Inflationary expectations caused by credit and budget expansion are associated, first of all, with the unjustifiably high state debt and the growth of the state budget deficit. State credit and budget policy plays a decisive role in this process.

Failure of a loan to fulfill its functions occurs when debts are written off or accounts payable. In this case, such fundamental properties of credit relations are ignored; such as payment, repayment, urgency and responsibility, without which, in fact, one cannot talk about a loan. Termination of reimbursement of accounts payable and payment of interest on loans means an increase by the corresponding amount credit money. There is, as it were, a hidden emission of money. Instead of the money going to repaying the loan and paying interest, it goes to commodity market. The result is swelling (instead of contraction) money supply which directly leads to inflation.

As a result, not only does inflation increase, but conditions are created for economic irresponsibility of business entities, which become confident in forgiveness. At the same time, this means maintaining unprofitable, inefficient enterprises, which becomes an additional burden on the economy.

However, the transition of the Central Bank to lending to commercial banks and others carried out in Russia financial institutions was accompanied by unprecedented plunder of state financial resources and injection bank money instead of lending real sector economy.

Without going into details of the state debt and the growth of the budget deficit (this is a separate topic), it should be emphasized that their reduction and coverage is often carried out through additional money and credit emission, which clearly enhances inflationary processes. Tax oppression as a way to reduce budget deficit also increases inflation, because tax pressure negatively affects producers of goods and services, which leads to a reduction in the supply of goods. And this causes a further imbalance in the commodity and money supply.

To summarize, it must be said that, despite the fact that open inflation distorts the regulatory role of the market and destabilizes it, the less it makes it possible to realistically assess the situation and identify destabilizing moments in economic activity, as well as outline measures to normalize the market mechanism as a regulator economic relations. Suppression not only leads to destabilization of the market, but also destroys the market mechanism.

So, inflation is an increase in prices for goods and factors of production. However, inflation does not mean an increase in prices in equal proportions and simultaneously for all goods. The general price level is growing, while each product group may be characterized by specific price dynamics. Therefore, price indices are used to measure inflation or determine its absence. Several indicators are used to measure open inflation. The most famous are the Paasche index, the inflation index consumer prices and gross deflator internal product(GDP).

While noting the great practical significance of using inflation indices, it is at the same time necessary to remember certain flaws and distortions associated with the use of these indicators. First of all, these indices may reflect price increases due to an increase in the quality and technical parameters of manufactured products, and therefore have nothing to do with inflation. Therefore, inflation indices may contain a non-inflationary component, which clearly leads to a distortion in the assessment of the inflation level towards its overestimation.

The next remark concerns the degree of aggregation of a particular indicator. The GDP deflator has the highest level of aggregation, since it covers almost the entire range of products produced in the country. If in national economy significant structural changes in a relatively short period of time, then, relying on the indicators of the GDP deflator and the rate of its change, one can obtain a very distorted picture of the inflation taking place.

The price growth rate (price index) is one of the most important criteria when determining the type of inflation. Depending on the rate of price growth, moderate (creeping), galloping and hyperinflation are distinguished.

Moderate, or creeping inflation characterized by insignificant rates of price growth - less than 10% per year.

It is also called regulated, since the government, using various levers, influences market conditions, keeps money circulation under control, sometimes deliberately stimulating, sometimes counteracting price increases. In such a situation, money retains its value because purchasing power remains relatively stable.

Galloping inflation is determined by the relatively high rate of depreciation of money. Conventionally, the price growth index for this type of inflation is 20-200% per year. This determines the desire of money owners to immediately materialize it, which acts as additional factor price increases as demand increases. Transactions are concluded in close connection with rising prices.

Hyperinflation is characterized by astronomical rates of price growth, sometimes reaching several thousand percent per year. Under such conditions, the gap between price increases and increases in wages becomes catastrophic. The well-being of even the most affluent segments of the population is deteriorating. Hyperinflation indicates the onset of collapse of the country's monetary economy due to uncontrollability of economic processes.

Stagflation occupies a special place. It characterizes the development of inflationary processes in conditions economic downturn and the depressed state of the economy. The term itself comes from two concepts that characterize the simultaneous presence of the economy in a state of stagnation (curtailment of production, depression) and inflation.

According to the criterion of the ratio of price increases for various product groups, i.e., according to the degree of balance in price growth, they distinguish between balanced and unbalanced inflation.

In terms of predictability, inflation is classified as expected and unexpected. By expected inflation, it is understood that it is predictable, and unexpected inflation, on the contrary, is unpredictable. Factors of surprise or predictability shed new light on the impact of inflation. If all market agents and the population know that next year prices will increase by a certain number of times, then they should prepare for this, based on the problems that arise for each participant in economic relations.

monetary credit inflation economic

4.3. essence and forms of manifestation of inflation

Inflation is a phenomenon inherent exclusively in paper money circulation, meaning the overflow of the sphere of circulation with excess mass compared to the needs of trade turnover paper money, their depreciation and - as a result - an increase in prices for goods and services, a fall in the purchasing power of money. That is, inflation is caused primarily by the overflow of monetary circulation channels with excess money supply in the absence of an adequate increase in the commodity supply.

