Premium Essay

Complexities of the Us Economy

In:

Submitted By cp1911
Words 563
Pages 3
Complexities of the U.S. Financial System

Professor Crawford

Finance 100

10/28/2014

Complexities in the US Financial System

The Federal Reserve System is the most powerful component of the US Economy. The Federal Reserve is made up of four components. There is a seven member Board of Governors that direct monetary policy. A 12 member Federal Open Market Committee (FMOC) that sets the target for the federal funds rate which also guides the Federal Interest Rate. 12 regional banks that supervise commercial banks in their respective regions, these regional banks also implement monetary policy for the commercial banks to follow. The FED also has a designated Economist who provide information and reports to congress. The Federal Reserve’s primary function is to control inflation without triggering a recession. The FED’s work together with the Treasury Department to avoid or counter any global financial crisis. The FED has been diligent in the past 20 years and more effective in the past decade to assist in the rebound of the economy crashing in the mid 2000’s. “The financial crisis of 2008 led to the worst recession since the Great Depression of 1929. This was despite aggressive efforts by the Federal Reserve and Treasury Department to prevent the U.S. banking system from collapsing. As a result of the recession, housing prices fell 31.8% (What Was the 2008 Financial Crisis? Causes, Costs and Whether It Could Happen Again, by Kimberly Amendeo) more than during the depression.” The Federal Reserve Board of Governors primary function is to set monetary policy. Janet Yellen is the current appointed Chairman of the Board of Governors. The Chairman serves as public spokesperson and representative of the Board and manager of the Board's staff. The interest rate is guided by the federal funds rate. Interest rates are important to the US and

Similar Documents

Free Essay

Fin 100 Week 4 Assignment 1 – Complexities of the U.S. Financial

...ASSIGNMENT 1 – COMPLEXITIES OF THE U.S. FINANCIAL To purchase this Click here: http://www.activitymode.com/product/fin-100-wk-4-assignment-1-complexities-of-the-u-s-financial/ Contact us at: SUPPORT@ACTIVITYMODE.COM FIN 100 WEEK 4 ASSIGNMENT 1 - COMPLEXITIES OF THE U.S. FINANCIAL The U.S. financial system has many complexities and it is impacted by several environmental factors, including federal regulations and the economy. Write a two to three (2-3) page paper in which you: 1. Describe how the U.S. financial markets impact the economy, businesses, and individuals. 2. Explain the role of the U.S. Federal Reserve, the Federal Reserve Chairman, and Board, indicating its effectiveness in today’s economic environment. Provide support for rationale. 3. Explain how interest rates influence the U.S. and global financial environment. Provide support for explanation. 4. Describe how exchange rates may impact a business’s decision to operate in foreign markets. Click Here to Buy this; http://www.activitymode.com/product/fin-100-wk-4-assignment-1-complexities-of-the-u-s-financial Activity mode aims to provide quality study notes and tutorials to the students of FIN 100 Week 4 Assignment 1 - Complexities of the U.S. Financial in order to ace their studies. Activity mode - Best Home Work Tutorials FIN 100 WEEK 4 ASSIGNMENT 1 – COMPLEXITIES OF THE U.S. FINANCIAL To purchase this Click here: http://www.activitymode.com/product/fin-100-wk-4-assignment-1-complexities-of-the-u-s-financial/ ...

Words: 1314 - Pages: 6

Free Essay

Econ550 Assignment 3

...MICROWAVE FOODS 1 Frozen Microwave Foods Economics 550 Professor Curtis Youngblood Strayer University May 13, 2014 MICROWAVE FOODS 2 1-Outline a plan that managers in the low-calorie, microwaveable food company could follow when selecting pricing strategies for making their products as inelastic as possible. Provide a rationale for your response. After researching, Mark Laceky Has a good plan that managers can follow in anticipation of raising prices when selecting pricing strategies for making their products respond to a change in price less elastic. He has six (6) price planning strategies: 1-Plan Pricing from Two Starting Points The two points he considers are supply and demand. The supply side would take into account raw material, labor and packaging cost. The demand is where you would consider the elasticity. When prices are less elastic, managers should concentrate on a marketing mix for their low-calorie frozen microwaveable foods. When the manager is considering aspects of their product, they should consider customer loyalty. When customer loyalty is a factor, you are able to charge more because customer loyalty makes market demand less elastic. 2-Put in Place an Ongoing and Flexible Process Managers must review and monitor...

