...Federal Reserve’s Publication Describe the Federal Reserve’s assessment of the current economic activity and financial markets. The U.S macro economy experiencing a notable extended period of economic expansion led to people believing that the U.S’ economy had become less volatile and prone to recession. Our economy’s growth slowed significantly and was threatened to enter the first recession of the millennium in mid-2000. According to the Federal Reserve the situation of our economy can be viewed from two points of view. The first one suggests that the slowdown in our economy is temporary, short-lived, and reversible meaning its recovery can be “V-shaped.” The second one suggests that the recession will last longer, a more drawn out slowdown, and followed by a weaker and more sluggish recovery also called “U shaped” recovery. This later view is associated with asset price deflation as well as burdensome debt. The current economic activity appears to be moving on the right direction and reversing itself into a near-term recovery. Also another aspect of it is the signs of potential risk of longer-term casual factors at work. The suggestion based on the fragility of the economy is that policymakers must be prepared to react and further preventive steps should be considered. Explain the Federal Reserve’s current view about inflation. There are two types of inflation that are closely tied to each other. Monetary inflation is an increase in the money supply. Price inflation...
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...Title: The Federal Reserve Name: Jane Doe Course: Eco 320/Understanding Prof. John Smith Date: 11/28/2012 It would not be an overstatement to say that the U.S Economy is very strong at least compare to other countries. One is sure that listening to the news and the politicians in Washington, DC they render a different opinion. But these tactics are just to scare people and make believe on ideals that have nothing to do with the actual state of the Economy. The fact is we now live in a global economy and what happen in Europe can have a major affect in the U.S economy. The European Union is not very stable at this moment and probably never will be stable, because the adaption of the Euro has failed on its main objective. The U.S Dollar is still the preferred and trusted paper for the world to conduct trade. The role of the Federal Reserve is to keep that trust and confidence in the U.S Dollar at home and abroad. To gain more prospective on the role of the Federal Reserve it is imperative to answer and explain the following questions: Evaluate the role and effectiveness of the Federal Reserve in stabilizing the current economy. The American economy is a complex balance of services, financial, manufacturing, agricultural, and banking industries. For this reason, the U.S. is a global economy, relying upon foreign investments and trade to create and retain wealth. Over the years, America has evolved from farming-based, to industrial, to a services-based economy...
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...The Federal Reserve Ryan Butler 23 August 2011 Evaluate the role and effectiveness of the Federal Reserve in stabilizing the current economy. The American economy is a complex balance of services, financial, manufacturing, agricultural, and banking industries. For this reason, the U.S. is a global economy, relying upon foreign investments and trade to create and retain wealth. Over the years, America has evolved from farming-based, to industrial, to a services-based economy. As a result, the banking system from its inception has weathered the many growing pains associated with a new government and currency, instituting regulations and a centralized bank to examine the economy, and implement policies intended to offset factors negatively affecting the general financial health of the country. Now, as the United States moves towards a globally interdependent marketplace, the stakes are much higher than they were when Congress established the Federal Reserve in the early 1900’s. A country’s debt can now become the world’s debt, and the role of the U.S. federal banking system is now considerably more under pressure and scrutiny than ever before. As we have been seeing with the current liquidity crisis in the U.S., and how it has affected U.K. and Asian markets, strong, comprehensive policy-making is now crucial to sustaining long-term economic viability. Even despite the growing need for quick, precise actions by the Federal Reserve System, the decision-making regarding the...
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...Tucker Finance 350 Assignment 1 Professor Togbenou December 17, 2012 1. Explore one (1) financial market and the types of transactions supported by it in the U.S. and global economies. Determine how valuable these transactions are to the overall U.S. and the global economies. In finance a bond is a debt security issued by corporations and government agencies to assist in their daily operations and functions. When the corporation or agency issues a bond to the bond holder, they are actually issuing a debt and promise to repay the original bond price plus interest in most cases. The interest paid on this debt is considered the coupon payment and is usually paid semi-annually or annually. Depending on the type of bond, the coupon payment can be a fixed rate or it can change over the course of maturity. Bonds have maturities that range from one year to over fifty years. A bondholder might not want to hold the bond until the agreed upon date so they sell the bond in a secondary market in order to have access to their money again. A bond can be a municipal, a treasury, a junk, a corporate or an I-bond. There are also bonds considered convertible bonds that can be transferred into stock by the bondholder. “Bonds are an important part of the economy and contribute to two-thirds of the average daily trade in U.S. market (Chakrvarty)”. Bonds are considered valuable because they are a means to wealth from an investor’s standpoint and they make business operations more accommodative...
