money - an important part of our life, without which the existence and proper functioning of our society is almost impossible.The degree of their value to society is reflected in the ambiguous attitude to money.They determine the level of social status and well-being as well as being the root cause of most crimes.Admiration and conviction - two opposite poles to do with money.
money - a commodity that has certain properties, such as: ravnokachestvennost, the keeping, economic divisibility, portability, high value per unit weight / account, a constant value.Of course, money - this is a specific type of product, they are not sold and bought in the conventional sense of the buying and selling of goods.Money on the opportunity cost of changing to liquid assets.This value is measured in terms of the nominal rate of interest.
There are certain institutions, whose main function - ensuring the interaction of supply and demand for money.The network of such institutions is the money market.Money market - a market of highly liquid short-term securities.If the curves of demand and supply intersect, the market holds the balance of assets, agents and money offered by central banks in the framework of monetary policy.
To monetary policy has been successful, it is necessary to measure the money supply.This is fairly easy, since almost all types of assets can perform the functions of money, and division of property and liquid assets of money is almost impossible.
Money and money market allow the state to carry out monetary policy by maintaining the money supply (expansion or contraction of the money supply) at a certain level so as not to cause inflation or recession.If this policy is carried out properly, the economy is always in stock such quantity of money and credit, which promotes economic development.
If the money market offers too much money, they are cheaper, and interest rates on loans are reduced.However, growing inflation and money ssudozaёmschiki currently paid on loans "worth" less than when they were taken on credit.Payment purchasing power of money is poured in an increase in interest rates.
Money market solves a very difficult task: forwards the money savings from those who earn more, to those who spend more.Channels such financing may be direct or indirect.Direct channels involve direct transition of funds to borrowers in exchange for shares or debentures.Indirect channels suggest the presence of intermediaries - banks, insurance companies, foundations.
World currency market - this is a very complex mechanism, the operation of which is based on certain criteria.These criteria (basic tools move money, the main features of the cash flows, the economic purpose of the purchase money) allow classification of markets, which make up the money market.There are loan obligation market, the currency market, the stock market, the market for bank loans, stock market, capital market and money market.Naturally, the latter market, money market, is the main structure of the money market.
demand for money is determined by the desire of economic agents to save money stock at a certain point.And the money supply, on the contrary, is the money supply, which the economic operators agree to provide for the use borrowers.Since the proposal is made up of the existing money supply in circulation and emission activity of banks, banks are guided precisely on demand to control the money supply.
