate elasticity of demand. Baumol that, in general, , people obtain income expended significant time difference between, so the rational choice is to not have the cash into a temporary form of interest-earning assets, and then transformed into cash when required, as long as interest income over the cost of cash to spend (mainly fees) to be profitable. So, the trading currency interest rate elasticity of demand equally.
46. briefly Fisher equation and the difference between the Cambridge equation.
Although form, Cambridge and the Fisher equation Trading is not much different equation, K is just the inverse of V, but in fact, especially in the theoretical analysis, the two are very different: (1) a different focus. Fisher equation to emphasize that the currency trading tools functions; Cambridge equation emphasizes the function of its assets. (2) attention to the Fisher equation is the number and speed of monetary expenditures; Cambridge equation of great importance to the stock of monetary assets held in a proportion of income. (3) stressed that the decision of the demand for money different factors. Fisher equation is used to explain changes in the quantity of money prices; Cambridge equation from the microscopic point of view of the demand for money, that money demand is mainly determined by the interest rates and other factors.
47. brief expansion of the money multiplier and deposit and differences between multiples.
(1) the money multiplier is the money supply relationship on the basis of a multiple currency, which is the base currency per one unit increase or decrease in money supply caused by a multiple of increase or decrease; deposits multiple deposit expansion multiplier is also called, refers to total deposits (or bank total assets) and the ratio between the original deposit. (2) the money multiplier and deposit the same multiple of monetary expansion points: Both are used to illustrate modern with the expansion of the credit characteristics of money. (3) the main difference between the two is two things: First, monetary expansion in the money multiplier and deposit constitutes a multiple of different numerator and denominator, money supply, money multiplier is based on the molecular to the base currency as the denominator of the ratio; deposits to total deposits of monetary expansion is a multiple of the molecular to the denominator of the ratio of the original deposit. Second, the analysis shows the angle and focus on different issues, the money multiplier is the angle from the central bank's analysis, concerns the central bank's base money and the whole society between the money supply, multiple relationships; multiple of monetary expansion in deposits of commercial banks from the perspective of the analysis, mainly reveals how the banking system through the absorption of the original deposits, loans and for credit transfer and settlement and other activities to create a multiple deposit money.
48. If the People's Bank of China Industrial and Commercial Bank of China to sell 100 million in debt, which is the base currency impact?
(1) the base currency money or energy, also known as a strong currency in circulation is held for the public sector and banking in cash reserves (including statutory deposit reserves and excess reserves) combined. (2) The People's Bank of China to the Chinese workers decreased by 100 million, ICBC is the People's Bank reduced the reserve of 100 million. This will directly reduce the number of base money, that is the base currency to reduce one million yuan.
49. How to determine the monetary balance and imbalance?
theory, monetary equilibrium is M. = M., the currency imbalance is ManM., but in practice, difficult to pass both the supply and demand accurately calculate the amount of money is equal to visually determine whether the balance, but with the currency to reflect supply and demand related variables, such as by observing interest rate, exchange rates, currency prices to determine the stability of supply and demand is balanced, this is one; Second, money is not a static equilibrium state, but rather a dynamic process, typically refers to a certain level of interest rates and money supply under the interaction between the demand for money with the formation of an equilibrium, is a balance to the imbalance, then imbalance back to balance by the constant movement, the currency balance is actually a frequent occurrence in the currency reached a temporary imbalance in the equilibrium state. Third, the money to achieve a relative balance, monetary equilibrium does not require the money supply and money demand exactly equal, as long as the money supply and demand roughly equal, leveraged by the currency impact of various economic variables on the stability of the currency supply and demand balance can be seen as.
50. brief monetary equilibrium and the relationship between the total social supply and demand balance?
money and there is confrontation between the real economy unified relationship. operation in the real economy, all kinds of commodities and currencies to be used for payment transactions, money supply and demand is behind the changes in various economic activities, the economic system in the end how much money, depending on how many goods and transactions required to achieve the currency, so supply and demand and total social supply and demand balance and the balance of the money plays a decisive role; Second, because the total money supply and demand and social sides of linkage exists between supply and demand relationship, money supply and demand balance has a direct impact on whether or not the total social the balance of supply and demand, because the money supply directly to the formation of aggregate demand, thereby determining the total supply.