Distinguish the following types and forms of manifestation of inflation.

By degree of manifestation:

creeping inflation - inflation expressed in a gradual long-term increase in prices, when the average annual rate of price growth is 5-10\%;

galloping inflation - inflation in the form of a sudden increase in prices, when the average annual rate of price growth ranges from 10 to 50\%;

hyperinflation is inflation with a very high rate of price growth, when price growth exceeds 100% per year (the IMF defines hyperinflation as a 50% price increase per month).

By mode of occurrence:

administrative inflation - inflation generated by “administratively” managed prices;

cost-push inflation is inflation that manifests itself in rising prices for factors of production (in particular resources), as a result of which production and distribution costs rise, and with them the prices of manufactured products;

demand inflation - inflation, which manifests itself in the excess of demand over supply, which, of course, leads to an increase in prices;

supply-side inflation - inflation manifested in rising prices caused by an increase in production costs in conditions of underutilization of production resources;

imported inflation - inflation caused by external factors, for example, excessive influx of foreign currency into the country and increased import prices;

credit inflation is inflation caused by excessive credit expansion.

Inflation manifests itself in the following ways:

open - i.e. inflation due to the free (open) rise in prices of consumer goods and production resources;

hidden (suppressed) - when inflation arises as a result of a commodity shortage, accompanied by the desire of the state to keep prices at the same level. In this case, there is a “washing out” of goods from open markets and their flow to shadow, “black” markets, where prices certainly rise.

Despite the many factors that cause inflation, three main groups of factors that generate inflation can be distinguished.

Cost inflation. This type of inflation manifests itself in rising prices for resources and factors of production, as a result of which production and distribution costs, as well as prices for manufactured products, increase. The reasons for rising prices for resources are, as a rule, changes in world prices for resources and a depreciation of the domestic currency. In turn, an increase in costs for a specific product affects changes in prices for other goods, since in order to purchase goods that have become more expensive, it is necessary to raise the price of your product.

The reasons for the occurrence of these types of inflation in different countries depend primarily on the phase economic development, the place occupied by the country in the world market, and production conditions in a particular country. In countries with high level competitiveness, hyperinflation due to cost inflation, as a rule, does not manifest itself, since competition serves as a natural limit to price growth, and the higher the competition, the less likely hyperinflation will occur.

Cost-push inflation is characterized by the impact of the following non-monetary factors on the pricing process:

price leadership when large enterprises When setting prices for their products, industries are guided by prices set by leading companies;

a decline in labor productivity growth and a fall in production;

the increasing importance of the service sector;

acceleration of the increase in costs and especially wages per unit of production;

energy crisis.

Demand inflation. This type of inflation manifests itself in an economic situation when the aggregate cash income population and businesses are growing faster than the growth of real goods and services. Typically, this type of inflation occurs most often at full employment. It does not matter how demand increases - due to increased government spending or due to increased demand for goods and services from entrepreneurs.

Demand demand inflation is caused by a number of monetary factors:

militarization of the economy and increased military spending;

state budget deficit and growing domestic debt;

credit expansion of banks;

excessive investment in heavy industry;

imported inflation.

Supply inflation. This type of inflation means an increase in prices, which was provoked by a significant increase in production costs in conditions where production resources were underutilized, for example, in a situation where enterprises are carrying out a major modernization of their fixed assets. This type of inflation, in which prices rise when aggregate demand decreases, is quite common in world practice, although other factors can also influence this type of inflation. According to the theory of inflation, such price increases are explained mainly by factors that lead to an increase in production costs per unit of output, i.e. in this case, it is not demand, but costs that raise prices. Consequently, with this type of inflation, its main sources are rising costs due to rising wages, as well as rising prices for raw materials and energy. In practice, a situation often arises where both demand and supply inflation occur simultaneously. The main reasons for the increase in both income and costs are, as a rule, monopolies - the state, trade unions, firms.

The growth of inflation is also influenced by an increase in the state budget deficit, although the state sometimes uses the so-called emission-free source of financing the budget deficit. However, practice shows that in this case there is simply a deferred emission, since the accumulated state debt you will still have to repay.

Of course, inflation has a sharply negative impact on the economic and social development countries. To combat inflationary factors, the state implements a set of measures for state regulation of the economy, i.e. implements its anti-inflationary policy.

In response to the interaction of inflation factors, two main directions emerged anti-inflationary policy- deflationary and income policies.

Deflationary policies are methods of limiting money demand through monetary and tax mechanisms by reducing government spending, increasing the refinancing rate, increasing tax pressure, and limiting the money supply. A feature of deflationary policy is the slowdown economic growth and crisis phenomena in the economy.

