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

U.S. Federal Reserve System - Research Paper utilisationMoreover, the system is operating in United States to provide exchange benefits among different regions, to control the money supplying and demand fluctuations, to control arising systematic risks in financial commercialise, to fulfill liquidity needs and to manage and finagle banking institutions (News Events, 2009).However, its primary aim is to strengthen countrys economy by taking various agile measures. The perfect monitory policies, measures taken to achieve national frugal goals will lead to successful economic growth. Moreover, it requires different tools such as discount rate and open market operations in gild to influence reserves of private financial institutes. It works as a governments personate 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 regulatory 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 ar protected, and ensures that things run smoothly in banks. However, the current economic policy is focusing on unemployment and does not take on plans to raise interest rates (Plossers, pp. 1-3). Moreover, the current monetary policy is not working well the eliminate of dollar is problematic for businesses. Due to the fact, investments are drastically decline whereas foreign investments are speaking come out and divesting (Philadelphia, pp. 2).According to personal opinion, I agree, because Federal Reserve System has extended its lending programs and open market operations by enlarging reserve securities, agency debts, mortgages, and by increasing maturity transformation on equalizer sheet. Therefore, monitory policies affect economic activities badly. Federal Reserve System foc uses on unemployment which is also a major factor but high interest