2. monetary policy-Is the measure to which the Bank uses to control the money supply, from which the direction for interest rates to promote growth and economic stability.-There are 2 types of monetary policy is monetary policy expansion and monetary policy tightening.-The State Bank of tools used to adjust the money supply:+ Open market operations: Bank of business done through the open market to buy, sell Treasury bills, certificates of deposit, credit Bank of State papers have different short term rates on the money market to make national policy.+ Discount interest rates: the interest rates that the Central Bank for loans to commercial banks in the short time.+ Compulsory reserve rate: Central Bank required commercial banks to reserve a certain amount of money makes up a portion of the total amount of capital of commercial banks.
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