Income policy involves parallel controls over prices and wages by freezing them completely or setting limits to their growth.

Anti-inflationary policy options are selected depending on the situation in the country and the priorities existing in society at a given time. If the goal was to restrain economic growth, then a deflationary policy was pursued; if the goal was to stimulate economic growth, then preference was given to an income policy. If the goal was to curb inflation at any cost, both methods of anti-inflationary policy were used in parallel.

Inflation- a phenomenon inherent exclusively in paper money circulation, meaning the overflow of the sphere of circulation with a mass of paper money that is excessive compared to the needs of trade turnover, their depreciation and, as a result, an increase in prices for goods and services, a fall in the purchasing power of money. That is, inflation is caused primarily by channel overflow money circulation excess money supply in the absence of an adequate increase in the commodity supply.

There are the following types and forms of manifestation of inflation. 1. According to the degree of manifestation:

- creeping inflation – inflation, expressed in a gradual long-term increase in prices, when the average annual rate of price growth is 5–10%;

- galloping inflation – inflation in the form of a sudden increase in prices, when the average annual rate of price growth ranges from 10 to 50%;

- hyperinflation – inflation with a very high rate of price growth, when price growth exceeds 100% per year (the IMF defines hyperinflation as a 50% price increase per month).

2. According to the methods of occurrence:

- administrative inflation – inflation generated by “administratively” controlled prices;

- cost inflation – inflation, manifested in rising prices for factors of production (in particular, resources), as a result of which production and distribution costs increase, and with them the prices of manufactured products;

- demand inflation – inflation, which manifests itself in the excess of demand over supply, which, of course, leads to rising prices;

- supply inflation – inflation, manifested in rising prices due to increased production costs in conditions of underutilization of production resources;

- imported inflation – inflation caused by external factors, for example, excessive influx of foreign currency into the country and increased import prices;

- credit inflation – inflation caused by excessive credit expansion.

3. According to the forms of manifestation, inflation can be:

- open – those. inflation due to the free (open) rise in prices of consumer goods and production resources;

- hidden (suppressed) – when inflation arises as a result of a commodity shortage, accompanied by the desire of the state to keep prices at the same level. In this case, there is a “washing out” of goods from open markets and their flow to shadow, “black” markets, where prices certainly rise.

Despite the many factors that cause inflation, three main groups of factors that generate inflation can be distinguished.

Cost inflation manifests itself in rising prices for resources and factors of production, as a result of which production and distribution costs rise, as well as prices for manufactured products. The reasons for rising prices for resources are, as a rule, changes in world prices for resources and a depreciation of the domestic currency. In turn, an increase in costs for a specific product affects changes in prices for other goods, since in order to purchase goods that have become more expensive, it is necessary to raise the price of your product.

The reasons for the occurrence of these types of inflation in different countries depend, first of all, on the phase of economic development, the place occupied by the country in the world market, and production conditions in a particular country. In countries with a high level of competitiveness, hyperinflation due to cost-push inflation, as a rule, does not occur, since competition serves as a natural limit to price growth, and the higher the competition, the less likely hyperinflation will occur.

Cost-push inflation is characterized by the impact of the following non-monetary factors on the pricing process:

Price leadership, when large enterprises in the industry, when setting prices for their products, are guided by the prices set by leading companies;

Declining labor productivity growth and falling production;

Increasing importance of the service sector;

Acceleration of the increase in costs and especially wages per unit of production;

Energy crisis.

Demand inflation manifests itself in an economic situation when the total monetary income of the population and enterprises increases faster than the growth of the real volume of goods and services. Typically, this type of inflation occurs most often at full employment. It does not matter whether demand increases due to increased government spending or due to increased demand for goods and services from entrepreneurs.

Demand demand inflation is caused by a number of monetary factors:

Militarization of the economy and increased military spending;

State budget deficit and growing domestic debt;

Credit expansion of banks;

Excessive investment in heavy industry;

Imported inflation.

Supply inflation means a rise in prices that was triggered by a significant increase in production costs in conditions where production resources were underutilized, for example, in a situation where enterprises are carrying out major modernization of their fixed assets. A type of inflation in which prices rise as prices fall. aggregate demand, is quite common in world practice, although this type of inflation can be influenced by other factors.

Among the most typical reasons for inflation the following can be distinguished:

Carrying out unreasonable money issue;

State budget deficit;

Reduction in production and compression of the mass of consumer and investment goods;

A tax system that undermines incentives for production growth;

Monopoly position in the market of large manufacturers, artificially inflating prices;

Proactive price increases to compensate for expected losses;

Increase in prices for imported goods, trade discrimination, negative balance of trade and payments;

Growth of internal and external debt eroding purchasing power national currency, exacerbating the state budget deficit;

Inflation expectations.

