lOMoARcPSD| 50032646
1. What is the name of the Central bank of the USA, Vietnam, China?
Nêu tên Ngân hàng trung ương của Mỹ, Việt Nam, Trung QUốc?
USA: Federal Reserve System – Fed
Vietnam: the State Bank of Vietnam (SBV)
China: the People's Bank of China
2.How can monetary policy affect individual lives?
Bằng cách nào chính sách tiền tệ ảnh hưởng đến cuộc sống của từng cá nhân?
Monetary policy influences interest rates in the economy – like interest rates for housing
loans, business loans, and interest rates on savings accounts. Changes in interest rates
influence people's decisions to invest or consume, which ultimately affects economic growth,
employment, and inflation.
3. Who can control Monetary policy?
Ai sẽ điều khiển chính sách tiền tệ?
Thống đốc Ngân hàng Nhà nước (Governor of the State Bank)
4.Who can implement Monetary policy?
Ai sẽ thực hiện chính sách tiền tệ?
Central banks – monetary policy – commercial bank – individuals
5. What is the final destination of Monetary Policy?
Mục đích cuối cùng của CSTT là gì?
The ultimate goal of monetary policy is to achieve macroeconomic stability and growth
6. Which tool of Monetary policy is the most dynamic?
Công cụ nào của CSTT được sử dụng nhiều nhất?
Open market operations (OMO) - Flexibility, Adjustability, Immediate Impact
7. Which tool of Monetary policy represents the role of "the last resort of lender"?
Công cụ nào của CSTT thể hiện vai trò là người cho vay cuối cùng của ngân hàng trung ương? Discount rate
(Most monetary policy tools are always being used, and the strategies are simply adjusted as
economic conditions change. There is always some level of reserve requirement, reserves earn
interest, and discount rates always apply
The discount rate is the interest rate charged by a central bank to commercial banks and other
financial institutions for short-term loans. When banks face liquidity issues or need emergency
funding, they can borrow from the central bank at this rate) lOMoARcPSD| 50032646
8. List advantages and disadvantages of reserve requirement?
Nêu ưu điểm và nhược điểm của công cụ dự trữ bắt buộc? Advantages:
-Control Over Money Supply
-Ensures generous liquidity in the economy
-Maximizes lending opportunities and generates higher profits for banks
-Helps banking institutions avoid future contingencies and shortages of funds
-Increases depositor awareness of the bank’s financial performance and margins
-Facilitates money circulation and manages overall liquidity
-Enhances purchasing power by encouraging investment in government securities. Disadvantages:
-Slight changes in the cash-reserve ratio lead to major changes in the money supply
-Liquidity issues for banks with low excess reserves
-Reserves create limits on other investment or lending opportunities for banks
-Limits banks’ ability to respond to changing economic conditions
-Hides credit creation, particularly during economic expansion
-Impact on profitability, especially for smaller banks
-Disturbs interbank lending, concentrating reserves in a few large banks
-Compliance costs and administrative burden for banks
9. What factors influence the reserve requirement in Vietnam?
Some key factors that can impact the reserve requirement in Viet Nam :
-Monetary Policy Objectives: The primary goal is to manage inflation and stabilize the economy.
If there is a need to control money supply growth and curb inflationary pressures, the SBV may
increase the reserve requirement.
-Economic Conditions: For example, economic expansion or high credit growth --> the need for
liquidity management and financial stability may increase --> increase in mandatory reserve requirements.
-The liquidity position of banks also affects the reserve requirements set by SBV.
-International Reserves: Vietnam's international reserves play a role in determining its overall
monetary policy framework and can indirectly influence changes in domestic reserves requirements lOMoARcPSD| 50032646 as well
10. At present, what is the reserve requirement in the USA?
Hiện nay tỉ lệ dự trữ bắt buộc tại Mỹ là bao nhiêu?
0% (a policy implemented by the Federal Reserve in March 2020 to help support the economy
during the COVID-19 pandemic)