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.
Nobody downloaded yet

Structure of central banks and the federal reserve system - Essay Example

Comments (0)
Summary
Discussing the origins of Federal Reserve System is significant because out of all the central banks, the structure of Federal Reserve System is unusual and different. The origin of Federal Reserve System dates back to 1913 when it was created. The American politics is known for…
Download full paper
GRAB THE BEST PAPER
Structure of central banks and the federal reserve system
Read TextPreview

Extract of sample
Structure of central banks and the federal reserve system

Download file to see previous pages... e American public to the existence of central bank resulted in the failure of two banks in 1811 (First Bank of United States) and 1836 (Second Bank of United States) (Mishkin & Eakins).
Since the aim of establishing these two banks was to police the banking function, therefore, their failure caused problems for American financial markets because of the unavailability of lender of last resort. As a result bank panics were seen frequently during the nineteenth and early twentieth centuries. Finally, the panic of 1907 and the loss to depositors convinced the public regarding the importance of central bank system in an economy.
Even after being convinced, the fear of the American public opposed the establishment of a centralized authority or central bank (Bank of England). Moreover, the fears were also seen about the interference of government in the affairs of private banks. The major disagreement was that whether central bank should be a private bank or a government body. Finally the disagreement ended with the Federal Reserve Act of 1913 with its 12 regional Federal Reserve banks. Congress wrote the detailed system of checks and balances into this Act.
To diffuse power along the regional lines, between government and private sector, business community and public, the formal structure of Federal Reserve System was defined. Following are the four entities of Federal Reserve System.
In addition, more than 3000 commercial banks are the members of Federal Reserve System. Mishkin and Eakins (2007) systematically highlight the relationship between these entities and three policy tools of Fed.
The current European Central Bank was founded as a result of a treaty between European Central Bank and European System of Central Banks in 1999. Based in Frankfurt, Germany, European Central Bank consists of Executive board including president, vice president and four members and Policy group including executive group and governors of central banks from 11 member countries.
The ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
The Monetary Behavior as Created by the Federal Reserve
Founded by Congress, the Federal Reserve was created to provide the nation with a safer, more flexible, and more stable monetary system. The structure of the Federal Reserve itself was designed to give a broad outlook on the economy and economic matters, and bring some stability to a currency.
8 Pages(2000 words)Essay
The federal reserve system
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 stabilizing the economy of the country.
3 Pages(750 words)Essay
Federal Reserve 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).
5 Pages(1250 words)Essay
The Federal Reserve
Over the years, the system and structure if the federal reserve has evolved to meet the effects of economic crisis and great depression in the economy. The Federal Reserve System was created under the Federal Reserve Act in order to address the issue of panic in the banking industry and acts as the final check point and regulator in the clearing system and the banking industry.
8 Pages(2000 words)Essay
Federal Reserve
The structure, roles and the responsibilities of the Federal Reserve has undergone rapid changes over the years which have been mainly stimulated by the events like the Great Depression, Global Financial Crisis, etc. The structure of the Federal Reserve System is composed of a governing board, the open market committee, regional Federal Reserve banks, privately owned banks in US and the advisory councils.
5 Pages(1250 words)Essay
Money,banking and the federal reserve system
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.
7 Pages(1750 words)Essay
The Federal Reserve Bank
They jointly implement the monetary policy which is set by the Federal System. Every Federal Reserve banks governs the regulation of commercial banks in their district. Alexander Hamilton, the first secretary of treasury of United States, proposed the idea of instituting a National Bank in order to develop the country in terms of all the financial aspects.
5 Pages(1250 words)Essay
Federal Reserve Policy
The lack of credit, the lifeline of business, has threatened the ability of firms to do business and expansion is left as an impossibility. Consumer loans for automobiles, appliances, and other goods are difficult to obtain, and when it is available it is expensive.
8 Pages(2000 words)Essay
The Federal Reserve System
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. The Federal Reserve System includes the Federal Open Market Committee, the Board of Governors, and the Federal Reserve Bank Presidents.
3 Pages(750 words)Essay
ENGLISH 1113 PAPER (EXPOSITORY WRITING). This paper will present information about one of the topics listed below. 1. What is 3D printing 2. Who was Ben Bradlee 3.What is fracking 4. What is the Federal Reserve
Since its inception, on 23rd December 1913, it has played a pivotal role in the ever growing economy of the US. President Woodrow Wilson signed the Federal Reserve Act in law in 1913 and
5 Pages(1250 words)Essay
Let us find you another Essay on topic Structure of central banks and the federal reserve system for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us