What does it mean to break the silver root?

The situation of currency and capital circulation in the financial market**.

Yingen, pronounced yíngēn, means referring to the old Chinese custom name for the state of capital in the financial market.

Before the abolition of the two yuan and the change of yuan, China's financial system was the silver standard, and the market transactions mostly used silver taels, so it was customary to call the first monetary fund "silver root".

If there are many borrowers and few lenders in the market, that is, the supply of funds in the market is less than the demand, it is called "tight money" or "tight money"; On the contrary, if there are many lenders and few borrowers in the market, that is, the supply of funds in the market is greater than the demand, it is called "monetary loosening" or "monetary loosening".

In financial business activities and related theoretical research, this idiom is still used to reflect the supply and demand of market funds.

Silver, also known as base money and high-energy money, refers to the supply and demand of funds in the financial market, and it is a debt certificate issued by a bank, which is manifested as the reserves of commercial banks and the currency held by the public.

The formula is expressed as b=c+: base currency; c: Cash; r: Deposit reserves of commercial banks in ** banks.

The role of the silver root:

It is directly manifested as the liability of the bank, and is created by the asset business of the bank, which is the source of the existence of credit money.

For example, if there is a sum of money that cannot be explained, and someone asks to see your recent accounts, you need to not show this amount on the statement that you pull out, then use the flow of money to offset the money to the back!

It refers to the turnover and circulation of money in the market. The market needs a lot of currency and a small amount of circulation, which is called a tight bank, and the market needs a small amount of money and a large amount of circulation, which is called a loose currency.

Introduction:

Money, by its very nature, is a contract between owners about the right of exchange, and the different forms of money are essentially unified. In the past, due to people's lack of understanding of the nature of money, they mistakenly divided money into different types from different angles, for example, according to the commodity value of money, it was divided into two categories: debt money and non-debt money.

According to whether the exchange ratio of *** is agreed, it is divided into convertible currency and non-convertible currency and so on.

In terms of form, money can be divided into physical money and formal money according to the commodity value of money, and physical money itself is a special commodity, including the amount of value, such as sheep, ***, etc.; Whereas, formal money itself has no quantity of value, its value is contractually agreed, only contractually valued.

The two forms are different, but they are unified in nature, that is, they are both agreed to be used as a medium of exchange, and both have contractual value. The purchasing power of money is determined by the contractual value of money, but the purchasing power of physical money is also affected by the value of its own goods, which is usually less than its contractual value as money.

1. Monetary refers to the supply and demand of funds in the financial market. In the old days, China used the silver standard, and the market used silver for earthly transactions, so it is customary to call the ** of funds as silver.

2. If there are more borrowers and fewer lenders in the market, that is, the supply of funds in the market is less than the demand, it is called "tight money" or "tight money"; On the contrary, if there are many lenders and few borrowers in the market, that is, the supply of funds in the market is greater than the demand, it is called "monetary loosening" or "monetary loosening".

3. At present, this idiom is still used to reflect the supply and demand of market funds in the study of financial business and related theories.

Monetary refers to the supply and demand of funds in the financial market. In the old days, China used the silver standard, and silver was used in market transactions, so it was customary to call the ** of funds as silver.

If there are many borrowers and few lenders in the market, that is, the supply of funds in the market is less than the demand, it is called "tight money" or "tight money"; On the contrary, if there are many lenders and few borrowers in the market, that is, the supply of funds in the market is greater than the demand, it is called "monetary loosening" or "monetary loosening".

At present, this idiom is still used in financial business activities and related theoretical research to reflect the supply and demand of market funds.

Refers to money in the financial markets**. Because China used the silver standard before the fiat currency reform in 1935, market transactions generally use **, so it is customary to call capital ** as silver. The monetary system is divided into tight and loose, and the judgment is based on the supply and demand of funds.

If the market is in short supply, it is called "tight money" or "tight money"; There is an oversupply of funds in the market, which is called "monetary looseness" or "monetary loosening".

In modern economic life, the word money is often used to refer to the monetary policy of the bank. The monetary policy adopted by a country's ** bank or monetary authority to reduce the supply of credit, raise interest rates, and eliminate inflationary pressures caused by excessive demand is called monetary tightening. On the other hand, monetary policy adopted to prevent economic recession by increasing the supply of credit, lowering interest rates, and increasing investment and driving economic growth is called monetary easing.

Both monetary tightening and monetary easing are achieved through certain monetary policy tools, such as open market operations, adjustment of statutory reserve ratios, and rediscount rates. If the monetary system is too tight or too loose, it will have an adverse impact on the economy, so it is very necessary to adjust the monetary system in a timely and appropriate manner. Money refers to the circulation of money in the market.

Monetary tightening is the act of the People's Bank of China taking a series of measures to reduce the amount of money in circulation when the market needs less money and the circulation is large.