1 / 12

FEDERAL RESERVE SYSTEM

FEDERAL RESERVE SYSTEM. FEDERAL RESERVE SYSTEM. FED Central banking system of the United States Federal Reserve Act (1913). Federal reserve system contains : Board of Governors Federal Open Market Committee 12 Federal Reserve Banks and their branches Three advisory councils.

job
Download Presentation

FEDERAL RESERVE SYSTEM

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. FEDERAL RESERVE SYSTEM

  2. FEDERAL RESERVE SYSTEM • FED • CentralbankingsystemoftheUnitedStates • FederalReserveAct (1913)

  3. Federalreservesystemcontains: • BoardofGovernors • Federal Open Market Committee • 12 FederalReserveBanksandtheirbranches • Threeadvisorycouncils

  4. FederalReserveDistricts

  5. CommitteeofGovemors • 7 members, electedfor 14 years (changeevery 2yrs) • formulatingmonetarypolicy, determinesrates, establishesrulesofregulationandsupervision, andestablishesrulesfortheprotectionof bank clients

  6. CommitteofGovemors

  7. FED Aims: • price stability • fullemployment • economicgrowth • ensurethe stability ofthefinancialsystemandreducesystem risk • providefinancialservicesfor deposit institutionandgovernment • strenghten U.S. position in worldeconomy

  8. Nationalpaymentssystem TheFederalReserveplaysanimportant role in the U.S. paymentssystem. ThetwelveFederalReserveBanksprovidebankingservices to depositoryinstitutionsand to thefederalgovernment. Fordepositoryinstitutions, theymaintainaccountsandprovidevariouspaymentservices, includingcollectingchecks, electronicallytransferringfunds, anddistributingandreceivingcurrencyandcoin

  9. Bankinglegislative in the U.S. NationalCurrencyAct (1863), National Bank Act (1864) • founding office to checkcurrency,centralizationbanknotes,introductionofmandatory minimum reserves FederalReserveAct (1913) • establishment oftheFederalReserve Systém (the systém performingthetaskscentralbanks) BankingAct (Glass-SteagallAct) (1933) • separatingtradeandinvestmentlaw, estabilishingofmandatory deposit insurance FullEmploymentandBalancedGrowthAct (1978) • monetarypolicyobjectives: price stability, fullemployment, economicgrowth FinancialServicesModernizationAct (1999) • allowingmergeinsurancecompaniesandinvestmentbanks -> creationof holding companies – cancelingGlass-SteagallAct EmergencyEconomicStabilizationAct (2008) • Rescueprogramsandchanges in troubledfinancialinstitutions WallStreetReformandConsumerProtectionAct (2009) • tighteningoversightofderivatetransaction, restriction on bank trader on itsownaccount • increase in clientprotectionagainst unfair practices

  10. Quantitativeeasing (QE) • „ quantitativeeasing“ • QE1, QE2, QE3 • increasing the quantity of money in circulation and improve their availability • loweringinterestrates

  11. QE3 and market reaction in pricesofGold

  12. Questions • What formulate Committeee of Governors? 2) How many districts have Federal Reserve Banks? 3) Fed aims?? 4) QE – is it good way how to solve problem?

More Related