Presentation on social studies "finance in economics". Finance in economics Other financial and credit institutions

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Lesson plan Introduction Banking system Financial institutions Inflation: types, causes and consequences Conclusion

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Introduction Finance is a set of economic relations in the process of using funds

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Banking system - a set of banks and other credit institutions and organizations operating in the country. Banking system CENTRAL BANK Commercial banks Other financial and credit institutions

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Main functions of the Central Bank: Implementing the monetary policy of the state Lending to commercial banks Ensuring the stable operation of the banking and financial systems Maintaining the stability of the national currency Storing reserves of cash and gold Banking system

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Types of commercial banks: Industry banks (serve certain sectors of the economy) Intersectoral banks (serve all sectors of the economy) Regional banks (serve certain regions of the country) Banking system

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Operations of a commercial bank: Passive – operations to mobilize monetary resources: accepting deposits; obtaining loans from other banks and the central bank; issuance of own securities Active - operations for the placement of funds: provision of loans of various terms and sizes Banking system

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Financial and credit institutions accumulate available funds and provide them to those who need additional capital or financial assistance Pension fund - a fund created by private and public companies, enterprises to pay pensions and benefits to persons making pension contributions to this fund Investment companies - financial - a credit institution that collects funds from private investors through the sale of their own securities Financial institutions

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Insurance companies are organizations that provide insurance services designed to compensate for damage and losses due to accidents. Stock exchanges specialize in the sale and purchase of securities. Interstate financial and credit institutions: (World Bank, International Monetary Fund, European Bank for Reconstruction and Development, etc.). They provide financing and lending to different countries, promote global trade, and assist in stabilizing the financial system. Financial institutions

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Inflation - The process of depreciation of money, which manifests itself in the form of a long-term increase in prices for goods and services (the volume of money supply increases significantly - the number of goods and services does not increase) Forms of inflation: Creeping inflation - inflation in which the rate of increase in prices for goods and services does not exceed 10-15% per year Galloping inflation - abrupt rise in prices Hyperinflation - inflation with a very high rate of price growth (more than 50% per month), the most severe form of economic crisis Inflation: types, causes and consequences

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Causes of inflation: -Demand inflation. It appears when demand exceeds supply, which leads to an increase in prices (the income of the population of enterprises grows faster than the real volume of goods and services) - Cost-push inflation occurs as a consequence of an increase in costs per unit of production. The level of production costs can be affected by changes in the amount of taxes on the manufacturer, an increase in salary, etc. Inflation: types, causes and consequences

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Anti-inflationary policy of the state: Long-term monetary policy - maintaining strict restrictions on annual increases in the money supply Reducing the state budget by increasing revenues and reducing state expenditures Anti-inflationary measures: - Stabilization and stimulation of production - Improving the tax system - Implementing measures to regulate prices and income Inflation: types , causes and consequences

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Finance plays a huge role in the structure of market relations and the mechanism of their state regulation. Conclusion

Lessons No. 15-16

SOCIAL SCIENCE

Grade 11

Social studies teacher of Kastoreni secondary school No. 1 Danilov V.N.

F finances in economics

Lesson Plan

• The concept of "finance"
• Banking system
• Other financial institutions
• Inflation: types, causes and consequences

The concept of "finance"

• Finance(from lat. financia- cash, income) - a set of economic relations that arise in the process of formation, distribution and use of centralized and decentralized funds of funds.

The concept of "finance"

• The most important concept in finance is budget.
• The verb finance means “to supply with funds.”
• Word finance often used in everyday life to denote money.

Types of finance

Public finance

Private finance

• International finance
• Public finance
• Municipal finance (local finance)

1. Personal finance and family finance

2. Small business finance, corporate finance (finance of enterprises, businesses), bank finance, finance of non-profit organizations

Financial institutions and organizations

• Ministry of Finance of the Russian Federation
• Federal Tax Service of Russia
• Federal Service for Financial Markets
• Central Bank of the Russian Federation
• Moscow Interbank Currency Exchange (MICEX)
• RTS Stock Exchange
• Siberian Interbank Currency Exchange

Financial markets

• Money market
• Currency market
• Stock market
• Derivatives market

Banking system

• Banking system- a set of different types of national banks and credit institutions operating within the framework of the general monetary mechanism.

