2. How is the Colombian monetary system constructed? What policies govern the Banco De Republica? How are that and the Federal Reserve in the USA similar and different?
Colombian Monetary System
A monetary system is a set of procedures gathered together that a government uses in order to provide income or money to the economy of the country. It consists on a central bank and the commercial banks. The Colombian monetary system is directed or administrated by "El Banco Central" or "Banco De La Republica". This central bank is in charged of generating the physical money, controlling and supervising the amount of money. Buying and selling actions called "OMAS" and supervising the bank system of the country.
"Banco De La Republica" includes two main divisons for their policies, the public and the private. The public policies that govern this central bank are: planning, regulating, and controling diverse areas of production that are key factors for the economy of the country. The public policies need to maintain limits over the private one. The private policies are the ones that include personal loans, personal agreements, and the general interest of particular people. The colombian Monetary system is similar to the U.S monetary system because they both focused on the protection, modernisation, liberation and well management of an organised economic system.
Works Cited:
"What Is a Monetary System?" What Is a Monetary System. N.p., n.d. Web. 04 Apr. 2014.
"Sistema Monetario Colombiano." Buenas Tareas. N.p., n.d. Web. 04 Apr. 2014
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