The issue of cash

The issue of cash - as a rule, the monopoly of central banks, which were carried out as part of non-cash issue, which, together with cash and a simplified form of central bank money - the monetary base. The monetary base is part of the liabilities of the central bank. The monetary base in a narrow definition - in cash outside banks - M0 and offices of commercial banks, as well as the accounts of the required reserves in the National Bank of Ukraine, the broad definition of these components add funds to deposit accounts, accounts of commercial banks repo National bank and liabilities of the National Bank of Ukraine on the back of the securities issue. The monetary base of the IMF methodology consists of the following combination: - Net international reserves, calculated as the difference between gross international assets and liabilities of monetary authorities - Net domestic assets - net credit to government, commercial banks and other assets. Money is included in cash (in the broadest sense) have high liquidity and reflect the ability of the central bank to fulfill its financial obligations, and sometimes they are called central bank money, the state at the national money. Modern monetary emission must credit and fiduciary (not provided) character as the main channel of issue is the issuance of emission credits by the central bank at which the increase in money balances in bank accounts and the corresponding increase in the money supply. The main channel of withdrawal from circulation - repayment of equity loans, respectively. In foreign countries, said deposit and issue a check, because the issuance of emission credits generated deposits (residue) in customers' accounts for the issuance of checks, servicing payment transactions deposits formed in different ways. This is the "real" contributions, which are created by making real money account - cash, noncash proceeds by bank transfer, based on receipts, bills of exchange. When a bank issues a loan to the client, the movement of real money initially is not happening in the asset balance sheet loan account is opened, which (debit) reflected the amount of the loan and the amount of liabilities account () is credited to the account and forms the so-called This style of deposit . That is, the bank shall issue, create, make money with a loan and enrolls them in escrow (settlement) by the client. The mechanism of non-cash issuance of central bank balance sheets in the form of book-entry simplified as follows (A - active, D - liabilities) (Table 1.1). Topic: The mechanism of emission