Structure of the banking system

• In countries with developed market economies, two-tier banking systems have developed. The upper level of the system is represented by the central (issuing) bank.

Structure of the banking system

At the lower level there are commercial banks, divided into universal and specialized banks (investment banks, savings banks, mortgage banks, consumer credit banks, industrial banks, intra-industrial banks), and non-banking financial institutions (investment companies, investment funds, insurance companies, pension funds, pawn shops, trust companies, etc.)

Structure of the Russian banking system

Central Bank of the Russian Federation

Association of Commercial Banks

Non-bank credit organizations

Commercial banks

Foreign banks

Specialized banks

Universal banks

Bank branches

Bank representative offices

central bank

• central bank- an intermediary between the state and the rest of the economy through banks. As such an institution, it is called upon to regulate cash and credit flows using instruments that are assigned to it by law.

• The central bank is not always owned by the state. But even if the state does not formally own its capital (USA, Italy, Switzerland) or partially owns it (Belgium - 50%, Japan - 55%), the central bank performs the functions of a government body.
• In Russia, the Central Bank is considered an economically independent institution.

Main functions of the Central Bank

Issue of banknotes

Conducting monetary policy

Refinancing of credit and banking institutions

Conducting monetary policy

Regulation of the activities of credit institutions

Functions of the government's financial agent

Commercial banks

• Commercial Bank- a non-state credit institution that carries out universal banking operations for legal entities and individuals (settlement and payment transactions, attraction of deposits, provision of loans, as well as intermediary operations on the securities market)

• Interest rates on loans issued are higher than interest rates on deposits. The difference between these indicators is bank profit - margin . The epithet “commercial” in relation to a bank is conditional, because it means that the main goal of the organization’s activities is to make a profit. At the same time, there are banks that specialize more deeply in individual banking services.

Types of commercial banks

Industry banks – serve certain sectors of the economy (Gazprombank, Rosselkhozbank)

Interbranch banks – serve all sectors of the economy (Russian National Bank)

Regional banks – serve certain regions of the country (Mosbusinessbank)

Savings bank – has branches in all regions of the country and specializes in receiving and storing deposits from the population

• Bank operations- a closed list of transactions the right to perform which belongs to banks on an exclusive basis.

Traditional banking

• Passive Operations – banking operations aimed at attracting money to the bank; with their help, the bank generates resources for carrying out credit and other active operations. (Accounts and deposits)
• Active Operations – banking operations in which the bank is a creditor, placing its funds. (Issuing loans, etc.)
• Commission and intermediary operations – operations to provide relevant services on a commission basis. Such operations include: cash settlement operations, factoring (lending to the seller), leasing, trust (trust operations of the bank to manage the client’s property in his interests).

Attracting client funds with the provision of services

Passive Operations

(raising funds)

Attracting client funds without providing services

Raising funds from other sources

Operations carried out by the bank at its own expense and in its favor

Active Operations

(placement of funds)

Operations carried out by the bank on behalf of clients and at their expense

Operations carried out by the bank on behalf of clients and on a commission basis (“pure banking services”)

Active-passive operations ( commission and intermediary )

• All Bank operations and other transactions are carried out in rubles, and, if there is an appropriate license from the Bank of Russia, in foreign currency. The rules for carrying out banking operations, including the rules for their material and technical support, are established by the Bank of Russia.

Other financial institutions

Pension Fund

Investment companies

Insurance companies

Financial companies

Stock exchanges

Financial and credit institutions

Kind of activity

Pension Fund

Capital

Payment of pensions and benefits. Investing collected funds in the purchase of securities to increase the pension fund

Investment companies

Pension contributions

Sale of own securities to investors. Mediation between the borrower and private investor. Buying stocks and bonds

Insurance companies

Financial companies

Funds from private investors

Provision of insurance services for compensation of damage and losses caused by adverse events

Contributions from enterprises and citizens

Providing consumer credit and small loans to individual borrowers

Stock exchanges

Sale and purchase of securities

International financial and credit organizations

Financing and lending to different countries, promoting global trade

Inflation: causes, types and consequences

• Inflation(lat. Inflatio- inflation) is the process of reducing the value of money, as a result of which the same amount of money after some time can buy a smaller volume of goods and services. In practice, this translates into increased prices.