Generally consequences of inflation are negative in nature. They affect the development of the economic process, on social conditions, various aspects of public life.

One of the inevitable consequences of inflation is the redistribution of income. The winners are those groups of the population that take out money loans at a small interest rate and return the loans with money depreciated as a result of inflation. The benefits from rising prices are primarily obtained by participants in speculative transactions, buyers of physical capital, material resources at unjustifiably low prices. In the context of inflation, economic management becomes more difficult. Inflation slows down the solution of tasks aimed at stabilization. The authority of the authorities is undermined government controlled, trust in ongoing activities decreases. Sometimes positive measures aimed at normalizing the socio-economic situation lead to undesirable results. Thus, the indexation of wages and pensions carried out in a number of countries, being not backed by monetary resources, entailed more and more rounds of uncontrollable inflation. The closure (and bankruptcy) of unprofitable enterprises and non-payment of wages lead to increased unemployment.

Inflation is caused by internal and external reasons. Among the internal causes (factors), a distinction is made between monetary (monetary) and non-monetary components. Monetary reasons:
Imbalance government revenues and expenses, state budget deficit

2) credit expansion - expansion of the scale of bank lending beyond the real needs of the economy, which leads to the issue of money in without in cash;
3) excessive emission of money in cash, an increase in the velocity of money circulation
4) excessive investments - development of one industry, imbalances Non-monetary reasons - also ultimately lead to higher prices and depreciation of money.
Deformation of the economic structure.
Militarization of the economy - excessive military spending
3) Monopoly in economics. - the position in the market of large manufacturers who artificially inflate prices.
4) Extraordinary circumstances of a socio-political and economic nature - strikes, demands from trade unions for wage increases.

5) Errors in the conduct of monetary, fiscal, and pricing policies of the state. – Share of indirect taxes in tax revenues the budget is 70%, they are included in the price, price increases.
External reasons –
1) structural global crises, accompanied by multiple increases in prices for raw materials and oil, the import of which became the reason for increasing prices for goods and services exported to other countries;
2) the influx of foreign currency into the country, the exchange of national currency for foreign currency by banks, creates a need for additional issue of paper money;
3) import of imported goods in high demand, more expensive compared to similar national goods;

STELUS -N T C N S

SECTION 1 Money and money circulation

1.1. In what form of value did money appear?

a) simple and random

b) complete and expanded

c) universal

d) monetary =

1.2. What type of credit instruments of circulation appeared first?

a) bill =

b) bank card

1.3. What type of bill is associated with the sale of goods?

a) financial bill

b) commercial bill =

c) treasury bill

d) friendly bill

1.4. When does money function as a measure of value?

a) when determining the price of goods =

b) in the process of exchanging goods for goods

c) when exchanging goods for gold

1.5. Why is money used as a means of payment?

a) to pay for goods in cash

b) to pay taxes =

c) for issuing wages =

1.6. In what function does the counter-movement of money and goods occur?

a) as a function of a measure of value

b) as a medium of exchange =

c) as a means of payment

1.7. In what function is the movement of money separated from the movement of goods?

a) as a function of a measure of value

b) as a medium of exchange

c) as a means of payment =

1.8. Is the process of demonetization of gold completed?

1.9. Does the purchasing power of the money supply in circulation depend on the amount of money in circulation?

1.10. Are banknotes issued by the Treasury?

1.11. Are treasury bills issued by the Ministry of Finance (Treasury)?

1.12. Establish the correspondence between the type of bill of exchange and the type of operation (transaction) underlying the issuance of the bill of exchange.

1.13. Arrange credit instruments of circulation in the order of their appearance.

1. bank card (3)

2. bill (1)

1.14. What are non-cash payments?

a) these are payments made only in the form of offsets

b) these are payments made without the use of cash =

1.15. Who in the Russian Federation determines the rules, terms and standards for non-cash payments?

a) Ministry of Finance

b) Government

c) Central Bank =

1.16. Is there a connection between cash and non-cash circulation?

a) available =

b) not available

1.17. Where is the share of non-cash payments higher?

a) in economically developed countries=

b) in Russia

1.18. Whose instructions does the bank carry out when making payments using payment orders?

a) supplier (recipient of funds)

b) buyer (payer) =

1.19. Who instructs the bank to open a letter of credit?

a) payer (buyer) =

b) recipient of funds (supplier)

1.20. When making collection payments, whose instructions does the bank carry out?

a) supplier (recipient of funds) =

b) buyer (payer)

1.21. What does the money supply M0 mean?

a) cash in circulation =

b) cash in circulation plus funds in household deposits

c) cash in circulation plus account balances

1.22. Which of the following factors leads to a change in volume money supply in circulation according to the law of money circulation?

