Business, 15.08.2020 03:01 Hellopeople233

Write a short history of the Federal Reserve (FED). Explain how it operates in the United States. What is the function of the FED

Answers: 2

Show answers

Answers

Answer from: justin5647

Background

The Federal Reserve Bank or he Fed as it is popularly known, was created by an Act of Congress in 1913 to serve as the Central Bank of the United States of America. It is therefore the Principal Bank in the United States and serves as the bank of the US Government by default. As the Central Bank, the Fed is in charge of Financial Institutions in the country especially Banks. They also controls the amount of USD in circulation through different methods such as Open Market Operations, Discount and Reserve ares and requirements and the actual printing of money ( they decide how much money the Treasury Department's Bureau of Engraving and Printing should print).

Responsibilities

The Fed is in charge of Monetary policy which it uses to maintain interest rates and money supply in the United States. As already stated which some additions, the Fed's responsibilities are;

To act as the US Government's bankTo regulate and oversee financial institutionsInfluence money supply and interest rates.

Modus Operendi

Open Market Operations - This is a method by which the Fed controls money supply. Using Open Market Operations (OMO), the Fed sells or purchases Government securities through a number of securities dealers who compete on a price basis. By buying Government securities the Fed puts money into the Economy as payment for the securities and when they sell they reduce money supply. Reserve Requirements - This is a percentage of total deposits that banks are to keep with the Fed to protect against Bank failure. This requirement can be increased or decreased to control the amount of money that banks hold and by extension money supply. Discount Rate - This is the interest charged on loans to banks from the Fed. Controlling it is also a tool in Monetary Policy.

Answer from: Quest

visit lady liberty

go to the supreme store

central park

times square

chinatown

empire state building

theres a lot to do in : )

Answer from: Quest

the correct answer is b.)

Another question on Business

Business, 22.06.2019 09:30

Stock market crashes happen when the value of most of the stocks in the stock market increase at the same time. question 10 options: true false

Answers: 1

Answer

Business, 22.06.2019 16:00

Three pounds of material a are required for each unit produced. the company has a policy of maintaining a stock of material a on hand at the end of each quarter equal to 30% of the next quarter's production needs for material a. a total of 35,000 pounds of material a are on hand to start the year. budgeted purchases of material a for the second quarter would be:

Answers: 1

Answer

Business, 22.06.2019 19:10

Pam is a low-risk careful driver and fran is a high-risk aggressive driver. to reveal their driver types, an auto-insurance company a. refuses to insure high-risk drivers b. charges a higher premium to owners of newer cars than to owners of older cars c. offers policies that enable drivers to reveal their private information d. uses a pooling equilibrium e. requires drivers to categorize themselves as high-risk or low-risk on the application form

Answers: 3

Answer

Business, 22.06.2019 20:20

As you have noticed, the demand for flip phones has drastically reduced, and there are only a few consumer electronics companies selling them at extremely low prices. also, the current buyers of flip phones are mainly categorized under laggards. which of the following stages of the industry life cycle is the flip phone industry in currently? a. growth stage b. maturity stage c. decline stage d. commercialization stage

Answers: 2

Answer

You know the right answer?

Write a short history of the Federal Reserve (FED). Explain how it operates in the United States. Wh...

Questions