Money and Banking

Author: Wang Yuping
Publisher:
Publish Date: 2001-01-01
Features: All real monetary transactions in the national economy can be divided into five aspects:
1. Monetary transactions centered around households and individuals.
2. Monetary transactions centered around enterprises and other operational units.
3. Monetary transactions centered around the national finance, including government agencies, organizations, military units, schools, and other public institutions.
4. Monetary transactions with foreign sectors.
5. Monetary transactions centered around banks and other financial institutions.
The monetary transactions among these five sectors have a typical characteristic: you receive what I spend, and I spend what you receive, creating a continuous and interconnected flow, forming a long river of monetary circulation. Therefore, what is referred to as "monetary flow" is the sum of the movement of real money in the economic life.