a) quantity of goods in circulation =

b) money turnover rate =

c) level of commodity prices =

d) level of interest rates

1.23. What is the monetization rate?

a) the ratio of the average annual value of the money supply to the nominal value of the gross domestic product (GDP) =

b) a value equal to the velocity of money circulation

1.24. What characterizes the monetization coefficient?

a) the degree of provision of the economy with cash

b) the degree of provision of the economy with cash =

1.25. What is included in cash flow?

a) cash flow =

b) non-cash cash turnover =

c) the volume of the monetary base

1.26. What indicators are included in the M2 monetary aggregate?

a) banknote and coin =

b) time deposits =

c) demand deposits =

d) certificates and bonds of government loans

1.27. How to determine the velocity of money circulation?

a) as the ratio of the sum of prices of goods to the monetary aggregate M2

b) as the ratio of the volume of the monetary base to the monetary aggregate M2

c) as the ratio of gross domestic product (GDP) to the monetary aggregate M2 =

1.28. Place the stages of collection payments in the correct sequence:

1. The supplier’s bank forwards the received documents to the buyer’s bank (2)

2. Funds received from the buyer are transferred to the supplier’s bank (4)

3. Having shipped the products and completed all formalities Required documents, the supplier submits them to the bank serving him along with the collection order (1)

4. The buyer’s bank transfers the received documents to the buyer against payment (3)

5. The supplier’s bank credits the received amounts to the supplier’s bank account (5)

1.29. What is a "monetary system"?

a) these are types of banknotes

b) this is a form of organization of money circulation in the country =

1.30. What is bimetallism?

a) this is a monetary system in which the role of universal equivalent is assigned to two metals =

b) for one metal

1.31. Under what system did the gold exchange standard exist?

a) within the framework of bimetallism

b) within the framework of monometallism =

1.32. Under what system was there free coinage of gold coins?

a) with gold monometallism =

b) with bimetallism =

c) with a silver standard

1.33. Who has the exclusive right to issue banknotes?

a) Government

b) Central bank =

1.34. Is the official gold content in the ruble currently fixed?

1.35. Do commercial banks participate in the issuance process?

1.36. Who organizes cash circulation in the country?

a) commercial banks

b) central bank =

1.37. Who decides on the release of new coins and banknotes and the withdrawal of old ones?

a) treasury

b) Board of Directors of the Bank of Russia =

1.38. What types of monetary systems do you know?

a) metal circulation =

b) non-cash circulation

c) circulation of paper and/or credit money =

d) bill circulation

1.39. Determine what type of monometallism the following characteristic features belong to:

Character traits	Gold coin standard (M)	Gold bullion standard (C)	Gold exchange standard (D)
1. Gold is going out of circulation
2. Gold functions as a means of circulation and payment
3. Exchange banknotes for gold coins
4. Exchange banknotes for gold in the form of bullion
5. Banknotes are exchanged for foreign currency, redeemable for gold.

1.40. Arrange views monetary system in the order of their appearance on Russian territory?

1. gold bullion standard (3)

2. gold coin standard (2)

3. system of circulation of paper and or credit money (4)

4. silver standard (1)

1.41. What are distinctive features modern inflation?

a) local character

b) all-encompassing nature =

c) chronic nature =

1.42. What factors cause demand-pull inflation?

a) price leadership

b) purchase central bank foreign currency =

c) a sharp rise in oil prices

d) government budget deficit =

1.43. What factors cause cost-push inflation?

a) credit expansion of banks

b) acceleration of the increase in costs per unit of production =

c) rising oil prices =

1.44. What are the types of inflation depending on the rate of price growth?

a) creeping inflation =

b) demand inflation

c) hyperinflation =

1.45. How does hidden inflation manifest itself?

a) in raising prices

b) in goods shortage =

c) in promotion exchange rate

1.46. What are the methods for stabilizing money circulation?

a) nullification =

b) inflation

c) devaluation =

1.47. What are the forms of inflation?

a) general increase in commodity prices =

b) appreciation of the national currency

c) depreciation of the national currency =

1.48. What is money depreciation?

a) a decrease in the purchasing power of the money supply

b) decrease in the purchasing power of the monetary unit =

c) reduction in the loan interest rate

1.49. What is the nature of the factors causing demand inflation?

a) monetary factors =

b) non-monetary factors

1.50. What are the nature of the factors causing supply inflation?

a) monetary factors

b) non-monetary factors =

1.51. What type of inflation is caused by a sharp rise in oil prices?

a) demand inflation

b) cost inflation =

1.52. What type of inflation is caused by banks' credit expansion?

a) demand inflation =

b) cost-push inflation

1.53. What type of inflation is associated with violation of the law of monetary circulation?

a) demand inflation =

b) cost-push inflation

1.54. What type of inflation is caused by the militarization of the economy?

a) demand inflation =

b) cost-push inflation

1.55. Establish a correspondence between the rate of price growth and the type of inflation

1.56. What is the main position of the metallic theory?

a) money is only paper money

b) only precious metals are money =

c) money includes both paper money and precious metals

1.57. What are the fallacies of the nominalist theory of money?

a) money arises as a result of development commodity production and exchange

b) money is created by the state, and its value is determined by its face value =