Words: 1817 - Pages: 8

Premium Essay

Complexity

...Complexities of the US Financial System The U.S. financial markets impact the economy, businesses, and individuals in a multitude of ways. Businesses are impacted by the U.S. Financial markets through investing. For instance, if the number of investors lowers dramatically businesses will have a hard time finding funds to grow their business or even start it up at all. Individuals who invest or trade are both positively and negatively impacted. According to Kimberly Amandeo, " The investors profit when the companies increase their earnings, which keeps the U.S. economy growing. Its easy to buy stocks, but takes alot of knowledge to buy stocks in the right company". If not done properly or funds are not pulled before a business fails, the individual- who may have their livelyhood riding on this- could lose everything. The investor is needed in order to keep businesses going. If individuals just decided to stop investing businesses would fail and the U.S. would fall into even more debt. The U.S. Financial market acts as a chain that connects the economy, businesses, and individual together and shows us just how well the economy is doing. If one is effected, both negatively or positively, so are the other two. The US Financial System is not limited to the financial and stock market. A Financial System is a composition of multiple financial institutions, markets, regulatory bodies, and depositors. A Money Market is where low-risk, highly liquid, short-term instruments are created...

Words: 705 - Pages: 3

Free Essay

Finance Assignment 1

...Complexity of the US Financial System Michelle Bates Professor: Ahmad Zia Rawish Strayer University May 6, 2015 Principle of Finance 100 Complexity of the US Financial System How does the US financial market impact the economy? The financial market has different financial products including derivatives, bonds, and stocks among others. Derivatives are very complicated financial products that gain value from stocks and bonds (Altig, Christiano, Eichenbaum & Linde, 2011). These financial products are futuristic in the sense that they are based on future investments. Their effect on the economy is that they reduce its volatility. How does the US financial market impact business? One of the most significant impacts of financial markets on businesses is access to credit (Garbade, 2014). When the financial markets are not doing well, the general access to credit for businesses is also affected. Banks and financial institutions reduce their lending rates as a precautionary measure to avoid defaulters. As a result, businesses cannot get access to loans hence impeding their ability to continue running and expanding. How does the US financial market impact individual? When the financial markets are failing, the borrowing rates increases while the number of investors reduces (Garbade, 2014). Due to the raised borrowing rates, the prices of commodities go up reducing individuals’ purchasing power. As the prices go up, people are left...

Words: 733 - Pages: 3

Premium Essay

Ebook

...EVOLUTION AND SELF-INTEREST Richard Dawkins argues that at its most fundamental level, the genetic level, life is self-interested.1 Genes do only one thing; they replicate themselves. These replicators reside in and are carried around by biological vehicles (trees, animals, humans, fungus, etc.). The resources that support these biological vehicles are finite, so the process of life has become a competition among genes to create vehicles that can successfully compete for limited resources and survive to pass on their genetic code. Dawkins coined the term ‘selfish gene’ to emphasize the single, focused object of a gene’s existence. What he means is that the sole purpose of a gene is to make copies of itself using the Darwinian selection process; very selfishly ignoring the consequences this pursuit may have on other living entities. Self-interest is a requirement for survival. This does not mean, of course, that animals and humans cannot be altruistic sometimes, in certain activities.2 It does mean that no living entity can survive for long if it is only purely altruistic. On the other hand, survival is not necessarily jeopardized when an organism is purely self-interested. Altruism, in the absence of self-interest, is not evolutionarily stable in the biological world; it leads to extinction. It is for this reason that all extant life forms must be selfish. Humans, like all creatures, are self-interested; not because it is good to be selfish but because we would not be here if...

