Transcript Factors affecting the amount of money

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.
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.
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
1) Inflation factors related to the supply of
2)
3)
4)
5)
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
External factors:
1. Government increases the external debt,
the more foreign debt, the more
inflation.
2. Konvertantsiya for hard currency.
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:
1. Issue of payment, equivalent to the money
(bills, check, certificate)
2. Conversion of available funds in the
functioning capital
3. By issuing cash loans provide cash flow in
the production of various industries
4. 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