Currency and Coin —
The Federal Reserve Banks distribute currency (paper money) and coin to
depository institutions to meet the public’s need for cash. During periods of heavy cash demand,
such as the Christmas
season, institutions obtain larger amounts of cash from the Federal Reserve
Banks. When public demand for cash is light, institutions deposit excess cash
with the Reserve Banks, for credit to their reserve accounts. Currency and coin
received at the Federal Reserve Banks are sorted and counted. Unfit currency
and coin are destroyed and replaced with new currency and coin obtained from
the Treasury Department’s Bureau of Engraving and Printing and Bureau of the
Mint.
world economy
воскресенье, 23 сентября 2012 г.
Government Services
The Federal
Reserve System, through the Reserve Banks, performs various services for the
U.S. Treasury and other government, quasigovernment, and international
agencies. Each year, billions of dollars are deposited to and withdrawn by
various government agencies from operating_accounts in the U.S. Treasury held
by the Federal Reserve Banks.
Monetary Policy Role
The primary
responsibility of the central bank is to influence the flow of money and credit
in the nation’s economy. The Federal Reserve Banks are involved in this
function in several ways. First, five of the twelve presidents of the Federal
Reserve Banks serve, along with the seven members of the Board of Governors, as
members of the Federal Open Market Committee (FOMC). The president of the
Federal Reserve Bank of New York serves on a continuous basis; the other
presidents serve one-year terms on a rotating basis. The FOMC meets
periodically in Washington, D.C., and determines policy with respect to
purchases and sales of government securities in the open market, actions that
in turn affect of the availability of money and credit in the economy.
FEDERAL RESERVE BANKS
Federal Reserve Banks were
established by Congress as the operating arms of the nation’s central banking
system. Many of the services provided by this network to depository
institutions and the government are similar to services provided by banks and
thrift institutions to business customers and individuals. Reserve Banks hold
the cash reserves of depository institutions and make loans to them They move
currency and coin into and out of circulation/ and collect and process millions
of checks each day. They provide checking accounts or the Treasury, issue and
redeem government securities, and act in other ways as fiscal agent for the
U.S. government. They supervise and examine member banks for safety and
soundness. The Reserve participate in the activity that is the primary
responsibility
DOCUMENTARY CREDITS
A bill of exchange might not be honoured, or the order might be
cancelled. But a letter of credit is a more binding method of payment.
Letters of credit
(L/C) have been used for centuries in one form or another to enable travellers
to obtain money from overseas banks. The process begins with the traveller
asking his bank to open a letter of credit in his favour, i.e. for him, for a
specific amount which is debited to his account. The bank then drafts a letter
which will allow him to draw money on overseas banks with whom the home bank
has an agreement. The foreign banks will then draw on the home bank to recover
their payments.
This method of obtaining money has now generally been replaced by
Euro cheques, traveller’s cheques, and credit cards. But documentary credits —
letters of credit accompanied by documents -are widely
used in the import/export trade.
четверг, 20 сентября 2012 г.
DEPOSITS
In May versus April, deposits
from residents reduced considerably; their year on year growth rates
accelerated. Deposits from HHs (especially, national currency ones) continued
to go up. Balances of demand deposits from NFCs (in particular, national
currency ones) reduced, which was attributable to production cycle and
scheduled transference of tax payments.
In May, total new deposits grew
as compared to the previous month and by the 12-month cumulative data as well.
Unlike in April, volumes of agreements concluded with HHs went up.
Deposit-taking corporations survey
Monetary
aggregate M3
In May 2012, the money
supply reduced due to a decrease in national currency transferable deposits and
foreign currency other deposits. At the same time, national currency other
deposits and foreign currency transferable deposits showed an increase. The
year on year growth rates of the monetary aggregate M3 remained at the level of
the previous month. Internal credit reduced chiefly owing to a reduction in
claims on NFCs.
As of the end of May 2012, balances of the monetary aggregate M3 declined by
0.4% to UAH 701.1 billion. Within the month, the money supply dropped by UAH
2.6 billion chiefly due to a reduction in national currency transferable
deposits and foreign currency other deposits. The year on year growth rates of
the money supply remained at the level of the previous month, making up 10.2%.
In May, the increase in cash in
circulation outside deposit-taking corporations (M0) continued;
nevertheless, it slowed down as compared to April. Within the month, its
balance went up by UAH 0.3 billion to UAH 194.8 billion. Within the total money
supply, the portion of the monetary aggregate M0 grew by 0.2 p.p. to 27.8%.
Подписаться на:
Сообщения (Atom)