The mechanism of inflation:

• The total volume of goods that can be purchased with the money supply available in a given economic system may grow more slowly than the volume of the money supply, or even decrease - in this case, the cost of goods increases, and the value of money decreases.
• The ratio of the volume of goods and the volume of money is not directly related, but takes into account the speed of turnover of the money supply in a given system. With an increase in the speed of money turnover, this will be equivalent to an increase in the money supply without changing the commodity supply.

Causes of inflation

1. An increase in government spending, to finance which the state resorts to money emission, increasing the money supply beyond the needs of commodity circulation. This is most pronounced during war and crisis periods.

Causes of inflation

2. Monopoly of large firms on determining prices and their own production costs, especially in the raw materials industries.

Causes of inflation

3. The monopoly of trade unions, which limits the ability of the market mechanism to determine the level of wages acceptable to the economy.

Causes of inflation

4. A reduction in the real volume of national production, which, with a stable level of money supply, leads to an increase in inflation rates, since the same amount of money corresponds to a smaller volume of goods and services

Types of inflation

According to the rate of price growth

For reasons causing inflation

Open inflation

Suppressed inflation

Demand inflation

Supply (cost) inflation

Unbalanced inflation

Balanced inflation

Projected inflation

Unpredictable inflation

Adapted consumer expectations

• Demand inflation- is generated by an excess of aggregate demand compared to the real volume of production. (Shortage of goods)
• Supply (cost) inflation- means an increase in prices caused by an increase in production costs in conditions of underutilized production resources. Increasing unit costs reduces the volume of products offered by manufacturers at the existing price level.
• Balanced inflation- the prices of various goods remain unchanged relative to each other.

• Unbalanced inflation- prices of various goods change in relation to each other in different proportions.
• Projected inflation- this is inflation, which is taken into account in the expectations and behavior of economic entities.
• Unpredictable inflation- comes as a surprise to the population, since the actual growth rate of the price level exceeds the expected one.
• Adapted consumer expectations- a phenomenon associated with the deformation of consumer psychology. Extremely increased demand for goods allows entrepreneurs to raise prices for goods. (Demand creates supply).

Suppressed inflation

• characterized by external price stability (with active government intervention), but an increase in the shortage of goods, which also reduces the real value of money.

According to the rate of price growth

Creeping (moderate) inflation

Galloping inflation

Hyperinflation

Creeping (moderate) inflation(price growth less than 10% per year)

• Western economists consider it as an element of normal economic development, since, in their opinion, slight inflation (accompanied by a corresponding increase in the money supply) is capable, under certain conditions, of stimulating the development of production and the modernization of its structure. The growth of the money supply accelerates payment turnover, reduces the cost of loans, contributes to the intensification of investment activity and the growth of production. The growth of production, in turn, leads to the restoration of equilibrium between the commodity and money supply at a higher price level.

Galloping inflation(annual price increase from 10 to 50%)

• It is dangerous for the economy and requires urgent anti-inflationary measures. Prevalent in developing countries.

Hyperinflation(prices are growing at an astronomical rate, reaching several thousand percent per year, or over 100% per month)

• It paralyzes the economic mechanism and causes a transition to barter exchange. It is also characteristic of countries in certain periods when they experience a radical change in their economic structure.

Consequences of inflation

• Depreciation of savings
• Decrease in quality of goods
• Falling standard of living for government employees

Anti-inflationary measures of the state

• Stabilization and stimulation of production
• Improving the tax system
• Price and income regulation

“Money is like manure: if you don’t throw it around, it won’t be of any use.”

F. Hayek, Austrian economist, political scientist

Homework

• § 8, questions 1-8 pp. 102, tasks 1, 3

Slide 1

FINANCIAL SYSTEM
Social studies 11th grade Basic level
Codifier for social studies Chapter 2. Economics. Topic 2.6
The presentation was prepared by Olga Valerievna Uleva, teacher of history and social studies, School No. 1353

Slide 2

PLAN FOR STUDYING THE TOPIC:
ESSENCE OF THE CONCEPT OF FINANCE CENTRALIZED, CORPORATE AND PERSONAL FINANCE FUNCTIONS OF FINANCE distributive control regulating stabilizing fiscal stimulating 3. MAIN FINANCIAL INSTITUTIONS AND THEIR FUNCTIONS: Central Bank (CB) commercial banks insurance organizations mutual investment funds (MUIFs) non-state pension funds (NPF) stock exchanges and etc. DEPOSITORS AND BORROWERS (individuals and legal entities) LEGAL REGULATION OF FINANCIAL ACTIVITIES IN THE RF

