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MONEY & BANKING jessica 9b econ 5A3800A1-DA39-4447-9193-C8FA9939909D -…

- - - - functions
        
        issuing notes and coins
        
        the only institution that can officially issue notes & coins, so not just anyone can produce it (scarcity characteristic).
        
        managing national debt
        
        repay public sector businesses on behalf of the government.
        
        regulating financial institutions
        
        makes sure commercial banks are doing their jobs properly, determining which organizations can become commercial banks.
        
        managing gold and foreign currency reserves
        
        used to make payments to other countries and to increase/stabilize national currency value if ever it falls.
        
        operating the government monetary policy
        
        raising or lowering interest rates based on the current circumstances.
        
        managing payments to and from the government
        
        the government holds their taxes, wages of government employees, & other revenues in a central bank account.
        
        supervises banking system
        
        makes sure commercial banks are doing their jobs properly, determining which organizations can become commercial banks.
    - - providing financial services for profit
        
        deposits & savings accounts
        
        current, checking, saving
        
        loans
        
        overdraft: loan that allows customers to pay bills/expenses during insufficient account balance.
        
        personal: loan to pay for personal expenses the repay over time.
        
        commercial: loans for businesses to cover their costs.
        
        mortgage: loan for borrowers to buy/refinance a house/home.
        
        buy & selling shares
        
        providing insurance
        
        forex (foreign exchange)
        
        exchange foreign currencies.
        
        operating pension funds
        
        providing financial advice