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Published byAlannah Clarke Modified over 8 years ago
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CENTRAL BANKING
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CENTRAL BANKS HNB The Croatian National Bank (CNB) ECB The European Central Bank ECBS The European Central Bank System The Bank of England The Fed The Federal Reserve (System) …
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Which words are defined below? open-market operations, required reserve, discount rate The amount of funds that banks must hold in reserve against deposits made by their customers is called …. The rate at which the central bank lends money to commercial banks is called … The buying and selling of government securities in the market in order to increase or reduce the amount of money in the banking system is called …
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Match the two columns: interest money required lender open-market monetary discount exchange policy rate operations reserve rate rates supply of last resort
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Matchings: interest rates money supply required reserve open-market operations monetary policy discount rate exchange rate lender of last resort
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Central banks are in charge of… ensuring, holding, implementing, providing, supervising, acting …monetary policy …price stability …the exchange rate (forex operations, FX) …commercial banks …as lender of last resort …bank reserves (required reserve) …currency (cash) to banks …loans to banks - discounting …as the government’s bank …as the bankers’ bank
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Central banking implementing monetary policy ensuring price stability supervising the exchange rate (forex, FX, operations) supervising commercial banks acting as lender of last resort holding bank reserves (required reserve) providing currency (cash) to banks providing loans to banks - discounting acting as the government’s bank acting as the bankers’ bank
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Assignment: Read the extracts from Schiller’s Essentials of Economics (1996) and fill in the table: MONETARY POLICY PROBLEMS What has gone wrong? GOALS What should be done? MEASURES How should it be done? Expansionary (Loose) Restrictive (Tight)
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Central Banker of the Year Global and Europe, 2008 Fill in the missing words (trends) Find synonyms: -never occurring before (1) -unusual, unconventional (2) -limit/ceiling (3), govt. interference (3) -isolation (4), lack of money (4) Instruments of monetary policy?
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