Slide 3

a set of economic relations in the process of using funds; OR the totality of all monetary resources at the disposal of the state or economic entities, as well as the system of formation, distribution and use of such resources; OR the art and science of money management.
FINANCE
PUBLIC (state)
CORPORATE
PERSONAL
TASK: distribution and redistribution of social product and national income. Intermediaries are financial institutions.

Slide 4

FUNCTIONS OF FINANCE
DISTRIBUTION
CONTROL
REGULATORY
STABILIZING
FISCAL
STIMULATING
Gross domestic income is distributed and redistributed, thanks to which funds come to the disposal of the state, regions, municipalities and beyond
through finance, the entire progress of the distribution process is monitored, as well as the expenditure of funds received from the federal budget for their intended purpose
through finance (taxes, government loans, etc.) the state influences the production process
providing citizens with stable economic and social conditions
collection of taxes to solve economic and social problems. political and other tasks of the state and society
support for certain sectors of the economy through the investment of financial resources

Slide 5

MAJOR FINANCIAL INSTITUTIONS
Central Bank (CB) commercial banks insurance organizations mutual investment funds (UIFs) non-state pension funds (NPFs) stock exchanges, etc.
What is a social institution? What social institutions do you know?
A SOCIAL INSTITUTE is a historically established mechanism that provides a set of constantly repeating and reproducing social relations and social practices of people. “FACTORIES FOR THE REPRODUCTION OF PUBLIC RELATIONS” E. Durkheim.

Slide 6

the totality of banks and other credit institutions and organizations operating in the country.
BANKING SYSTEM -
Central Bank (usually there is only one)
There are many commercial banks

Slide 7

CENTRAL BANK
emission monopoly in relation to banknotes (only the Central Bank issues money); is a “bank of banks”, that is, a settlement center for the banking system, provides loans to it, and in some countries supervises the activities of banks; is the government's bank; carries out monetary regulation; stores the country's gold and foreign exchange reserves.
CENTRAL BANK (CB) is the main regulatory body of the credit system of a country or group of countries.
BASIC FUNCTIONS OF THE CB:
Central Bank of the Russian Federation (Bank of Russia)
Bank of England
US Federal Reserve
Goal: to prevent financial collapse in the country

Slide 8

COMMERCIAL BANKS
FUNCTIONS OF A COMMERCIAL BANK: accepting deposits and providing loans at bank interest; transactions with securities and currency; consultations on financial issues of companies and the population.
COMMERCIAL BANK (commercial bank) is a credit and financial organization serving enterprises and the population.
Goal: profit

Slide 9

INSURANCE COMPANIES - organizations providing insurance services designed to compensate for damage and losses due to accidents. NON-STATE PENSION FUNDS (NPF) - a fund created by private and public companies and enterprises to pay pensions and benefits to persons making pension contributions to this fund. MUTUAL INVESTMENT FUNDS (MUIFs) are a financial and credit institution that collects funds from private investors through the sale of their own securities. STOCK EXCHANGE - organizations specializing in the sale and purchase of securities. INTERSTATE FINANCIAL AND CREDIT INSTITUTIONS - (World Bank, International Monetary Fund, European Bank for Reconstruction and Development, etc.). They are engaged in financing and lending to different countries, promoting global trade, and assisting in stabilizing the financial system.
OTHER FINANCIAL INSTITUTIONS

Slide 10

LEGAL REGULATION OF FINANCIAL ACTIVITIES IN THE RF
Constitution of the Russian Federation, Civil Code of the Russian Federation, Budget Code of the Russian Federation, Tax Code of the Russian Federation Federal Law “On the Central Bank of the Russian Federation” Federal Law “On Banks and Banking Activities” Federal Law “On the organization of insurance business in the Russian Federation”, etc.
What laws regulate financial activities in the Russian Federation?