Words: 14733 - Pages: 59

Premium Essay

Ibm Pestle

... in Macro and Micro environment level 3. IBM strategy PESTEL analysis in Macro level Five forces analysis in Micro level Recommendation Conclusion SOWT analysis Complexity analysis 4. o IBM understood Value was shifting in the IT industry, driven by the rising tide of global integration, a new computing paradigm and new client needs. o Economies of developing nations were growing rapidly, driven by historic investments in fundamental business infrastructure. Enterprises were looking to tap skills and expertise available all over the world and to integrate their operations globally. o Change in computing architecture was rippling across the data center and the network, along with a proliferation of technology infused into all aspects of work and life. Companies were seeking to integrate advanced technology with their business processes and operations, not only to reduce costs, but to enable innovation and growth. o IBM remixed their businesses in order to move to the emerging higher- value spaces by focusing on software and IT industry. IBM Strategies 5. IBM Strategies Hardware And Services Software IBM sold the personal computing department To Lenovo 6. PESTEL Analysis for Macro environment factors Social Political Technological Environmental Economic Legislative 7. Iraq War in 2003, affected world economy, and IBM stock fell down. Technology affects directly to computer technology industry because computer technology can be used as a tool to invent many technological...

Words: 1417 - Pages: 6

Premium Essay

China E-Commerce

...China wangs7@gmail.com c College of Business, Alfred University, Alfred, NY 14802, U.S.A. fhuang@alfred.edu Abstract In China, the development of e-market has unique characteristics in the transactional processes and market mechanisms, which relate largely to the current industry structure, financial infrastructure and organization structure. This paper seeks to develop a conceptual model of B2B e-market value creation strategy, and can also be used to highlight the complexity of such activities for Chinese B2B e-markets. A process-oriented approach to modelling the value of e-market, rather than strategic position theory or a simple descriptive approach, is found to be more suitable and has been selected. The model consists of two dimensions: the e-commerce process and the controlling complexity. We apply the model in an actual Chinese B2B e-market (Alibaba.com). The crucial value creation activities and strategies in the four phases of e-commerce process are identified, and the controlling complexity of these activities is evaluated in the model. The model offers an effective approach to study the dynamic structure of transactional processes and bring into light the special issues of e-market development in China. Managers can resort to the model to offer more value to their customers by designing an effective...

Words: 6040 - Pages: 25

Premium Essay

Zsfhjmk

...Home TAYLOR SAMSEL Share ... 183 Home Classroom Library Program Account PhoenixConnect Careers MKT/421 » Syllabus US/Arizona Time: Jul 29, 2014, 2:38 PM MKT/421 (BSDS1DBAM2) Class Home Week1 Week2 Week3 Week4 Week5 Full Syllabus Week2. Strategic Planning and Positioning. Jul 22 - Jul 28Week2 Strategic Planning and Positioning Jul 22 - Jul 28 / 13 points Tasks Complete the Learning Team Charter. Objectives/Competencies 2.1Identify the components of an effective marketing plan. 2.2Conduct a SWOT and competitive analysis. 2.3Apply the market research process in discovering and answering business questions. 2.4Apply a segmentation model to create a target market and develop a positioning statement. Learning Activities Required Reading Basic Marketing, Ch. 2 43 Reading Basic Marketing, Ch. 3 14 Reading Basic Marketing, Ch. 4 11 Reading Basic Marketing, Ch. 7 10 Reading Basic Marketing, Ch. 18 7 Discussion Favorite Brand Discussion 24 Discussion Product and Organization Selection and Approval 6 Discussion Research and Discussion 3 Video The Five Competitive Forces That Shape Strategy 1 Video Target: Inside the Bullseye 2 Video Positioning 11 Video Marketing Research and Segmentation 4 ERR Week 2 Electronic Reserve Readings Assignments ASSIGNMENT STATUS FRIENDLY NAME TITLE DUE DATE POINTS UNREAD COMMENTS Participation Week 2 Participation Due Jul 28, 11:59 PM /3 Presentation Marketing...

