Monetary policy. Objectives and tools

Monetary policy objectives are classified into final and intermediate. Ultimate goals: (a) Economic growth; b) full-time employment; c) price stability; d) stable balance of payments. Intermediate targets: (a) The money supply; b) interest rate; c) exchange rate. Monetary policy instruments include: a) credit limits;  direct regulation of the interest rate; b) changes in the rate […]

Bank loan and its forms

The need for credit is due to the fact that some households and enterprises have temporarily free cash, while others need them. In a market economy, the main suppliers of cash are households (the private sector), and consumers are businesses. Their interaction is carried out through intermediaries: commercial banks, investment companies, insurance companies, brokerage offices, […]