Slide 11

LET'S REPEAT:

Slide 12

QUOTE BOOK
Think before you invest, and don't forget to think after you've invested. (F. Doyle)
Money cannot buy one thing - poverty. Here you need to turn to the help of the stock exchange. (Robert Orben)
People with means think that the most important thing in life is love; The poor know for sure that the main thing is money. (Gerald Brenan)
An idealist is someone who helps others get rich. (Henry Ford)
Money must be managed, not served. (Lucius Annaeus Seneca)
Creating a balanced budget is like defending your virtue: you need to learn to say no. (Ronald Reagan)
A banker is a person who will lend you an umbrella when the weather is sunny, only to pick it up when it starts to rain. (Robert Frost)
Wall Street is the only place on Earth where people drive Rolls-Royces to ask advice from people who take the subway. (Warren Buffett)

Slide 13

GLOSSARY
FINANCE - the art and science of money management. Central Bank - CENTRAL BANK (central bank) is the main regulatory body of the credit system of a country or group of countries. COMMERCIAL BANK (commercial bank) is a credit and financial organization serving enterprises and the population. NON-CASH MONEY, DEPOSITS (deposits) - entries in bank accounts. REFINANCING RATE or DISCOUNT RATE – the interest rate at which the Central Bank provides loans to commercial banks.

Slide 14

Queen G.E. Economics: grades 10-11: textbook for students of general education institutions. M, Ventana-Graf, 2013 Kireev A.P. Economics: Textbook for grades 10-11 in general education institutions (basic level). M. VITA-PRESS, 2012 Baranov P.A. Social studies: Economics: express tutor for preparing for the Unified State Exam. M. Astrel. 2013
DISTANCE LEARNING:
MATERIALS USED IN PREPARATION OF THE PRESENTATION:
SITES FOR PREPARING FOR THE Unified State Exam:
http://www.ege.edu.ru/ - official portal of the Unified State Exam (exam calendar; codifier, specification, demo version; score conversion scale; personal account). http://fipi.ru is an open bank of Unified State Examination tasks. http://soc.reshuege.ru – a bank of Unified State Exam assignments, it is possible to check the answers, there are comments for all questions. http://stupinaoa.narod.ru/index/0-20 - here you can find detailed plans and assessment criteria for various topics in the social studies course.
http://interneturok.ru/ru/school/obshestvoznanie/11-klass/bchelovek-i-ekonomikab/finansy-i-kapital?seconds=0&chapter_id=350 – Internet Lesson “Finance and Capital” http://interneturok.ru/ ru/school/obshestvoznanie/11-klass/bchelovek-i-ekonomikab/bankovskaya-sistema?seconds=0&chapter_id=350 - Internet Lesson “Banking System”. https://www.youtube.com/watch?v=g71RKsjqN1U&index=12&list=PLtOS0Uj5KV7DRrJaRB1Ycrgfsxz-zjFZI – video lecture by Kotsar E.S. “Money, financial institutions, banking system” Part 2.
Makarov O.Yu. Social studies: Complete course. Multimedia tutor. St. Petersburg, Peter, 2012 http://ru.wikipedia.org

Development of the presentation "Finance in Economics" Social studies 11th grade, basic level. Lesson plan: Finance, money and its functions, banking system, Credit.

Bank(from Italian Banco - bench) - This is a financial organization that has concentrated temporarily free funds of enterprises and citizens for the purpose of subsequently providing them as debt or credit for a certain fee.

Bank functions

- Reception and storage of deposits (money or securities deposited in a bank) by depositors.

Issuing funds from accounts and performing settlements between clients.

Placing collected funds by issuing loans or extending credit.

Purchase and sale of securities, currency.

Regulation of monetary circulation in the country, including the release (issue) of new money (a function of the Central Bank only).

The banking system includes:

• Central State Bank - pursues state policy in the field of emissions, credit, and monetary circulation.
• Investment banks - specialize in financing and long-term lending, investing in industry, construction and other sectors, as well as in securities.
• Mortgage banks - provide loans secured by property, most often real estate.
• Commercial banks - carry out financial and credit operations on a commercial basis.
• Savings banks - attract and store available funds, cash savings of the population, paying depositors a fixed percentage, which increases with increasing storage period.
• Innovative banks - credit innovations, i.e. ensure the development of innovations and the introduction of scientific and technical achievements.

In the modern world, the most common form of banking entrepreneurship is commercial Bank.