51. briefly what selective monetary policy tools.
selective policy tools are: (1) consumer credit control refers to the central bank a variety of other consumer durable goods to real estate sales to be controlled by a central bank financing to financial institutions in real estate lending, restrictive measures to inhibit
system real estate speculation and bubbles. (4) Offer interest rates, the central bank focus on the development of the country's economic sectors or industries, such as an export industry, agriculture, incentive measures taken. (5) Prepaid import margin, is the equivalent of the Central Bank requires importers to import commodities advance a certain percentage of total deposits to curb the excessive growth of imports.
52. Brief description of the transmission mechanism of monetary policy.
transmission mechanism of monetary policy in the folder is to use monetary policy tools to influence bank intermediation indicators, and ultimately achieve policy objectives of pathway and mechanism of action.
monetary policy transmission channels are generally three basic aspects, the order is: (1) from the central bank to commercial banks and other financial institutions and financial markets. the central bank's monetary policy tools to manipulate , the first of the commercial banks and other financial institutions, reserves, financing costs, credit capacity and behavior, and financial market conditions and demand the money supply. (2) from commercial banks and other financial institutions and financial markets to businesses, residents, etc. non-financial sector, various economic actors. Commercial banks and other financial institutions operating under the central bank's policy to adjust their behavior, and thus the consumption of enterprises and residents, savings, investment and other economic activities have an impact. (3) from the non-financial sector economic agents to the social economic variables, including total expenditures, total output, prices, employment and so on. the central bank is through the use of these three aspects of monetary policy tools or means to achieve its monetary policy objectives.
53 . supervision of financial institutions, ways and means what?
mainly based on national financial supervision laws and regulations to carry out, in specific regulatory processes, the main means of the use of financial audits, the use of direction supervision. (1) financial regulation in accordance with law. Financial institutions must accept the supervision of the national monetary authorities, financial regulation must be in accordance with law, which is the basic point of financial regulation. to ensure that regulatory authority, seriousness, mandatory and consistency, to ensure its effectiveness. but to do this, the improvement of financial regulation and supervision is absolutely essential algorithm. (2) the use of means of implementation of the financial supervision of financial auditing. The financial audit, the central bank or regulatory authority in accordance with state audit responsibilities, the business activities of financial supervision and inspection. financial audit, inspection and supervision of the main contents include: the legitimacy of business, capital adequacy, asset quality, debt repayment capacity, profitability, management conditions. (3) .
54. Economic and Monetary what factors affected the degree of restriction?
a low degree of currency is the result of many factors. There are two dominant factors: First, the development of commodity economy level. with the commercialization of goods measured by the degree of monetization of economic development foundation. in self-sufficient economy or the product distribution of the planned economy, the use of money is small, the degree of money very low. Only when the social product becomes a commodity only when a wide range of commodity circulation and exchange, it needs to pricing in monetary circulation, media exchange and the value distribution; more developed commodity economy, commodity exchange, the value of the more complex distribution and value management, the force on the currency greater. Second, the role of monetary and financial level. the degree of monetary and financial role in a high degree of correlation. In general, the role of finance depends mainly on two factors: (1) currency credit relationship Coverage and influence; currency circulation and the expansion of credit activities and influence the field enhancement, can promote the process of money. (2) degree of financial development. As the financial industry, money can be effectively promoted the process.
