XI. Write a memo to your supervising teacher, in which you should comment on the envisioned monetary parameters, shown in the table

X. Make a chart using the following data, given by the NBU (20XX).

Cash Circulation and Settlements Sphere

IX. Read the passage below and explain the meanings of the words and phrases, which have been underlined.

The cash circulation and settlements sphere contains the fol­lowing key operations

- provision of the requirements of the country's economic development with cash in necessary volumes and optimum de­nominations of banknotes and coins in circulation;

- continuing the policy of rational limitation of settlements in cash between economic entities, and strengthening control of ap­propriate bodies over these entities, cash;

- further expansion of the sphere and increasing the volumes of cashless household settlements for goods and services and the improvement of their forms on the grounds of gradual introduction of elements of the national mass electronic payments system using electronic means of payment;

- book-keeping in compliancewith the international stan­dards as one of the instruments of reliability and authenticity of the banking system's information.

- Nominal GDP – UAH 124.1 million; fall in real GDP – 1%;

- budget deficit – 1% of GDP or UAH 1,240 million; its coverage from external sources in the amount of UAH 630 million, from external sources – YAH 610 million;

- inflation – to 19%.

Parameters of the monetary indices of Ukraine
Index	20XX	20XX	Changes, %
Monetary base, UAH mln
Monetary stock, UAH mln

Give your opinion of the following means, planned and used by the NBU:

Monetary parameters can change during 20XX depending on the situation in the monetary market.

The National Bank of Ukraine plans to achieve the determined monetary parameters by the following means:

- improving the structure of the credit emission, in particu­lar its more productive channeling;

- carrying out the quantitative control over the monetary stock dynamics which would correspond to the increase in the GDP forecasted level and a moderate inflation rate (10% monetary stock increase);

- stimulating processes of increasing household investments to the banking system by increasing guarantees of their return through introduction of mechanisms of deposit insurance and orientating commercial banks towards offering positive real interest rates on deposits;

- assisting in regaining confidence of domestic and foreign mar­kets' investors in further development and functioning of the state securities stock market as one of the main segments of cap­ital movement and an effective instrument of the monetary market management;

- increasing credit support of domestic producers by intensi­fying commercial banks' credit activity, and support by the NBU of commercial banks' liquidity using the refinancing system;

- stimulating the banks' investment activities, primarily in­creasing (he long-term crediting volumes due to providing financial stability and thus promoting the growth in volumes of long-term deposit investments of economic entities and population;

- protecting economic interests of entities of the monetary market.

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