Nobody downloaded yet

Money and the federal reserve system - Term Paper Example

Comments (0) Cite this document
Its instruments come in the form of feasible monetary policies that take care not only of any present crisis but also those of the future. A good…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.3% of users find it useful
Money and the federal reserve system
Read TextPreview

Extract of sample "Money and the federal reserve system"

Download file to see previous pages The Federal Reserve had always played an immense role in controlling the financially crucial situations ever originated in the USA. Its instruments come in the form of feasible monetary policies that take care not only of any present crisis but also those of the future. A good example is its mode of activities in the face of the recent global meltdown that not only helped in controlling the crisis but included measures to effectively control any aftermath. The present paper deals with the institution’s monetary policies which from time to time had acted like a shield against an economic crisis, for the country. 2
One of the commonest names which often come up as one of the strongest financial regulatory bodies in the world is that of the Federal Reserve. The Federal Reserve, often abbreviated as the Fed, being the apex financial institution of USA is responsible for designing the monetary policies of the economy and hence for controlling the flow of money in the nation. Since the amount of money supply is a decisive factor behind the credit availability and hence that of any inflationary developments in an economy, the importance of the institution cannot be slighted. Inflation can often have larger outcomes, ranging from severe unemployment to that of a financial crisis. Thus, there must be an institution in every nation entrusted with taking care of the vice; the Federal Reserve does the job in USA (Schenk, n.d.).
The Fed has been conferred the responsible of planning the monetary policies for USA since . Its basic objective had been to work-out a feasible solution given the prevailing economic condition of the economy so as to provide a brighter and better future to the countrymen. However, the string of the ultimate power of the bank is largely bestowed in the hands of the Congress. Recently though, on October 2008, the grips have been loosened a bit and the bank has been given the right to endow ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Money and the federal reserve system Term Paper”, n.d.)
Retrieved from
(Money and the Federal Reserve System Term Paper)
“Money and the Federal Reserve System Term Paper”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Money and the federal reserve system

The Federal Reserve System

...into the system and increases the excess reserves held by the banks besides increasing prices of the financial assets. By increasing money supply in the economy, FED therefore attempted to remove the concerns for liquidity in the market created as a result of credit crunch. Conclusion Federal Reserve System took two important steps in the wake of the current economic crisis in order to ensure that economy remains on track. By lowering the federal fund rate or discount rate, FED made borrowing cheap so that household consumption could be increased besides increasing the overall demand for the consumer credit. These steps...
3 Pages(750 words)Term Paper

The Federal Reserve System

...?Introduction The role of a central bank in any economy is to manage the monetary policy of the country while ensuring that it manages to achieve broader macroeconomic objectives. One of the key objectives of any central bank is therefore to ensure that inflation within economy remains under control. The flow of money within the economy therefore should be managed in such a manner that it supports the achievement of low inflation, economic stability as well as the low unemployment level within the economy. The Federal Reserve System or Fed is the central bank of US and is operating at both the federal as well as State level. Created in 1913 through Federal Reserve Act, it has served US as one of the leading economic policy making... as well...
8 Pages(2000 words)Term Paper

The federal reserve system

...The Federal Reserve System The Federal Reserve, or the central bank, is among the most powerful economic institution in the United States of America. The Federal Reserve was given the power over regulation of the value of money by congress. In simple terms, the Federal Reserve came into being by enactment of the Congress. Consequently, the Congress has the obligation of overseeing the monetary policy and the Federal Reserve. This paper analyzes the importance of the Federal Reserve and strategy in...
3 Pages(750 words)Essay

Federal Reserve system

...? Macro 11 College: Question one The Federal Reserve System (FED) is responsible for the implementation of the monetary policy by managing the balances that financial institutions have in Federal Reserve banks. Besides this control of money, FED supplies currency and supervises the banking system. The money supply which consists of the circulating currency and bank deposits needs to be controlled in order to balance the lending and borrowing capacity of the financial institutions. FED uses three tools to control the money supply: changing the reserve requirements, open market operations, and changing the discount rate (Tucker, 2010, pg.408). Changing the reserve requirements. The banking system is required to keep a certain amount... the...
5 Pages(1250 words)Essay

Money,banking and the federal reserve system

...Money, Banking and the Federal Reserve System Every world economy requires money to transact its operations. Money is a liquid asset applicable making transactions in acquisition of goods and services. There are several monetary forms present in the world today. The United States of America uses the monetary unit of a Dollar. The United States Treasury prints money bills for distribution to the banks in form of bank reserves. The banking system provides the platform for reserving money for distribution to the public. In order to ensure a balance of the...
7 Pages(1750 words)Essay

The Federal Reserve System

...The Federal Reserve System To provide the United s with a stable monetary and financial system, Congress established the Federal Reserve Bank System (Fed). The Federal Reserve Act of 1913 signed by Woodrow Wilson designated the Fed, the central bank, with the responsibility for establishing monetary policy. Monetary policy is the actions taken by the central bank to influence the availability and cost of money and credit to assist in promoting national economic goals. The Fed's monetary policy decisions affect the flow of money and credit in the economy....
3 Pages(750 words)Essay

U.S. Federal Reserve System

...US Federal Reserve System “The central banking system of United s was created in 1913 byUnited States congress in order to provide safer modes of monitoring and a flexible banking system” (Philadelphia, pp. 2). The Federal Reserve System is a government institution developed to monitor country’s economic policies including employment, supply of money and interest rate. Federal Reserve System operates like an independent entity to control public and private aspects and comprised of seven members elected by the senate and president on 14...
2 Pages(500 words)Research Paper

Federal Reserve Money Train Activity

...Scenario In 150 to 200 words, explain your reasoning for the way you are planning on using Reserve Requirements. Be sure to address the following: 1. How Reserve Requirements affect the economy 2. How your action will affect economic growth 3. Why it is important to increase economic growth 4. Your rationale for the use of Reserve Requirements At the end of the game, you will be provided with this information to give to your instructor. Answer: Reserve requirements are important for adjusting the flow of money in the economy. The reserve requirements can create and control inflation. The economy is very dependent on the ability of the...
2 Pages(500 words)Assignment

Federal Reserve System, Interest Rates and Money Supply (SLP)

...Impact of Interest Rate Changes Impact of Interest Rate Changes inserts his/her Impact of Interest Rate Changes The paper discusses how the recent changes in interest rates made by the Federal Reserve have affected any consumer buying decisions such as buying a new home, refinancing a home, financing a new car, saving more money in bank, etc. Income is a hybrid of savings and expenditures where savings and expenditures are in inverse relation to each other. Changes in major economic variables have a significant impact on the consumer spending. For example, higher interest rates increase the savings and affects consumer spending. According to Engels Laws, with the rise in income, the percentage of income spent on food decreases... but the...
2 Pages(500 words)Essay

Federal Reserve

...Federal Reserve Number: Introduction USA’s economy was faced by numerous issues/challenges during the spring (fromMarch up to May). Some of these challenges were inherited from the previous years particularly the famous 2008/2009 US economic crisis and federal reserves. However, by the beginning of 2012, the US economy was stable according to a report that was released by the Federal Reserve Bank of San Francisco on January 2012. The report was suggesting that the national economic activities were expanding at a modest rate with the economy characterized by high consumer spending habits, expansion of the manufacturing industry and growth...
2 Pages(500 words)Article
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Term Paper on topic Money and the federal reserve system for FREE!

Contact Us