View document contents
"Presentation for the lesson "Finance in Economics""

PLAN:

Finance

Money, its functions

Banking system

Other financial institutions

Credit

What is finance?

• Finance is (from Latin financia – cash, income) the totality of funds considered in their creation and movement, and economic relations determined by mutual settlements between economic entities.

• Finance is a set of economic relations in the process of using funds.

Where can we see finance moving?

When receiving a loan from a bank

Transfer of payments to the budget

Payment of insurance premiums

Settlements between enterprises

Remuneration of employees

Allocation of appropriations

Money, its functions

• Money is a commodity that serves as a universal equivalent.
• Money is a specific commodity of maximum liquidity.

in the form of a stock of value that is deferred consumption (have the same value both now and in the future)

allow you to express the cost of goods and services in monetary units

intermediary in the exchange of goods and services

perform important functions in international business transactions, the function of world money today is performed by currency

Instrument of payment

Means of address

Storage medium

Measure of value

in case of sale of goods with deferred payment (sale of goods on credit), payment of wages, taxes, rental payments

World money

Basic functions of money

Banking system

• Banking system – a set of banks and other credit institutions and organizations operating in the country.

• Bank
• Bank - (from Italian banco - bench) is a financial organization that concentrates temporarily free funds of enterprises and citizens for the purpose of subsequently providing them as debt or credit for a certain fee.

Bank functions

• Reception and storage of deposits (from the Latin Depositum - deferred) (money or securities deposited in the bank) of depositors.
• Issuing funds from accounts and performing settlements between clients.
• Placing collected funds by issuing loans or extending credit.
• Purchase and sale of securities, currency.
• Regulation of monetary circulation in the country, including the release (issue) of new money (a function of the central bank only).

Banking system

• In countries with developed economies, two-tier banking systems have developed: the top level is the Central Bank; lower level – commercial banks and financial institutions

investment funds

financial companies

banks

TOP LEVEL

CENTRAL BANK

mutual funds

OTHER FINANCIAL AND CREDIT INSTITUTIONS

COMMERCIAL BANKS

pension funds

Insurance companies

savings banks

LOWER LEVEL

The main difference between the Central Bank and other banks

An economically independent institution with the right to propose new laws to the Parliament of the Russian Federation

Only the Central Bank issues money: the issue of banknotes, which are currency - the Russian ruble

It has the largest monetary resources: international reserves - foreign currency, gold; internal reserves – required reserves of commercial banks.

Role of the Central Bank

Implementation of the monetary policy of the Russian Federation.

Lending to commercial banks.

Ensuring stable operations of banking and financial systems.

Maintaining the stability of the national monetary unit - the Russian ruble.

Storing cash and gold reserves.

Commercial banks

are

• a business enterprise organizing its own business.

directly serve

• enterprises, organizations, population, selling services to clients and making a profit

play a role

• financial intermediaries redistributing temporarily available funds

"workhorses" of the financial system

Bank operations

active operations passive operations

accepting deposits

provision

different

by timing

and sizes

loans

receiving

loans

release of own

tional prices

nal papers

Other financial institutions

Interstate

gift

new in-

institutes

Invest-

tional

companies

Pension Fund

Insurance

companies

Stock

exchanges

These are the World Bank, the International Monetary Fund (IMF), the European Bank for Reconstruction and Development, and the International Bank for Economic Cooperation. They are engaged in financiers. and loans. different countries, promote global trade, assist in stabilizing the financial system of developing countries, etc.

They specialize in buying and selling securities. Shares and bonds of commercial banks are placed here. They “pour” funds into highly profitable sectors of the economy, supporting their development.

It is created by private and public companies and enterprises to pay pensions and benefits to persons making pension contributions to this fund.

Financial and credit institution that collects funds from private investors through the sale of securities to them

Organizations providing insurance services. They use funds from special insurance funds (contributions from enterprises and citizens).

They accumulate free funds and provide them to those who need additional capital investments.

