U.S. Federal Reserve System Research Paper Example | Topics and Well Written Essays - 500 words

U.S. Federal Reserve System - Research Paper ExampleMoreover, the system is operating in United States to provide exchange benefits among different regions, to reckon the money supply and demand fluctuations, to control arising systematic risks in pecuniary market, to fulfill liquidity needs and to manage and supervise banking institutions (News Events, 2009).However, its primary aim is to assure countrys economy by taking various active measures. The perfect monitory policies, measures taken to achieve national stinting goals will summit to successful economic growth. Moreover, it requires different tools such as discount rate and open market operations in order to influence reserves of mysterious financial institutes. It works as a governments body and it is associated with several functions. First, it serves as a bank for bank, it involves in various transaction of banks. Whereas, financial institutions borrows money in case of shortage of money. Secondly, it works as a regul atory in buying and selling of securities in an open market and as a governments bank, it issues U.S currency. Thirdly, as a regulatory agency, it monitors that the rights of consumers are protected, and ensures that things run smoothly in banks. However, the current economic policy is focusing on unemployment and does not include plans to raise interest rates (Plossers, pp. 1-3). Moreover, the current monetary policy is not working well the decline of dollar is problematic for businesses. payable to the fact, investments are drastically decline whereas foreign investments are speaking out and divesting (Philadelphia, pp. 2).According to personal opinion, I agree, because Federal Reserve System has extended its contribute programs and open market operations by enlarging reserve securities, agency debts, mortgages, and by increasing maturity transformation on balance sheet. Therefore, monitory policies affect economic activities badly. Federal Reserve System focuses on unemployment which is also a major factor but high interest