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...Assignment #2: Working with Federal Reserve’s Publications Melis Metin Instructor: Prof. Winston Edmonston-Deigh Money and Banking-ECO320 February 1, 2011 Describe the Federal Reserve’s assessment of the current economic activity and financial markets. According to the staff review of the Federal Reserve, consumer spending increased significantly in 2010. Private investment in the form of business outlays for equipment and software is showing a sustainable growth. Construction activities, on the other hand, in both residential and nonresidential sectors of the construction industry are weak. The Fed’s staff observes that the industrial production increased solidly in the recent months due to the colder weather boosting the activities in the utilities. Even though there is a modest gain in employment, unemployment remained high. The trade deficit narrowed slightly in the last months of 2010 due to the increase in agricultural goods exports. The rise in imports was due to the increases in the value of the petroleum products. In the imports front, the Fed observes that the imports of automotive products, services, and consumer goods declined significantly. The Fed expects that the trade deficit will improve over the coming months. In the financial markets front, the Fed observes that short-term funding markets sustained their stability. As for then capital markets, broad U.S. stock price indexes increased. In fact, bank stock prices increased...
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...The Federal Reserve’s duties are to maintain the stability of the financial system, supervise and regulate banking institutions, conduct monetary policy and provide financial services to the government, such as operating the nation’s payments system. The establishment of the Federal Reserve System and how it conducts monetary policy, through interest rate variance, reserve requirement, money supply and several other programs, is fundamental to understanding the economy as a whole. The Federal Reserve Act, also known as the Glass-Owen Bill, was passed December 23, 1913 under President Woodrow Wilson (Goodseek.com). The Federal Reserve was born from the National Monetary Commission which proposed that the country needed an institution to deal with a poorly regulated banking system that was responsible for economic downturns (WFHumel.net). The original 1913 bill stated that the original act was “to have succession for a period of twenty years” and yet there have only been minor adjustments to the bill since that time (Goldseek.com). Federal Reserve is comprised of 3 divisions: the Board of Governors (BOG), the Regional Reserve Banks, and The Federal Open Market Committee (FOMC). The BOG guides the Federal Reserve’s policy actions, studies trends in the economy, and helps forecast the economic future, In addition, the BOG also participates in monetary policy-making on the FOMC, and is responsible for bank regulations and overseeing the operations of the Reserve Banks (Goodseek...
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...third day now), I am at the hotel room writing this. So here are the facts from the ground: The park is not packed and according to my family the line ups or waiting for any ride or attraction are very small. In fact two days ago they reported that several rides and/or attractions had no line ups at all. The hotels are not full. EVERY SINGLE hotel here (that I can see) has vacancy. Remember, this is on a school holiday! So just like McDonald’s Big Mac is a good inflation indicator (check it online if you are not familiar with it), in my book Disney World is a good proxy (indicator) of the REAL economic health; based on that I am still very cautious about the strength of the US economic recovery and what I am being fed by the Cartel (Federal Reserve), the White House, the various US government agencies and of course the typical US media which is nothing more than the “repeat after me” (reporting what they are being fed, not what they searched and/or investigated)...
