Foreign exchange reserves

Part 1: As per Exchange rate policy on 15th March 2015: A.] The recent changes in china’s exchange rate policy as exemplified on 15th March 2014 are:  China made its currency Yuan a much free floating currency by loosening and widening its daily trading limit against U.S dollar. (WSJ, 2014)  The china’s central bank and people’s bank of china set a daily trading rate called the parity rate for Yuan against the U.S.dollar, allowing the widening of the daily trading band to push from its…

to the Federal Reserve is most often used? Why? The Federal Reserve has many tools at its disposal to influence the money supply. There are 3 main tools, which are Reserve requirement, Discount rate (Discount loans), and Open market operations. Let’s talk first about this main 3. Reserve requirements are, “requirements regarding the amount of cash a bank must hold in reserve against deposits made by customers. This money must be in the bank's vaults or at the closest Federal Reserve bank. Set by…

Which of the monetary tools available to the Federal Reserve is most often used? Why? The Federal Reserve has three monetary tools called Open Market Operations, Discount Rates, and Reserve Requirements. From these three monetary policies, the Federal Reserve uses the Open Market Operations the most. Since the Federal Reserve is unable to control inflation or unemployment directly, it buys and sells securities in the open market where various primary securities dealers compete. The…

Codification Definition of Foreign Currency FASB ASC Topic 830-10-20 defines foreign currency as, “A currency other than the functional currency of the entity being referred to (for example, the dollar could be a foreign currency for a foreign entity). Composites of currencies, such as the Special Drawing Rights, used to set prices or denominate amounts of loans, and so forth, have the characteristics of foreign currency.” What the Codification Requires for Disclosure ASC 830-20-50 provides…

3. Expansion and Creation of Financial Institutions: The State bank as the banker of the banks expand the banking sector and improve its currency and credit system over the time. Pakistan is a big country with huge population to meet the needs to such a large population. The State Bank pave the way for more financial institutions to provide financial products to every Pakistan. State Bank not only strengthens the financial institution in urban areas but also try to provide credit facilities in…

The Federal Reserve System, also known as the Federal Reserve, is the central banking system of the United States. Due to a series of financial crises with many banks, especially the one in 1907, the Federal Reserve was created in December 1913. The many crises led to “panics” which caused people to run tot heir banks and withdraw all of their money. During those times when one bank failed, the same would happen to other banks, which caused customers of other banks to withdraw everything, even…

Stock Exchanges in the world because of globalization of the markets. The collapse in China led to the following events, in December China sold U.S. government bonds and as a result of this may foreign central banks absorbed these bonds. China is the biggest foreign owner of U.S. Treasury debt and in December they cut $18.4 billion of U.S. government debt, according to the latest capital flows report from the U.S Treasury. The article continues and identifies Japan as the second largest foreign…

Insurance (ONI) to “monitor all aspects of the insurance industry.” (Friedman 35) As proposed by this act, the ONI would recommend the Federal Reserve that insurers, due to risk exposure, should be designated as Tier 1 FHCs or companies that pose a threat to the financial stability of the US during the time of economic stress and strictly regulated by the Federal Reserve (Hoshi). The ONI would also collect and analyze the financial information on the insurance industry, with broad power to…

company by the name California Arabian Standard Oil Company (Casoc) was created to manage the concession. The company’s search for oil reserves was repeatedly done, and drilling was done for five years to no avail until 1938 when the company finally struck ‘black Gold. ' This was commercial quantities…

Most countries around the world wanted to regulate transactions between countries within the world trade market around the mid to late-1800’s. For this reason, the gold standard was implemented. The gold standard specified that the government would exchange any amount of paper money for its worth in gold. This meant transactions no longer had to be done with heavy gold bars or coins, and could be easily handled with paper transactions. Countries had to separately elect to follow the rules of…