Specialized banks

Engaged in lending to certain areas and sectors of economic activity

Investment banks

Mortgage banks

They specialize in financing and long-term lending, investing in industry, construction and other sectors, as well as securities

Provide loans secured by property, most often real estate

Specialized banks

Savings banks

Innovative banks

Attract and store free funds, cash savings of the population, paying depositors a fixed percentage, which increases with increasing storage period

Innovations are credited, i.e. ensure the implementation of scientific and technical achievements

Credit

Credit(Latin Credit – he believes) – This is a loan in cash or commodity form provided by the lender to the borrower on the terms of repayment, most often with the borrower paying interest for using the loan.

The loan performs the following functions:

• With the help of credit, funds are redistributed between firms, regions and industries. This allows you to productively use temporarily free funds.
• credit makes it possible to replace real money in circulation with credit money (banknotes) and credit transactions (non-cash payments), which leads to a reduction in circulation costs.

Lending principles

Lending principles

• - Urgency – The bank provides the borrower with money for a specified period.
• - Payment– the bank provides money for temporary use only for a fee (interest on the loan).
• - Recoverability – The bank carries out work to assess the borrower's creditworthiness, i.e. opportunity to repay the debt on time.
• - Warranty – The bank, assessing the borrower's creditworthiness, requires collateral from him.

The current state of the Russian banking system

• Credit organizations began to strive for greater transparency and openness to clients.

• Advanced business models, new banking technologies (client-bank, money transfer systems, debit and credit cards, etc.), various types of lending (consumer, mortgage, etc.) are being introduced.

Homework:

Description of the presentation by individual slides:

1 slide

Slide description:

2 slide

Slide description:

CONCEPT: Finance is the totality of funds in their creation and movement and ALL economic relations arising from this. CONDITION: The economy and its development are possible only in the presence of a regulated and functioning FINANCIAL SYSTEM (more precisely, a FINANCIAL-CREDIT SYSTEM)

3 slide

Slide description:

Basis of the financial system Central Bank of Russia Various credit organizations Banking system Non-bank credit organizations Branches of foreign banks Commercial banks

4 slide

Slide description:

Financial institutions Part of the FCC, financial intermediaries whose main function is to accept deposits and lend money raised to the bank Mutual fund Insurance company Investment fund Pension fund

5 slide

Slide description:

Thesaurus Bank is a credit organization that attracts cash deposits from individuals and legal entities, invests raised funds in any business on its own behalf, opens and maintains bank accounts for legal entities and individuals; An insurance company is an organization specializing in concluding insurance contracts and servicing them. A mutual fund (investment company) is formed from the money of investors (shareholders) who receive a security for their share. The meaning of the fund is that shareholders entrust the management of their property to a specialized management company, which must use the fund’s property to generate profits, which are then distributed among the shareholders. A pension fund is a state or non-state organization that manages the pension funds received by it and ensures the right of citizens to pension provision. A mutual fund is a portfolio of stocks carefully selected and purchased by professional financiers with the funds of many small investors; the advantage for investors is a reduction in risk, since investments (contributed funds from investors) are distributed among a large number of different enterprises. A share, as well as a bond, a bill, a savings book, a check, a futures - all these are types of securities that give their owner property rights, primarily the right to receive income; This is a special capital (as a thing) that can circulate on a special market (the stock market) as a commodity and generate income for its owner.

6 slide

Slide description:

Functions of the bank: Reception and storage of deposits (that is, money or securities deposited in the bank) of depositors; Issuing funds from accounts and making payments between clients; Placement of collected funds by issuing loans or providing credits; Purchase or sale of securities, currency; Regulation of monetary circulation in the country, including the release (issue) of new money into circulation (ONLY the Central Bank!) Consultations on financial issues. Storing cash reserves and regulating the exchange rate (Central Bank only!) Functions of the banking system: banks. Types of banks: Central Bank; Commercial banks (by type of ownership - state, municipal, private, joint-stock, mixed; by territorial basis - local, regional, national, international); Universal banks; Specialized banks; Investment banks; Savings banks; Mortgage banks; Innovative banks Tasks of banks Regulating the balance of payments Regulating inflation Ensuring economic growth