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...and how they can be overcome. Your response must make references to short term fluctuations as well as long-term economic growth prospects. As I see it, the U.S. national debt is one thing that will have a huge impact on the future economic well being of the United States. As of July 19, 2015, the U.S. national debt equals $18,158,174,556,882.73 (U.S. National Debt Clock), which is 101.53% of the gross domestic product (Trading Economics, 2015). From an individual’s perspective this exorbitant national debt will potentially lead to higher taxes, reduced benefits (for example Social Security), and higher interest rates. The national debt has continued to increase approximately $2.05 billion dollars per day since September 2012 (Trading Economics, 2015). If the U.S. government doesn’t find a way to curb the current expansionary fiscal policy, the United States could find itself in a situation similar to Greece over the past few weeks. As a healthcare provider and someone who sees the firsthand effects of the current system on patients and healthcare organizations, I am very interest in healthcare reform and its impact on the Federal budget deficit. With healthcare expenditures in the U.S projected to reach 34% of the GDP by 2040, the case for healthcare reform is a no-brainer, and President Obama’s monetary policies sought to remedy this. However, the Affordable Care Act in its current form is not the answer. The Department of Health and Human Services estimates Obamacare...
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...Running Head: Federal Reserve Paper Page 1 Federal Reserve Paper Your Name February 7, 2011 Federal Reserve Paper Page 2 Money has many purposes and functions. In economics money is defined as a set of assets in the economy that people use to buy goods and services from others. The intentions of the monetary systems are to put more money in the economy’s circulation to increase production and employment. Money has three main functions in the economy. It is the medium of exchange, a unit of account, and a store of value. When money is used to intermediate the exchange of goods and services it performs the function of being a medium of exchange. A unit of account is a standard numerical unit of measurement of the market value of goods, services, and other transactions. Money must be able to be saved, stored, and retrieved in order to be a store of value. Basically, money refers to any financial instrument that can fulfill the functions of money supply. The United States monetary system is managed by a central bank; in this case it is the Federal Reserve. The Federal Reserve manages our nation’s supply of money and credit. The Federal Reserve is at the center of our nation’s financial system. It provides money to the federal government...
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...Complexities of the U.S. Financial System Briefly describe one (1) way the U.S. financial markets impact the economy, one (1) way the U.S. financial markets impact businesses, and one (1) way the U.S. financial markets impact individuals. Companies sell stock to raise money. Once a stock begins trading in the secondary market, its change in price has no direct effect on the company that issued it. Regardless of the wavering of the stock price, the issuer would still have the money raised to fund their company. Without a doubt, every company wants to see their stock prices rise. Despite mixed opinions, there is a strong positive relationship between financial market development and economic growth. The markets help to efficiently direct the flow of savings and investment in the economy. Credit-rating agencies are known to be influenced by stock prices, and their decisions have a large effect on the availability of credit to the firm. Regulators, who take actions that affect firm cash flows (most prominently, in the case of banks), follow market prices very close. Business owners with good ideas are constrained by the amount of capital they can raise. Although they can use their own money and borrow from their family and friends, these are limited sources of capital. Eventually, as they desire to grow their companies or reach their potential, they have seek to fund-growth using other people’s money. They can borrow from fellow citizens under a contractual obligation to pay...
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...(Prerequisite: FIN 100) Quarter: Spring 2013 Meeting Days/Time: Tuesday’s, 5:45, Prince George’s Campus Instructor: Jason Powers Instructor Phone: 443-599-9525 Academic Office: 301-505-3332 / 301-505-3311 Instructor E-mail: Jason.Powers@strayer.edu Instructor Office Hours/Location: Tuesday’s from 3:30pm – 5:30pm. Online Academic Office Phone Number: 877-540-1733 http://icampus.strayer.edu Technical Support Contact Information: 877-642-2999 Backboard Helpdesk: 866-350-9427 Inclement Weather Policy In the event of inclement weather, consult the Strayer University student website at www.strayer.edu for information on University closings and delays. Be sure to monitor the website for updates as they occur. Additionally, the student is required to contact me at Jason.Powers@strayer.edu. |4/8/2013 |Term Start Date | | | | | | |Week 1 | |Week 7 | | | |4/9/2013 | |5/21/2013 | |Week 2 | |Week 8 | | | |4/16/2013 | |5/28/2013 | |Week 3 | |Week 9 | | | |4/23/2013 | |6/4/2013 | ...