Words: 19836 - Pages: 80

Premium Essay

Hhjhjhj

...revised form 15 January 2009 Accepted 15 January 2009 Keywords: Complexity Institutional quality Human capital Division of labor Comparative advantage JEL classification: F10 a b s t r a c t This paper proposes a simple theory of international trade with endogenous productivity differences across countries. The core of our analysis lies in the determinants of the division of labor. We consider a world economy comprising two large countries, with a continuum of goods and one factor of production, labor. Each good is characterized by its complexity, defined as the number of tasks that must be performed to produce one unit. There are increasing returns to scale in the performance of each task, which creates gains from specialization, and uncertainty in the enforcement of each contract, which create transaction costs. The trade-off between these two forces pins down the size of productive teams across sectors in each country. Under free trade, the country where teams are larger specializes in the more complex goods. In our model, it is the country where the product of institutional quality and human per worker capital is larger. Hence, better institutions and more educated workers are complementary sources of comparative advantage in the more complex industries. © 2009 Elsevier B.V. All rights reserved. 1. Introduction “Ever since David Ricardo published his Principles of Political Economy, cross-country differences in technology have featured prominently...

Words: 10933 - Pages: 44

Premium Essay

Complexity in Systems

...COLLECTED VIEWS ON COMPLEXITY IN SYSTEMS JOSEPH M. SUSSMAN JR East Professor Professor of Civil and Environmental Engineering and Engineering Systems Massachusetts Institute of Technology Cambridge, Massachusetts April 30, 2002 The term “complexity” is used in many different ways in the systems domain. The different uses of this term may depend upon the kind of system being characterized, or perhaps the disciplinary perspective being brought to bear. The purpose of this paper is to gather and organize different views of complexity, as espoused by different authors. The purpose of the paper is not to make judgments among various complexity definitions, but rather to draw together the richness of various intellectual perspectives about this concept, in order to understand better how complexity relates to the concept of engineering systems. I have either quoted directly or done my best to properly paraphrase these ideas, apologizing for when I have done so incorrectly or in a misleading fashion. I hope that this paper will be useful as we begin to think through the field of engineering systems. The paper concludes with some “short takes” -- pungent observations on complexity by various scholars -- and some overarching questions for subsequent discussion. AUTHOR A THEORY OF COMPLEX SYSTEMS Edward O. Wilson Herbert Simon SOURCE Consilience: The Unity of Knowledge “The Architecture of Complexity”, Proceedings of the American Philosophical Society, Vol. 106, No. 6, December...

Words: 7863 - Pages: 32

Premium Essay

Complexities of the U.S. Financial System

...Assignment 1: Complexities of the U.S. Financial System Brandi Hays Professor Umair Warsi FIN100 February 1, 2015 The impact of the US financial markets on economy is quite high. This is because of all the major companies that are listed in the Stock Market contribute towards the economic growth of the country. When their performance deteriorates, their overall rating in the Stock Market suffers a downward trend. Thus, it produces a negative impact on the US economy. Though, in some cases, the dynamics of the Stock Market has its own issues and does not produces any impact on the economy. When the global financial crisis occurred in the USA in 2008, the overall Stock Market crashed which showed a negative trend of the economy. Therefore, these issues reflect the impact of US financial markets on economy. The impact of the US financial markets on the businesses is even there. When the overall position of the market is favorable, the businesses experience a positive impact. Though, this is not a usual case because some businesses flourish purely on the basis of their performance not on the basis of Stock Market position.  When the US financial markets perform well, the individuals in an economy also have confidence in many aspects. They are not hesitant to spend money on the goods and are able to borrow money from the banks in order to have various types of expenditures. In some cases, the negative position of the US markets discourages the consumer to spend money...

Words: 644 - Pages: 3

Premium Essay

Adopting Ifrs to U.S Economy.

...The benefits of the conversion to IFRS far outweigh the costs and therefore the US should adopt IFRS. Transitioning to IFRS will allow the US to regain strength in the global investment market as financial statements will have greater comparability and this will benefit the economy as a whole. To the investor, IFRS promise more accurate, comprehensive and timely financial statement information and its global comparability. IFRS allows small investors to compete better with professional investors. IFRS eliminate many international differences in accounting standards so that it reduces the cost and the risk to investors of processing financial information. The domestic investors should keep updating the differences between GAAP and IFRS to using IFRS numbers to make the best decision. To the U.S public companies, IFRS can enhance the liquidity of capital markets and reduce companies’ costs of capital. IFRS will have a substantial impact on the reporting quality of U.S. companies. U.S firms with operations around the world could potentially save a lot of money by avoiding the costs of translating their financial reports into several local accounting languages. On the costs side, adopting IFRS would require various upfront costs for companies. During a transition phase, companies would have to modify their accounting systems and processes as well as provide comparative financial information between their previous U.S. GAAP reports and their new IFRS-compliant reports. In addition...