55. Finance The meaning of innovation, form, feature and promote financial innovation What are the causes?
financial innovation is through the various elements within the financial sector re-created combinations and creative change or introduce new things. Contemporary Financial Innovation mainly: (1) the financial system innovation. the international monetary system of innovation; international financial regulatory system of innovation. (2). financial business innovation. new technology widely used in the financial sector; innovative financial instruments; the formation of new financial markets continue to ; new business and new transactions in large numbers. (3) the organizational structure of financial innovation. the creation of new financial institutions; various financial institutions and the gradual convergence of the business; financial institutions, the organization of innovation; management of financial institutions frequent innovation. Financial Innovation Main features: new technology, electronic, diversity, continuous. the main reason for promoting financial innovation: changes in economic thought; demand stimulus and supply-driven; the avoidance of unreasonable financial controls; to promote the new technological revolution.
56. What are the basic monetary system includes the contents?
monetary system since the state began to intervene in the currency in circulation after the formation. more sound monetary system, with the establishment of the capitalist economic system gradually established. monetary system includes six basic aspects:
(1) requires the monetary material, that determine which coins can be used as material goods. (2) provides monetary unit, which provides that the name of the monetary unit and currency units currency and coins. (4) for the right money or issue the right casting, metal casting money in circulation right under the provisions of the currency; credit under the provisions of the currency in circulation in the Central Bank to issue currency. (5) limited and unlimited legal tender legal tender, that the law How much money has the ability to pay. (6) to prepare the system, such as capital reserve, foreign exchange reserves, securities, or material prepared for such.
57. What are the determinants of exchange rates?
the gold standard, the two currency exchange rate is determined by the size of gold and coins is to determine the exchange rate parity basis. foreign exchange rate fluctuations in supply and demand in the market around the coin under the influence of changes in parity, in the fluctuations between the gold points.
in the early system of credit currency, countries with reference to the provisions of the last notes of the statutory gold coins gold, the exchange rate mainly by comparing notes the decision of statutory gold content of .1944 used in the Bretton Woods system of international monetary system after the U.S. dollar was pegged to gold, the national currencies and the case of the dollar peg, countries and the U.S. dollar under the currency according to the ratio of gold to determine the exchange rate, the central bank bears the responsibility for exchange rate stability; 70 years after the collapse of the Bretton Woods system, countries with floating exchange rate system in general, the exchange rate between the major currencies by the in the foreign exchange market to determine supply and demand conditions. Therefore, the current supply and demand factors where the impact of foreign exchange impact of exchange rate changes on a deep-rooted factors are: the balance of payments, inflation, interest rates, economic growth conditions, the central bank intervention, market expectations and so on, any one factor can cause changes in the exchange rate changes.
58. of money demand in China's macroeconomic factors
if the demand for money at this stage as our personal, business and other economic entities of the currency demand and, then, the demand for money at this stage of my main factors:
① income. The main micro-economic income were originally obtained in monetary terms, the spending must be paid in money. income and currency changes in demand relationship in the same direction. ② price. prices and demand for money, especially in transactions demand for money, and is the relationship between changes in the same direction. ③ interest rates. interest rate and currency demand is the relationship between the opposite direction. General , the higher the interest rate, the micro-economic agents will reduce the demand for money; interest rates lower money demand will increase. ④ Money Velocity. Monetary Velocity and the changes in aggregate demand is the inverse relationship. ⑤ proceeds of financial assets rate. For example, when the bank deposit interest rates significantly lower, people more options to stocks, bonds or other securities in the form of insurance to retain assets; and when the stock returns decline, people are more likely to choose bank deposits or holding money. ⑥ enterprises and residents on profits and price expectations. When the business-to-high profit expectations, often have higher transaction demand for money, therefore, both in the same direction of change. When the residents of the higher price expectations , tend to increase current consumption and reduce saving, population increases the demand for money, so a reverse two changes. ⑦ other factors. Credit development. in a more developed credit, relatively sound social credit system, economic agents the amount of money required to be less compared to some. financial institutions, advanced technical means of the merits of the extent and quality of service. advanced financial techniques and high-quality financial services to increase the velocity of money can often reduce the real demand for money. countries The political situation on the demand for money. In addition, a country's national character, habits, cultural traditions also have an impact on the demand for money.