1.58. What kind of money did representatives of the early metal theory prefer?

a) precious metals=

b) paper money

1.59. What kind of money did representatives of nominalism prefer?

a) precious metals

b) paper money =

1.60. What is the main thesis quantity theory money?

a) money is a technical instrument of exchange

b) the value of money is determined by its quantity =

SECTION 2. International monetary and settlement relations

2.1. Who is the issuer of the national currency?

a) the central bank of the country =

b) national commercial banks =

c) international monetary organizations

2.2. Who is the issuer of international monetary units?

a) national central and commercial banks

b) international monetary organizations =

2.3. What types of currencies are considered international monetary units?

a) US dollar

b) SDR (SDR) =

c) Japanese yen

2.4. In what form is the national currency issued?

a) only in cash

b) only in non-cash form

c) in cash and non-cash form =

2.5. In what form is the international monetary unit SDR issued?

a) only in cash

b) only in non-cash form =

c) in cash and non-cash forms

2.6. What is full convertibility of a national currency?

a) no restrictions on current international transactions

b) no restrictions on international transactions related to the movement of capital

c) absence of all types currency restrictions =

2.7. What determines the type of currency convertibility?

a) on the exchange rate regime

b) on the number and type of currency restrictions =

2.8. What is internal currency convertibility?

a) the possibility of exchanging national currency for foreign currency for residents =

b) the possibility of exchanging the currency of a given country for a foreign one for non-residents

2.9. What is external currency convertibility?

a) the possibility of exchanging national currency for foreign currency for residents

b) the possibility of exchanging the currency of a given country for a foreign one for non-residents =

2.10. What type of ruble convertibility is in effect after Russia joins Article VIII of the IMF Charter?

a) full convertibility

b) convertibility for current international transactions =

c) internal convertibility

d) external convertibility

2.11. Which article of the IMF Charter provides for the obligation not to impose restrictions on current international transactions?

a) Art. VIII =

2.12. What obligations do countries that have acceded to Art. VIII of the IMF Charter?

a) do not introduce any currency restrictions

b) do not introduce restrictions on current international transactions =

c) not to introduce restrictions on international transactions related to the movement of capital

2.13. Who is the issuer of SDRs?

a) European Central Bank (ECB)

2.14. Who is the issuer of the euro?

2.15. Does the IMF regulate restrictions on current international transactions?

2.16. Does the IMF regulate restrictions on international transactions related to the movement of capital?

2.17. Can SDRs be issued in cash?

2.19. Establish a correspondence between the type of currency convertibility and the regime of currency restrictions

	Types of Convertibility
Currency restrictions regime	Full convertibility	Convertibility for current international transactions	External convertibility	Internal convertibility
1. There are no restrictions on current international transactions
2. There are no restrictions on international transactions related to the movement of capital
There are no restrictions on resident transactions
4. There are no restrictions on transactions of non-residents

2.20. What is an exchange rate?

a) the value of the national currency

b) purchasing power of the monetary unit

c) the price of a monetary unit of one country expressed in the monetary unit of another country (or in an international monetary unit) =

d) the ratio of currencies by their gold content

e) the ratio of currencies according to their purchasing power

2.21. What is monetary parity?

b) ratio of currencies by their metal content =

d) currency ratio

2.22. What is gold parity?

a) the official gold content of the monetary unit

b) ratio of currencies by their gold content =

c) the ratio of currencies according to their purchasing power

d) currency ratio

2.23. What is Purchasing Power Parity (PPP)?

a) purchasing power of a currency

b) the ratio of currencies by their gold content

c) the ratio of currencies according to their purchasing power =

d) currency ratio

2.24. What is foreign exchange intervention?

a) purchase of securities by the central bank

b) sale of securities by the central bank

c) purchase of foreign currency by the central bank =

d) sale of foreign currency by the central bank =

2.25. What are the features of a floating exchange rate regime?

a) the rate is set by the central bank

b) the rate is set by commercial banks - operators of the foreign exchange market =

c) the exchange rate does not depend on supply and demand for currency

d) the exchange rate changes under the influence of supply and demand for currency =

2.26. What are the features of a fixed exchange rate regime?

a) the rate is set by the central bank =

b) the rate is set by commercial banks - operators of the foreign exchange market

c) the rate does not depend on supply and demand for currency =

d) the exchange rate changes under the influence of supply and demand for the currency

