Topic: Financial system. Money and banks. Lecture №11 Topic: Financial system. Money and banks.

The plan: 1. The nature and function of finance. Finance system. 2. Public finances. Taxes and their functions. The state budget. 3. The law of the currency. Factors affecting the amount of money. 4. Inflation and its causes, types. 5. The concept of credit, credit functions. 6. Banking system and its role.

Credit - financial relations - relations related to cash (a market economy is commodity - money relations).

Finance company - a system of education and the use of funds of the resources needed to ensure reproduction.

Financial relations - a set of economic relations between States and enterprises, organizations, sectors, regions and individuals in connection with the cash flow statement.

Subjects of Financial Relations The relationship between the state and the enterprise; The relationship between companies and banks; Relations between enterprises; The relationship between the spheres of production and consumption; Relations between the State and the public;

Functions of Finance - is it a manifestation of, the particular visibility, essentially finance business.

Finance function: 1) Distribution: A. Primary - distribution that happens within the production and distribution due to the GNP and ND among business entities and turning in cash B. Redistribution through the state budget

2) Incentive - is that the funds will activate economic activities of businesses (taxes, subsidies, tariffs) 3) Social security - financial security is the minimum subsistence certain segments, the members of society, that is financial guarantee

4) Economic information - data and reports on the financial results of activities of an industrial and economic activities of society, it is necessary to manage the economy

Audit Service - provides analysis of financial and economic activities, and preparing expert reports and information, draw conclusions on the financial situation of enterprises, firms and companies.

Set of financial relations in the society is a system of finance. Financial mechanism - a set of forms and methods of practical organization of financial relations. Set of financial relations in the society is a system of finance.

The financial system also includes the creation of various funds: Special funds (Fund for Saving the Aral Sea Foundation "Umid"); Foundation charity; Religious fund (Waqf); Insurance Fund;

Public finance - the ratio at the turn of the LP and the National Bank in the monetary funds of state institutions, enterprises and ensure their economic growth, meeting the total needs of the members of society to control the distribution of the country.

State budget - financial plan of the state, the main backbone of the financial system. Its main purpose of using financial tools and mechanisms to create the conditions for sustainable economic development and social objectives of government solutions.

Taxes: common; individual; Income tax; Contributions to insurance; Indirect (customs and duties);

Budget expenditures: Development costs of production, ie investment; The cost of maintaining the social sphere; The costs of the state apparatus; Defense spending and military spending; Reserves for unforeseen economic circumstances (earthquake disaster);

Circulation of money - the constant movement of money in the economic circulation and uninterrupted performance of its functions. Monetary law states that the amount of money needed for treatment in a given period is directly proportional to the rate of turnover of money.

Formula monetary : TO = FS / LMS FS = sum of the prices of goods SDS = the speed of turnover of money

Factors affecting the amount of money (Keynes) The need of money for payments. Temporary (just in case), the accumulation of money and the right time, the release of their appeal. Accumulation of wealth in the form of bank notes.

Accumulation of wealth in the form of bank notes.... The need of money for payments. Temporary (just in case), the accumulation of money and the right time, the release of their appeal. Accumulation of wealth in the form of bank notes....

Causes of Inflation Money Inflation factors related to the supply of money: Internal factors: 1.Defitsit budget 2.Emissiya money - up to market for new banknotes increased emissions 3.Kreditorsky espansiya banks - when banks reduce lending rates

Konvertantsiya for hard currency. External factors: Government increases the external debt, the more foreign debt, the more inflation. Konvertantsiya for hard currency.

3.Uvelichenie long-term capital investments. 2) Inflation factors related to the demand for money: Inside: 1.Monopolii that provide most of the goods in the market dictate the price. 2.Voennye costs. 3.Uvelichenie long-term capital investments. 4.Rost prices for goods and services.

Inside: . International factor. The rise in prices of the means of production in the world market Structural crisis of the world economy associated with a decrease in natural resources increases the cost of factors of production in all countries (reduced production) War between the States in massive demand for money

Credit - a relationship between society, the workforce and employees, folding in the formation, use, and transfer of funds for temporary use under the terms of maturity, repayment of interest payments.

The functions of credit: Issue of payment, equivalent to the money (bills, check, certificate) Conversion of available funds in the functioning capital By issuing cash loans provide cash flow in the production of various industries Stimulating economic growth through the demand to issue loans and loan

Types of loans: Short-term loan (up to 1 year); The medium-term credit (from 3 to 5 years); Long-term loan (over 5 years); Private loans (issues on individual circumstances);

Formula rate of interest NC = PS / CA * 100 UP - the rate of interest PS - the interest on the loan COP - loan amount

Factors acting on the rate of interest: 1.The demand for and supply of money 2.The use-value of money 3. Conditions and terms of payment (repayment) of loans 4.What money makes loans 5. Inflation 6.The use of money in other forms of capital than to give her a loan 7.Give money to the degree of risk in the loan

Bank - financial institution that collects, stores, store cash controls the circulation of money, making settlements with customers by providing loans, issuing securities and money.

Uzbek banking system includes: CB RUzb with subordinate agencies NB foreign economic activity RUzb National joint-stock commercial CCIA Construction Bank (Uzbpromstroybank) Public and Commercial Bank of labor savings and kriditovaniya population RUzb (Uzbsberbank) National Joint-Stock Commercial Bank for agriculture (Uzagroprombank) commercial banks Cooperative private banks