Finance Essays

902 Words Jul 30th, 2013 4 Pages
The U.S.A, financial system is very difficult. So much so that it impacts at least several influences climate as well as federal regulations and the economy. All these factors have the same problem on the economy, and business people alike. The Federal Reserve Chairman, and Board, also plays a direct role into the running of today’s economic climate. The complications that impact the U.S.A also have a direct influence on the world’s financial economy environment. A lot of these big issues include the exchange rate as well as the interest rate, the highs and lows.
The U.S.A financial place has a huge impact on people, businesses, and climate. Thanks to financial places which help colorfully in pack the flow of investments and savings in
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The Federal Reserve plays a significant role in the U.S.A. payments system. Twelve Federal Reserve Banks offer banking services to depository institutions and to the federal government (Federal Reserve's Key Policies for the Provision of Financial Services, 2012). For depository institutions, they maintain multiple payment services and accounts, including the collection of checks, electronically transferring funds, and distributing and receiving currency. For the federal government, the Reserve Banks act as financial agents, paying Treasury checks, processing electronic payments, and issuing, transferring, and redeeming U.S. government securities (Federal Reserve's Key Policies for the Provision of Financial Services, 2012). The Fed controls financial institutions, manages the nation's money and influences the economy. By increasing and decreasing the interest rates, creating money and using a few other tricks, the Fed can either fuel or slow down the economy. This effect helps maintain low inflation, high employment rates, and manufacturing output. Currently, the Federal Reserve is keeping the interest rates at a minimum to stimulate the Economy. If the real interest rate is low, the costs of living, doing business and investing are also low. This stimulates the economy because home and car loans are more affordable. If people can borrow more, they'll spend more.
The chair of the Federal Reserve is the head of the central

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