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

Monetary policy: the Federal Reserve Bank of the U.S.A - Essay Example

Comments (0) Cite this document
In the paper “Monetary policy: the Federal Reserve Bank of the U.S.A.” the author focuses on the monetary policy of the Federal Reserve Bank of the U.S.A. particularly during and after the global financial crisis. This paper summarizes the article “Monetary Policy and the Federal Reserve”…
Download paper
Monetary policy: the Federal Reserve Bank of the U.S.A
Read TextPreview

Extract of sample
Monetary policy: the Federal Reserve Bank of the U.S.A

Reserve: Current Policy and Conditions”).
In Open Market Operation (OMO), the central bank buys securities issued by the U.S. treasury. In case of purchasing the new securities the bank has to issue new currency to expand the reserve base. This is done in order to expand the monetary base of the economy so that the financial institutions can provide loans to the business enterprises and raise credit. The second conventional policy as pointed out in the article is the reserve requirements ratio. This is a measure by which the central bank controls the overall level of deposits that commercial banks maintain with it. This is a key technique in which the liquid cash is maintained within the economy. This policy is however not exercised actively by the bank and the rates had not been revised in the past ten fifteen years. In the current economic scenario, banks are required to maintain an overall of 0% to 10% (Labonte, “Monetary Policy and the Federal Reserve: Current Policy and Conditions”). The exact value is determined by the size of the banks. Ever since 2008 the government has decided to pay interests on the excess reserves. Finally, discount policy is another such mechanism in which the central bank promotes internal lending and borrowing among banks. This is a temporary arrangement for borrowing money by financial institutions Commercial financial institutions can discount their own assets to the central bank and raise assets (Labonte, “Monetary Policy and the Federal Reserve: Current Policy and Conditions”). ... Read More
Cite this document
  • APA
  • MLA
(“Monetary policy: the Federal Reserve Bank of the U.S.A Essay”, n.d.)
Retrieved from https://studentshare.net/macro-microeconomics/729424-monetary-policy-the-federal-reserve-bank-of-the-usa
(Monetary Policy: The Federal Reserve Bank of the U.S.A Essay)
“Monetary Policy: The Federal Reserve Bank of the U.S.A Essay”, n.d. https://studentshare.net/macro-microeconomics/729424-monetary-policy-the-federal-reserve-bank-of-the-usa.
  • Cited: 0 times
Comments (0)
Click to create a comment
Federal reserve monetary policy
(Functions of Money) If money had not been there all transactions would have to be done through barter system. That is a tedious process on day to day operations. Money also functions as a unit of account measuring the value of goods or services under exchange.
3 Pages(750 words)Term Paper
Working with Federal Reserve's Publications
Working with Federal Reserve’s Publications Abstract The central banking system of the U.S.A is the Federal Reserve System. In its latest July 2011 issue of the report on the U.S economy, the Federal Reserve states a moderate economic growth. The growth rate however, has slowed down in six districts.
7 Pages(1750 words)Essay
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
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
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
Should monetary policy be boring and has this been the case for the UK and the USA over the last ten years
and UK in order to achieve a constant economic growth despite the external factors that affect these countries’ economic activity. The current major external factor that affects the activity of U.S. and UK is the long-term effects
8 Pages(2000 words)Essay
Monetary Policy: money, credit, the Federal Reserve, interest
However at present, banks and other lending institutions have managed to operate with a very low level of excess reserves. Such manipulation of the
3 Pages(750 words)Essay
Working with Federal Reserves Publications
The Federal Reserve has also reported that the pressure of prices in the economy has eased from that recorded before. To maintain price stability and stabilize the economy,
5 Pages(1250 words)Essay
The Monetary Behavior as Created by the Federal Reserve
First printed as “greenbacks” to finance the Civil War in the 1860s, the paper currency that the United States uses today was, at first, backed by precious metals such as gold and silver, with a distinct standard of worth to
6 Pages(1500 words)Essay
Let us find you another Essay on topic Monetary policy: the Federal Reserve Bank of the U.S.A for FREE!
Contact us:
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