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...The Federal Reserve Term Paper The Federal Reserve After several periods of economic and banking problems, the United States of America was searching for a fix. In December of 1913, the American Congress approved the Federal Reserve, which President Woodrow Wilson signed into law. By 16 November 1914, a working Federal Reserve was set up in 12 cities chosen as regional Reserve Bank sites. These reserve banks were privately owned banks. The Federal Reserve wielded unprecedented power, which was noticed during the beginning of World War I (WW-I) when the Federal Reserve set interest rates for American banks and helped finance Europe’s war efforts until 1917, when the U.S. declared war on Germany and financing America’s war efforts became paramount (Education, 2013). “I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small dominate men.” Woodrow Wilson (History of the Federal Reserve, 2013). As you can decipher from President Woodrow Wilson’s quote about the Federal Reserve...
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...American economy is composed of financial balance of services, Agricultural, manufacturing and banking industry. In the result U.S one of the biggest global economy which comprises of foreign investments and movement of wealth in trade. From past many years the U.S economy is emerged more as service based and industrial base economy than farming based. This result the banking system to be more complex to deal with the government and currency , instituting the regulations and a centralized bank to regulate and from a policies which could limitize the negative effect on the general economic health on the country. In this paper I will analyze the Federal Reserve Banking System in U.S.A and the Federal Reserve’s assessment of the current economic activity and financial markets. its current view about increasing inflations . 1. Describe the Federal Reserve’s assessment of the current economic activity and financial markets. Federal Reserve System is a banking system of United State of America, the purpose of this banking system to address the banking elastic currency, furnish, panics to supply the more funds available to the economy and, to maintain the stability of the financial system etc. The sharp increase in the exchange rates results in increase of interest rate , depress in the stock prices, and weakness in the current economic activities . Economic Expansion (Experienced and Extended) In recent years the United State economy become less volatile and...
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...is still one of the greatest defining eras in US History. In general, we know what caused the Great Depression, but these causes are still debated even today. It happened after a period of great prosperity (The 1920s) when American commerce was growing. The issues that surround the causes of the depression are still issues today. Task: Using information from the documents and your knowledge of United States history and government, answer the questions that follow each document in Part A. Using your answers from Part A you will write an essay (Part B) in which you will be able to: • Discuss the following three causes of the Great Depression, o Use of Credit o Over speculation o The Federal Reserve’s Monetary (Money) policy Use the box below to organize your notes and ideas that can be used to convert into an essay. Part A: Short Answer Document #1 Ford Advertisement: 1920 [pic] Duke University Library 1. An average annual wage of all industries in the 1920s was about 1400.00 dollars a year. Many workers averaged (depending on the job) between .50 cents per hour up to 2.00 dollars per hour). How much does a worker make a month making 1.00 per hour (40 hour work weeks)? _____________________________________________________________ 2. How much would a 1920 Ford Touring cost per month if bought with an installment plan of 12 installments (one every month) in one year?_______ 3. What happened in the 1920s that...
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...Complexities of the U.S. Financial System Jami Christian Professor Umair Warsi Finance 100 May 4, 2013 The financial markets help to efficiently direct the flow of savings and investment in the economy in ways that facilitate the accumulation of capital and the production of goods and services. The combination of well developed financial markets and institutions, as well as a diverse array of financial products and instruments, suits the needs of borrowers and lenders and therefore the overall economy (Econ, 2005). The stock market is an economic indicator of how well the U.S. economy is doing. If investors are confident in the economy, they will buy stocks. Stocks are how companies get funded to grow larger. Usually, when someone wants to start a business, they pay for it with loans or even their own credit cards. Once they grow the company enough, they can get bank loans, or even float their own bonds to individual investors. Since the U.S. stock market is so sophisticated, it is easier in this country than in many others to take a company public. This helps the economy grow, since it provides a boost up to companies wishing to grow very large. The Federal Reserve is the nation’s central bank that works to keep the banking, financial, and payments system safe, sound and stable. It also provides financial services to the government and public. Finally, and very importantly, the Federal Reserve’s conduct of monetary policy contributes to the long run health of the...
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