1. 2. Currency is the product of market exchange and is a special commodity separated from commodities to serve as general equivalents. Historically, money emerged much later than commodities. Currency is the product of the development of commodity exchange to a certain stage.

The creation of currency has gone through four stages:

(1) Accidental barter - the first stage (2 sheep = 1 stone ax)

(2) Expanded barter exchange - the second stage (2 sheep = 1 stone ax

=1 bag of rice

=1 piece of cloth

=3 knives

=……)

(3) Exchange with general equivalents as the medium (2 sheep=

1 bag of rice=

3 knives =

1 piece of cloth =

... =1 stone ax General equivalent - separated from other commodities, can be combined with everything else Commodities that are exchanged for each other and reflect the value of all other commodities)

Compensation, profit, account, loan, purchase, credit, etc. indicate that shells once served as general equivalents in ancient my country,

Disadvantages: ① Different commodities that serve as general equivalents in different regions and different periods limit the further development of the commodity economy;

② These things are often large in size, low in value, inconvenient to carry and store, difficult to divide, etc.

p>

Finally, the general equivalents are concentrated in precious metals-gold and silver

(4) Gold and silver are fixed as general equivalents, producing money because gold and silver have small size, large value, easy to carry, It has the advantages of long-term storage, uniform texture, and easy division, so it is most suitable to be used as a general equivalent.

Evolution of currency form:

{1} Physical currency (turtle shells, sea shells, clam beads, leather, rice, cloth, livestock, farm tools, etc. have all served as physical currency, Among them, there are two types that have a longer history and greater influence: one is shell coins, and the other is grain and silk.

Shell coins are one of the earliest currencies in China. They are produced in the Nanyang Sea. Shell is the currency material. This kind of seashell was originally used as an ornament. Because it is durable, valuable, easy to carry, and has natural units, it is used as currency. China has used shell coins for a long time, starting from the Yin and Zhou Dynasties to the abolition of shell coins after Qin Shihuang unified China, and it lasted for more than a thousand years. You may think that it takes a powerful mechanism to make people accept shells as a general equivalent, but I think it is due to the habit of commodity exchange.

{2}Metal currency{3}Paper currency{4}Credit currency{5}Electronic currency

3. 5. High-energy currency, also known as "monetary base" It is a currency that can expand or contract the money supply through the deposit and loan business of commercial banks.

The base currency of Western countries includes the sum of the deposit reserves (including statutory reserves and excess reserves) deposited by commercial banks into the central bank and the cash held by the public.

It is also called high-energy money because of its ability to multiply or shrink the total money supply. It is a debt certificate issued by the central bank and is expressed as the deposit reserve (R) of commercial banks. and publicly held currency (C).

Base currency = deposit reserves, excess reserves, cash in stock in the banking system, cash in hand by the public

Deposit reserves: refers to the national regulations that professional banks must raise part of their deposits in accordance with the prescribed ratio. Reserve funds formed by paying to the Central Bank (People's Bank of China). Including statutory deposit reserves and excess deposit reserves.

In order to meet customers’ cash withdrawal needs, depository financial institutions maintain certain cash reserves. But maintaining cash reserves is a burden on depository institutions. Because this part of cash has no interest income, and it has to pay storage fees, deposit interest and employee wages, etc., so as a financial institution aiming to make profits, the rational action is to minimize cash reserves, especially when there is a good This is especially true when it comes to speculative opportunities.

Therefore, deposit reserves are reduced, and as a result, bank liquidity crises often occur. Therefore, various countries have generally established deposit reserve systems to force depository monetary and financial institutions to deposit reserves into the central bank to ensure the liquidity and liquidation of depository monetary institutions' funds. ability.

The form of existence is the deposits deposited by commercial banks into the central bank. They cannot be short-term figures, but real banknotes.

4. Central bank balance sheet:

1 Assets 2 Liabilities

Discounting and lending Cash in circulation

Various securities Deposits

Gold foreign exchange reserves Other liabilities

Other assets Capital items

3 Total asset items 4 Total liabilities and capital items

Among them Liability items:

(1) Cash in circulation. It refers to the cash and auxiliary currencies issued by the central bank and held by the public and in the inventory of various financial institutions. It accounts for the largest proportion of liabilities.

(2) Various deposits. Including deposits from commercial banks and other financial institutions, deposits from government departments, foreign deposits, etc. Among them, commercial bank deposits account for the largest proportion.

(3) Other liabilities. Liabilities not included in the above liability items.

(4) Capital projects. The central bank's own capital includes equity, surplus balances and fiscal appropriations.

Asset items:

(1) Discounts and loans. Including rediscounts and re-lending by the central bank to commercial banks, as well as loans to the Ministry of Finance and other foreign financial institutions. Among asset items, discounts and loans occupy a very prominent position.

(2) Various securities. Mainly refers to government bonds held by the central bank and foreign government bonds. This project accounts for a significant proportion of assets in major Western developed countries.

(3) Gold foreign exchange reserves. Assets formed by central bank purchases of gold, foreign exchange, and Special Drawing Rights from the International Monetary Fund.

(4) Other assets. Refers to assets not included in the above three items, such as land, equipment, and collections.

I don’t know if my answer can satisfy you. If there are any mistakes, please forgive me. Welcome to discuss with me.

Well, your inquiring spirit is indeed valuable, but there is one thing I don’t know if you know. If the deposit reserves of commercial banks with the central bank do not meet the legal standards, commercial banks can conduct inter-bank lending. That is to say, no matter what form the reserve deposits are in, they must meet a certain quantity standard and the owner must be Central bank, so it doesn't make sense in what form it exists, it could be a deposit or a number on a check.

For 5: The question you want to ask may be how the newly issued currency by the central bank enters the commercial banks and thus flows into the economic operating system, right?

The central bank is the currency issuing authority. The newly issued currency is lent by the central bank to commercial banks at a discount rate. Commercial banks expand the central bank's base currency through lending business. The creation of base money provided by the central bank and deposit money in commercial banks is a relationship between source and flow.

The following is the process of currency creation by commercial banks:

First make the following assumptions:

(1) The public does not hold currency;

(2) All the public’s income is deposited in banks in the form of demand deposits;

(3) The statutory reserve ratio is 20;

(4) Commercial banks do not exist Excess reserves.

Suppose the central bank buys a government bond for $1,000 and writes a check for $1,000 to the bond holder. The bond holder deposits this bond with Bank A, and Bank A can increase the deposit by US$1,000. If the statutory reserve ratio is 20, then Bank A's deposit reserves will increase by 1,000 x 20-200 US dollars, and the loan amount will increase by 1,000-1,000 x 20-2800 (US dollars).

The person who got the loan deposited the $800 in Bank B. Bank B can increase deposits by US$800, increase deposit reserves by 800 x 20 =160 (US$), and increase loans by 800-800 x 20-640 (US$).

The person who gets the loan deposits the $640 in Bank C. Bank C can increase the deposit by $640, increase the deposit reserve by 640 x 20 to 128 (USD), and increase the loan by 640 to 640 x 20 = 512 ( Dollar).

This kind of deposit and loan process will continue continuously.

It may be a bit verbose, but this is my understanding of your question. I don’t know if it will be helpful to you.