1. The main channels through which the central bank releases money to the society include:
1. Each unit receives cash from the bank and pays employee wages;
2. To the rural areas Or farmers’ expenditures on purchasing agricultural and sideline products;
3. Expenditures on purchasing industrial and mining products and handicrafts;
4. Fiscal credit for agriculture;
5 , Withdraw savings deposits from the bank.
2. Currency injection and withdrawal:
Withdrawal indicates that cash flows from the market back to financial institutions, while injection indicates that cash flows from financial institutions into the market. The cash income and expenditure of financial institutions to the whole society are offset. When the income is greater than the expenditure, it is called currency withdrawal; when the income is less than the expenditure, it is called currency injection. The balance of payments for a certain period within a year is called the net withdrawal of money or the net injection of money.
Extended information:
Currency injection is symmetrical to currency withdrawal, which means that banks invest a certain amount of cash according to market currency circulation needs. In our country, it is carried out in a planned manner based on the needs of production development and commodity circulation expansion.
The main channels for currency injection include: wages and other expenditures for individuals; financial credit expenditures for rural areas; administrative expenses; procurement expenditures, that is, the purchase of agricultural and sideline products, handicrafts and some minerals from rural areas. product. Currency injection must be strictly controlled. The time, quantity and amount of currency injection in each region must be determined according to the needs of production development and commodity circulation expansion.
Baidu Encyclopedia—Currency Investment