Central banking system and its functions

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  Central banking system
  and its functions
  Manto Alexander
  Budget and Treasury
  Academy in Moscow
  2009
  

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

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

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

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  Currency issuance
  Exclusive privilege of a central bank
  

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

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

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

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  Required reserve ratio
  

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

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

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  Thank you for
  your attention.