Words: 480 - Pages: 2

Premium Essay

Complexities of the Us Financial System

...Complexities of the US Financial System Impact of US Financial Markets on Economy In the United States the effect of financial markets on the economy is very high considering the fact that the majority of the main companies listed in the stock exchange play a pivotal role in contributing towards the country’s economic growth. Thus, any depreciation as it pertains to performance plummets the company’s ratings in the stock market impacting negatively on the country’s economy. Nonetheless, sometimes the dynamics evident in the stock market has limited effect on the company particularly when it entails other issues (Evans & Hnatkovska, 2005). For instance, the occurrence of the economic downturn in 2008 led to the crashing of the stock market which lead to negative economic growth; both of these are a reflection of the impact that US financial markets have on the country’s economy. Impact on businesses: US financial markets have some effect on businesses because favorable portions of the financial markets impact on businesses positively, although not always considering that some businesses solely depend on their performance to grow as opposed to the position of the stock market (Chong & Miffre, 2009). Impact on individuals: Good performance of the financial markets means improved confidence of those affected by the economy: hence, they tend to spend their money more willingly and borrow more money from banks to cater for their expenditures. Usually, when the position of the...

Words: 669 - Pages: 3

Premium Essay

Logistics-Chapter1Review

...businesses. ANS: T PTS: 1 REF: Page 6 2. A key element in Wal-Mart's ability to discount brand name products was an understanding of the criticality of efficiency in its logistics and supply chain system. ANS: T PTS: 1 REF: Page 6 3. Globalization has had little effect on consumers. ANS: F PTS: 1 REF: Page 7 4. Supply and demand has become less volatile as managers become more adept at controlling the elements. ANS: F PTS: 1 REF: Page 7 5. Outsourcing is a fairly new concept. ANS: F PTS: 1 REF: Page 8 6. SAB should examine their off-shore purchasing policy, even though the products are sourced from the U.S. ANS: T PTS: 1 REF: Page 9 7. The world economy still favors the United States and European countries, even though China and India can participate in the global economy much more readily. ANS: F PTS: 1 REF: Page 9 8. The U.S. transportation system was deregulated in the 1930s and 1940s in response to economic conditions and World War 2. ANS: F PTS: 1 REF: Page 12 9. Even though there are references to supply chain management in the 1980s, SCM did not capture the attention of senior-level management until the 1990s. ANS: T PTS: 1 REF: Page 14 10. Supply chain managers no longer need to worry about suboptimization in light of today's technology. ANS: F PTS: 1 REF: Page 23 MULTIPLE CHOICE 11. Most retailers are essentially supply chain companies since a. they dominate the consumer market. b. own their warehouses...

Words: 1947 - Pages: 8

Free Essay

Stress

...English assignment selection A (Stress) 1. “Good stress, bad stress” is an article written by Sacha Bonsor. Stress has become a way to common word in the modern everyday language. Too many people are dealing with stress on a daily basis. The growing statistics are showing that stress is taking its toll on the UK economy. In the year 2004 stress had cost the UK economy £13.5 billons due to increased illness. Stress is, by definition, people’s reaction to excessive pressure and demands. According to Dr. Bond those who are best able to cope with stressful situations have high levels of psychological flexibility. These people let themselves feel fear and they use fear for a constructive end, therefore they are good at handling stress. In some situations avoiding stress can be damaging because you never get the experience that will help you deal with the next stressful situation that arises. According to this article if you want to live a long and healthy life, avoiding stress is not the answer. We all need some degree of stress in our lives. 2. The first text focuses stress-related problems at work, and how to deal with them. In the text we learn that one of the least stressful jobs is being a dinner lady. In comparison to a teacher, the dinner ladies don’t have much interaction with the children, and for that reason this job is almost free of stress. People working jobs where they cannot express their true feelings seem to be the most stressful, whereas employees who...

Words: 934 - Pages: 4