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Thesaurus Inflation is the depreciation of paper money, manifested in the form of an increase in prices for goods and services, not ensured by an increase in their quality. Main reasons: -increase in government spending; -reduction of real production volume; Trade union monopoly; Monopoly of large firms. There are 2 types of inflation: demand inflation and cost inflation. Types of inflation (classification): -by the nature of the course - open and hidden; -depending on the rate of price growth - moderate (price growth 5-10% per year), galloping (from 10 to 20%), hyperinflation (price growth is unlimited - up to 1000%); -according to the degree of divergence in price increases for various product groups - balanced and unbalanced; -according to the degree of predictability of price growth - predictable and unpredictable. Stagflation is inflation accompanied by stagnation of production, high unemployment and a simultaneous increase in the price level. It has positive (for example, domestic public debt decreases, state tax revenues increase, when the national currency falls, exports may become cheaper, which allows for the expansion of foreign markets, and the cost of imports increases, reducing the competitiveness of foreign goods) and negative (depreciation of loans, disruption of the entire economic systems, negative impact on the population with fixed incomes, transition to barter relations, depreciation of money and the cessation of their functions, social tension and other) consequences. Ways to combat: -adaptation (adaptation) measures: income indexation, price level control, increasing the discount interest rate (refinancing rate); -anti-inflationary (reducing inflation): limiting the money supply, increasing the rate of required reserves, reducing government spending and social programs, increasing tax revenues to the budget.

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Functions of the banking system: non-bank credit organizations Types: Pension funds; Investment funds; Insurance companies; Investment companies; Pawnshops (institutions for issuing loans secured by movable property); Leasing companies and others. Functions: Banking operations for them are not the main, but an additional activity.

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Banks are the basis of credit relations. Credit is a loan in monetary or commodity form provided by the lender to the borrower on the terms of repayment, most often with payment by the borrower for the use of the loan. Credit principles: Urgency; Payment; Returnability; Guarantee Loan classification

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Loan classification Basis of classification Form of loan Its essence Method of lending Natural Loan objects – investment and consumer goods, raw materials, resources, industrial consumption items Monetary Objects – cash and capital, securities Loan term Short-term Loan issued up to 1 year Medium-term Loan from 2 to 5 years Long-term Loan from 6 to 10 years Long-term special Loan from 20 to 40 years Nature of lending Mortgage Provided in the form of a mortgage Consumer To individuals for an indefinite period, more often from 1 to 3 years, at a high percentage (up to 30%) Commercial Single business owners subjects to others in the form of selling goods with deferred payment, this is a loan in goods.

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Loan classification Basis of classification Form of loan Its essence Banking Provided by financial institutions to any business entity State The state gives a loan to private business Interstate (international) The selling party to the buying party in the form of an advance for the purchase of goods from the selling party

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Sources of business financing: -commercial bank loan; -someone willing to lend money; - a partner who agrees to bear part of the costs; -entrepreneurship support fund (non-profit, that is, non-profitable) financial organization that provides assistance to medium and small businesses in the interests of the state; -private investor; -investment fund; -leasing company; -venture fund Main sources of business financing In order for a business to develop, an entrepreneur must finance it, including through the Federal Tax Service.

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Thesaurus Money is a commodity of universal equivalent. Functions of money: -measure of value - the price of a product is expressed in money; -medium of exchange - money acts as an intermediary during the purchase and sale of goods; This function is associated with the appearance of paper money, which has no value of its own, but circulates at the value of real money. -means of accumulation – real money withdrawn from circulation, which is used as a means of storing value (only real money); - means of payment (when selling goods on credit); -world money – money in the form of gold and international means of payment. IF the amount of paper money in circulation exceeds the real amount of goods and services produced, inflation occurs

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From history During World War II, both Germany and Great Britain had plans to use “paper” weapons: each side printed banknotes of the other and planned to drop them in large quantities from airplanes over enemy territory. In 1992-1995. Russia experienced a period of extremely high inflation: the average annual rate of which exceeded 1000% in 1992 and did not fall below 100% until 1996. The average monthly inflation rate in these four years was 19.3%. What are the reasons for this development of events? In 1991, Russia inherited from the former USSR an economy with a significant cash overhang and suppressed inflation, characterized by rapidly rising aggregate demand and deficits, especially noticeable at the end of the Soviet era. Moreover, during the perestroika period, the budget deficit reached an extremely high level (19% of GDP in 1991). The decision to liberalize 90% of total prices in January 1992 resulted in prices skyrocketing by 245%, resulting in the elimination of the money overhang by the summer of that year. Efforts to tighten monetary policy during 1992-1994. failed This led to monetary policy getting completely out of control.

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