Free Essays on Federal Reserve to Get Inspired & Learn by Example

Abstract

This paper is aimed at answering five major questions as provided by the instructor. The questions are related to the Federal Reserve and its role in affecting the economy of the country. The first question is related to evaluating the role as well as the effectiveness of the Federal Reserve in stabilizing the current economy. The second question pertains to determining the economic indicators the Federal Reserve should analyze in order to better stabilize this particular economy. The third question is about describing which monetary policies the Federal Reserve might use to influence the money supply. In the answer Continue reading...

Introduction

The Federal Reserve acts as the guardian of the United States economy. It watches over the largest economy in the world. As a bank of the United States government, the Federal Reserve is authorized to regulate the financial institutions in the country. It dictates the monetary and economic policies, which have profound impacts on citizens around the country. Financial crises are essentially caused by the imprudent lending and borrowing hence it is the role of the Federal Reserve to ensure that the economy returns to normalcy. The present paper explores the role of the Federal Reserve in the economy Continue reading...

The 2007-2008 economic and financial crisis was the worst and greatest to grip United States since the 1930' Great Depression. The crisis resulted in 26 million Americans losing their jobs or unable to find permanent employment or just not ready to engage in job hunting because of the gloomy employment prospects (Angelides et al, 15). Moreover, 4 million Americans lost the ownership of their homes due to foreclosure and about 4.5 million others reneged on their mortgage payments thus fell in the foreclosure process. The amount of wealth that households lost totaled to about $11 trillion with savings and Continue reading...

Central banking system is a major part of any economy. Central banking systems in the economy have important roles that they play in driving a country’s economy. They regulate money supply; they are responsible for controlling the interest rates as well as looking after the banking system within the country. Today, central banks are acting as agencies of monetary policy. Central banks play important roles in creating financial stability functions in a country. In United States, the central banking system is called Federal Reserve Bank (Fed). The importance of central banking in U.S. is emphasized in the roles Continue reading...

Introduction

The Great Recession has been known as the most devastating worldwide economic crisis ever since the Great Depression. It threatened the entire collapse of the world’s large financial institutions. It also affected the housing market, leading to foreclosures, evictions, and prolonged unemployment. As a response to this recession, the central banks around the world used both unconventional and conventional policy measures to loosen the monetary policy and support the demand. Quantitative Easing (QE) was one of the unconventional monetary policy response tools that the United States and United Kingdom used. As the standard monetary policies in the two Continue reading...

Introduction

The financial system of the country is the whole sphere of economic relations of all business entities and government bodies involved in economic life, as well as regulating economic relations within national boundaries. Since the market economy, as well as in transition, virtually all economic relations exist in the form of commodity-money, so far almost all of them appear to exist in the form of cash flows. Enormous diversity of species of these streams forms the country's financial system. In the financial system allocates public finances, finance companies and finance people.
Subsystems called major components of complex systems, which Continue reading...

1.0 The money market and its transactions
The money market is the center of credit exchange in the United States and around the world. It is where businesses (local and global), governments (local and global), and individuals (local and global) borrow or lend short-term credit instruments usually for a term of 1 to 120 days (Kidwell & Peterson, 1987). Instruments include the U.S. Treasury securities (e.g. Treasury bills), negotiable certificates of deposit (time deposit), commercial paper (short-term unsecured promissory notes), banker’s acceptances (time drafts), and repurchase agreements (sale of short-term security or collateral). However, the U.S. Treasury bills are Continue reading...

Introduction

In its early days the main purpose of the Federal Reserve System was to help banks during banking crises and exchange fevers. Initially, the control over the level of bank credit, money supply and rates of interest was not within the purview of the Federal Reserve System. In that time the gold standard was dominated in the United States, and it was assumed that the amount of gold stored in the bowels of the US banking system is the mechanism that regulates the amount of money in circulation and bank credit. The founding fathers of the Federal Reserve System Continue reading...

Financial markets play a critical role in stable and efficient operation of economies of various countries by providing liquidity to various forms of securities. Owing to their nature of providing simple and instant marketability, these markets allow both sellers and potential buyers of a variety of securities to interact openly and freely. Through the existing regulations in financial markets, efficiencies in several aspects of its operations can be achieved. In addition, these markets help in the determination of the various risks and rewards of these securities thereby helping in effective and fair pricing of these securities (Burke & Litwin, 1992). Continue reading...

Introduction

Taxes are complicated and to understand the role of taxes in American society it is important to comprehend the imposing complexity of the tax code as tax has important economic importance (Corder 134). This paper seeks to analyse the Federal Reserve System in U.S, taxation system and how the United State allocates its financial resources.
Federal bank system is a system that is compost of twelve Federal Reserve districts that operate under the reserve board and each containing member bank that is regulated and served by the Federal Reserve Bank that performs functions that are similar to Bank of Continue reading...