Analiza BRD - bachelor paper
In the previous chapter, we saw that banks, among other classifications, are classified into central banks and commercial banks. Each category has different functions. According to Bordo's 2007 model, a central bank has three main functions, the first being maintaining the price stability, or stability in the value of money, which by today's standards means maintaining a low inflation rate. The se[...]DOWNLOAD REFERAT
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The third function says that central banks are expected to maintain an efficient and smoothly running payments system and to prevent financial crises.The first central banks were the dominant issuers of banknotes, while also representing the government's bankers.Dominance in currency issue has usually given them a large enough size to be of natural choice for the role as banker to the state. The central banks play the role of bank for other banks, because the other banks are obliged to open current accounts at the central bank and to maintain mandatory minimal reserved in order to ensure their liquidity.
The central bank is an organ of the state. It establishes and leads the monetary and credit policy within the state's economic and financial policy. The central bank issues banking authorization norms, as well as functioning norms and supervision norms in order to protect depositors and to ensure an undisturbed operation of the banking system. A commercial bank also has several functions. The most important function of a commercial bank is to accept deposits from the public. Generally, there are three types of deposits, current deposits, fixed deposits and savings deposits.
In the case of current deposits, their depositors can withdraw and deposit money whenever they desire; because of this feature they're also called Demand Deposits. Fixed deposits, however, are deposits which are deposited for a definite period of time, which is generally not less than a year, so these are called long term deposits. This kind of deposits has a high interest rate, because banks can use them for a definite time period, without having the fear of them being withdrawn. « mai multe referate din Finante-banci