59. decided to micro-foundation of money demand of residents
①
resident transactions demand for money and the transaction cost demand for money and money incomes are correlated with interest rates negative. residents of conventional levels of precautionary demand for money positively correlated with net expenditure, the net expenditure of residents of the greater demand for precautionary money the more; residents of speculative demand for money and is a negative correlation between interest rates.
②
enterprise demand for money under normal circumstances, corporate transactions demand for money and the interest rate is negatively correlated with transaction costs and showed a positive correlation between transaction size. enterprises precautionary demand for money is an enterprise in order to prevent changes in the balance of payments and avoid unconventional cash flow problems or the loss of investment opportunities and hold a favorable currency. as the case may be. Enterprises Investment demand for money is held to meet investment needs money. enterprise will become more active use of various investment opportunities, profits, investment will gradually increase the demand for money.
③
government departments, government departments, the demand for money money demand mainly to meet the needs of the performance of public functions, the appropriate government departments, the demand for money money can be divided into functional requirements, administrative demand for money, prevention, and asset demand for money. The Government's main function is to meet the demand for money to meet its financial functional needs, the occurrence of monetary income and expenditure embodied in the change in the financial deposits. China in recent years because of the adherence to implement a proactive fiscal policy, give full play to the national credit in the economy, and this part of the money demand has increased rapidly. administrative monetary demand mainly for the needs of administrative expenses. In recent years, government departments in order to improve their working conditions, improve efficiency, increasing administrative costs, resulting in continued growth in demand for money administration. government agencies precautionary demand for money is defined as guard against unexpected events in the social economy (such as earthquakes, floods, fire, war, etc.) resulting currency needs, and more to save cash rather than deposits. Government sector asset demand for money is defined as the preservation of public property and value-added need motivation or holding currency, this part of the demand for money performance in special cases only more strongly, in general, is negligible.
60. commercial bank deposit money created when commercial banks in the major constraints to the original
loans based on deposits, loans, will create new deposits. restricting commercial bank deposits derived from many factors, most notably the following three:
① statutory deposit reserve ratio
countries have made provisions in the law : commercial banks to their deposit, according to a certain percentage of the statutory deposit reserve and turned over to the Central Bank, commercial banks are not allowed to use. This part of the funds is the statutory reserve. the higher the statutory deposit reserve ratio of commercial banks to the central bank the statutory reserve to pay more, so, it restricted the size of deposits is an important factor derived from the statutory deposit reserve ratio of the level of currency deposits with commercial banks to create the ability to change in the opposite direction.
② rate of withdrawals
commercial bank demand deposits in cash to cash rate, also known as leakage rate refers to the total amount of cash leakage and the ratio of bank deposits; the leakage out of the cash deposits are no longer involved in the creation. because of leakage reduction of the customer in cash deposits, bank loans can be used for a corresponding reduction in the funds, derived deposits will be reduced, it is also restricting the size of a factor derived deposits.
high rate of withdrawals, which means less money commercial banks lending to the corresponding decrease the ability of commercial bank deposits derived; the other hand, will correspondingly increase the capacity of commercial bank deposits derived.
③
excess reserve ratio of commercial banks with excess reserves of commercial banks between the amount of loanable funds he has this consumer long relationship. excess reserves more less loanable funds, commercial bank deposits derived from the smaller capacity; less excess reserves can be used for the more money lending, commercial bank deposits derived from the more capacity large. can be seen, the excess capacity reserves and deposits derived from changes in the opposite direction between the relationship between the amount of the money supply have a major impact. Under normal circumstances, commercial banks will seek to hold less than the excess reserves; but the excess reserves too little will also affect the liquidity of commercial banks and security. Thus, commercial banks when excess reserve ratio to determine the need for comprehensive trade-off.
61. of the main factors to achieve a balanced monetary What?
monetary equilibrium In addition to the interest rate mechanism to play a role in implementation, there are the following factors:
⑴ central bank market intervention and effective control
changes in interest rates are subject to various factors, the demand for money ...
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