2.27. What is the exchange rate regime?

a) currency ratio

b) the price of one country’s monetary unit, expressed in monetary units another country

c) the procedure for establishing exchange rates between currencies =

d) setting the exchange rate

2.28. What is a currency quote?

a) currency ratio

b) the procedure for establishing exchange rates between currencies

c) the price of a monetary unit of one country expressed in monetary units of another country

d) determining the proportions of currency exchange =

2.29. What is a direct currency quote?

a) quotation at which the rate of a unit of foreign currency is expressed in national =

b) quotation at which the rate of a unit of national currency is expressed in foreign

2.30. What is a reverse (indirect) quotation?

a) quotation at which the rate of a unit of foreign currency is expressed in national

b) quotation at which the rate of a unit of national currency is expressed in foreign currency =

c) official currency quote

2.31. What is the foreign currency buying rate?

a) the rate at which the bank is willing to buy foreign currency =

b) the rate at which the bank is willing to sell foreign currency

c) the rate at which a bank client buys foreign currency from him

2.32. What is the foreign exchange selling rate?

a) the rate at which the bank is willing to buy foreign currency

b) the rate at which the bank is willing to sell foreign currency =

c) the rate at which a bank client sells foreign currency to him

2.33. What is a cross rate?

a) exchange rate of a unit of national currency, expressed in foreign currency

b) rate of a unit of foreign currency expressed in national currency

c) the ratio of two currencies, which follows from their rates in relation to a third currency =

2.34. At what rate does the client sell foreign currency to the bank?

a) at the purchase rate =

b) at the selling rate

c) at the exchange rate

2.35. At what rate does the client buy foreign currency from the bank?

a) at the purchase rate

b) at the selling rate =

c) at the exchange rate

2.36. Who benefits more from using letter of credit form calculations?

a) exporter =

b) the importer

2.37. Who benefits more from using the collection form of payment?

a) to the exporter

b) importer =

2.38. Who instructs the bank to open a letter of credit?

a) exporter

b) importer =

2.39. Who gives the bank a collection order?

a) exporter =

b) importer

2.40. Establish compliance of the exchange rate regime with the period of its validity in Russia

Currency regime	to midday 1992	from ser. 1992 to mid. 1995	from ser. 1995 to mid. 1998	From ser. 1998 to present
I. Mode fixed rate
II. Currency band regime
III. Floating rate mode

SECTION 3. Credit and banks

3.1. Is loan capital a capital function?

3.2. Is loan capital capital - property?

3.3.Are the growth rates of loan and real capital consistent?

3.4.What two parts does the profit received from loan capital split into?

a) percentage =

b) business income =

c) depreciation

d) foreign loans

3.5.How is the interest rate determined?

a) as the ratio of the loan amount to the amount of the lender’s capital

b) as the ratio of the amount of annual income to the amount of capital lent =

c) as the ratio of annual income to costs

3.6.What are the main sources of loan capital formation?

a) foreign loans

b) sale of excess inventories

c) profit =

d) depreciation =

d) savings of the population =

e) monetary savings of the state =

3.7.Which capital circulation leads to the formation of temporarily free Money(money capital)?

a) trading

b) industrial =

c) loan

3.8. Is there a connection between the movement of loan and industrial capital?

3.9.What is the price of the loan?

and money

b) profit

c) loan interest =

3.10.What is the place of non-bank financial institutions in the loan capital market?

a) component of the credit system =

b) component stock market valuable papers

c) an integral part of the banking system

3.11. Which non-banking financial institutions have long-term capital?

a) insurance companies =

b) financial companies

c) credit unions

3.12. Which non-bank financial institutions finance installment sales of goods?

a) credit unions

b) savings and loan associations

c) financial companies =

3.13. Which non-bank financial institutions provide mortgage lending?

a) credit unions

b) savings and loan associations =

c) financial companies

3.14. How does the abbreviation “PIF”, which often appears in modern Russian economic publications, stand for?

a) industrial innovation fund

b) mutual fund =

c) government innovation fund

d) consumer investment fund

3.15. Establish the correspondence between the types of non-banking financial institutions and their forms of attracting financial resources?

Correct answer: 1 - B; 2 - B; 3 - A; 4 - A: 5 - B; 6 - B: 7 - G.

3.16. What is the main point of the naturalistic theory of credit?

a) credit - movement of money

b) credit - movement of natural goods =

3.17. What is the mistake of representatives of naturalistic theory?

a) credit depends on the movement of natural goods

b) did not understand the essence of loan capital as an isolated part of industrial capital in monetary form =

3.18. What is the main position of capital creation theory?

a) credit creates capital =

b) credit is the movement of money

3.19. What is the main mistake of capital creation theory?

a) credit and capital are the same concepts =

b) credit - movement of loan capital

3.20.In what theories was capital creation theory developed?

a) in the theory of marginal utility

b) in Keynesianism =

3.21. What's happened banking system?

a) a set of financial institutions

b) a set of banks and non-banking financial and credit organizations

c) a set of banks in their interrelation =

3.22.What is characteristic of a one-tier banking system?

b) all banks perform similar functions =

c) strict separation of functions of central and commercial banks

3.23.What is characteristic of a two-tier banking system?

a) there is one bank in the country

b) all banks perform similar functions

c) strict separation of functions of central and commercial banks =

3.24.What are the main instruments of monetary policy?

a) putting money into circulation

b) change in the central bank interest rate =

c) lending to enterprises

d) open market operations =

e) change in the required reserve ratio =

e) lending to the state

3.25What is a policy of credit expansion?

a) the policy of the central bank aimed at increasing the exchange rate

b) central bank policy aimed at reducing inflation rates

c) central bank policies aimed at reducing credit and the money supply

d) central bank policy aimed at expanding credit and money supply =

3.26.What is a credit restriction policy?

a) the policy of the central bank aimed at reducing the exchange rate

b) central bank policies aimed at stimulating production

c) central bank policy aimed at reducing credit and money supply =

d) central bank policies aimed at expanding credit and money supply

3.27.Which channels are used to issue banknotes?

a) loans to banks =

b) loans to enterprises

c) loans to the government =

d) bank and government deposits

e) purchase of securities =

e) issue of bills

3.28.What is foreign exchange intervention?

a) purchase - sale by the central bank of foreign currency =

b) purchase - sale by the central bank of government securities

c) depreciation of the exchange rate

d) increase in the exchange rate

3.29.What operations relate to lending operations of the central bank?

a) loans to businesses

b) loans to the population

c) loans to banks =

d) purchase of government bonds

e) issue of bills

e) issue of banknotes

g) loans to the government =

3.30. What is bank liquidity?

a) guaranteed placement of the issuer’s securities on agreed terms

b) the bank’s ability to meet its obligations in a timely manner =

c) the bank’s ability to ensure timely repayment of issued loans

3.31.How is the current liquidity ratio determined?

a) as the ratio of liquid assets to demand liabilities

b) as the ratio of liquid assets to liabilities on demand and for a period of up to 30 days =

c) as the ratio of highly liquid assets to the total amount of bank liabilities

3.32.How is the general liquidity ratio determined?

a) as the ratio of liquid assets to bank capital

b) as the ratio of liquid assets to liabilities

c) as the ratio of liquid assets to total assets =

3.33. The functions of the bank include:

a) credit intermediation =

b) creation of means of payment =

c) loans to enterprises

d) accepting deposits

3.34. By affiliation authorized capital banks are divided into:

a) universal

b) shareholders =

c) shares =

d) specialized

3.35. TO active operations commercial bank include:

a) purchase of shares =

b) sale of shares

c) sale of bonds

d) buying bonds =

e) loans to the population =

3.36. Which of the following operations are related to passive operations commercial banks?

a) purchase of government bonds

b) issue of banknotes

c) issue of shares =

d) acceptance of deposits =

d) purchase of shares

3.37. Is it permissible to issue shares to increase the bank's capital?

3.38. Leasing is:

a) long-term rental of machinery, equipment, real estate =

b) assignment of claims

c) property management

3.39. An operation is considered factoring if it includes:

A) short-term lending, equipment rental and risk insurance;

b) lending in the form of prepayment of debt claims, maintaining accounting supplier, collection of his debt =

c) risk assurance, property management.

3.40. What type of operations do the following forms correspond to:

		factoring
I. confidential
II. operational
III. financial
IV. testamentary
V. returnable
VI. convection Please let us know.

- This economic phenomenon, characterized by an increase in prices for goods and services, which is caused by unjustified credit expansion. Phenomenon economic inflation can be observed when the state, to cover the shortage in state budget often takes out loans.

In Russia, the phenomenon of economic inflation was observed in 1998, at a time when it was announced and the government refused some loan obligations. Then serious problems arose in the country's economy. The Russian segment has lost investment from abroad, which has had a deplorable effect on the entire economic sector.

Inflation and

In fact, this phenomenon is characterized by the hidden issue of money. This leads to poor relations between the subjects of credit relations, and, as a consequence, negative consequences in the economy. Over the past years, the Russian government has been concentrating reserves financial resources in foreign currency. These resources were created with the aim of preventing and resolving unforeseen difficult situations in credit sector and in order to prevent the development of inflation.

Some experts in financial sector The concept of credit inflation refers to the process of on-lending to citizens. Modern relationships in the field of lending are complicated by many problems caused by the fact that Russians apply for several loans at once, but due to the unstable financial situation are unable to repay their debt obligations on time. In this regard, conflicts and litigation arise between borrowers and lenders, which leads to deprivation of property. Therefore, choosing the most favorable loan, you should pay attention to interest rate. It should exceed the inflation rate at the current stage.

Even given the difficult situation in the economic sector, modern stage development of credit relations, the government, as far as possible, takes measures that help prevent the development of credit inflation trends.

Credit policy in conditions of inflation is necessarily tightened by the state, Central Bank and other financial institutions.

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