Alan Greenspan Pros And Cons

Alan Greenspan Pros And Cons
Alan Greenspan, born in New York City on March 6, 1926, grew up surrounded by economics as his father of Romanian Jewish decent worked as a
stockbroker and financial analyst. When he was five years old, Greenspan expressed his skill in mathematics by reciting baseball batting averages and
performing large calculations in his head. He attended George Washington High School, where he played clarinet and saxophone with classmate and
future musician Stan Getz. After graduating, Greenspan studied clarinet at Juilliard for a short time before transferring to New York University. At
NYU, Greenspan began studying economics and completed his undergraduate and graduate degrees. Subsequently, he worked on a doctorate at
Columbia University under economist... Show more content on Helpwriting.net ...
During this period, many Internet–based companies, commonly referred to as dot–coms, were founded, many of which failed. Academics Preston
Teeter and Jorgen Sandberg criticized Greenspan for his role in the promotion and rise in tech stocks. Their research cites numerous examples of
Greenspan putting a positive spin on historic stock valuations despite a wealth of evidence suggesting that stocks were overvalued. Sequentially, he was
criticized for contributing to the subprime mortgage crisis. When his fifth term expired in 2006, Greenspan retired from his position at the Federal
Reserve Board. His successor in this role was Ben Bernanke. In 2011, the bipartisan Financial Crisis Inquiry Commission found that during the U.S.
housing bubble of the early 2000s, Greenspan's failure to limit trade in securities backed by mortgage loans and his advocacy of deregulation of the
financial industry had contributed to the global financial crisis of 2008. Wall Street and Greenspan often found themselves at odds. Most business
papers have shaped Greenspan as being rabidly opposed to inflation. Greenspan was criticized for pursuing a battle against inflation when he could
have used his power to reach full employment or economic growth
... Get more on HelpWriting.net ...

The Federal Reserve System Is A Banking System Of The...
Keyonna Gregory
October 25, 2014
BUS 254
Internet Workshop
Question 1a. Write a one page concise or two pages double spaced summary explaining the Federal Reserve.
Basically, the Federal Reserve System is a banking system of the United States. "It was created in 1913, with the enactment of the Federal reserve Act"
(2014). There are many responsibilities the Federal Reserves has which include, supervision and regulation, monetary policy, payment services and
finally the financial stability. President Woodrow Wilson signed the Federal Reserve Act, into a law. There are also many events that led up to the
signing of the Federal Reserve Act that stuck out to me.
The money and banking systems weren't the same in Colonial America. Colonial banks were not allowed to accept deposits from the public or make
loans. Instead, they issued paper currency backed by metals and goals. Colonists were also limited to using bartering, European coinage as their
primary means of exchange. "The legislation created a uniform national currency and permitted only nationally chartered banks to issue bank notes"
(2014).
There was a period of a free banking era. There was a huge need for a reliable banking system during the civil war. Many banks did not keep enough
money on hand to meet the normal demands. People lost their confidence in the banks and then began to go take their money out. This triggered a
succession of bank failures. The Federal Reserve System had a severe financial crisis, in

Thomas Jefferson Centralized Bank
I sincerely believe, with you, that banking establishments are more dangerous than standing armies, and that the principle of spending money to be
paid by posterity, under the name of funding, is but swindling futurity on a large scale." – Thomas Jefferson, 1816. Since the formation of the United
States, the use of a centralized bank has been a point of debate. Thomas Jefferson was against the formation of a centralized bank, but Alexander
Hamilton contended that it was necessary to create a centralized bank for carrying out the powers specifically granted to congress (American History
1994). According to the Constitution the national government was authorized to levy and collect taxes, pay debts, and borrow money. Hamilton
believed a national bank would help perform these functions efficiently. Jefferson argued the Constitution does not grant the federal government the
ability to set up a bank. Speaking on behalf of states' rights, he argued any powers not specifically designated to the Federal ... Show more content on
Helpwriting.net ...
These panics contributed to the failure of banks and businesses alike. In 1907 banks extended too much credit to consumers in order to keep up
with the increase in spending activity. The currency available to the public was depleted soon after. Banks could no longer conduct loans or pay
out money from existing accounts. This led to the loss of their security and their complete collapse. Financial crisis of this type had happened
before but this time it led to the creation of the Federal Reserve Act. President Woodrow Wilson signed the act in December of 1913, and established
the Federal Reserve board, but their purpose and oversight were not clearly defined. Originally the Federal Reserve banks role was to control the
discounted rate at which other banks could lend each other money. Over the years the Federal Reserve's powers have grown (Federal Reserve System

Federal Reserve: The Roles Of The Federal Open Market...
The Federal Reserve is the Central bank of America and act as the lender of last resort. The central bank was founded in 1913 by the then elected
members of congress. The Federal Reserve board is comprised of 12 members. The head of the Federal Reserve is the board of governors. Janet L.
Yellen is the current Chair of the Board of Governors of the Federal Reserve. Janet Yellen also serves as Chairman of the Federal Open Market
Committee which makes up part of the central bank, the System's primary monetary policymaking body. The 12 governor's represents the major
regions in the country? Seven of the 12 member are on the FOMC board who is appointed by the President and confirm by the Senate. Each member
serves 1 year, but can serve up to 14 terms depending on their appointment to the board. One of the members on the Board also serves as the Chairman
of the FOMC whose headquarters is in New York City.... Show more content on Helpwriting.net ...
The CB uses open market operations to buy and sell securities as a means of implementing their monetary policies. They also used the open market
operations as a way to control the liquidity of available money by influencing the short term interest and the supply of base money; therefore as a
result controlling the supply of money. They also set the target rate for the feds and setting the discount rate at which for member banks to lend money
to each other. The Feds also evaluate the bank mergers and also implements foreign exchange policy on behalf of US government and the

The Federal Reserve: Central Banking System
he Federal Reserve or the Fed is the central banking system of the United States of America. It was formed in 1913 by the U.S. Congress following
the formation of the Federal Reserve Act which was created after a series of financial panics e.g. the severe panic in 1907. Before that, the U.S did not
have any organization whose sole purpose was to study and implement monetary policy. It made markets unstable and the public had little faith in the
banking system (Binder, 2013). The Fed as an independent entity is subject to oversight by Congress. It is headed by the Board of Governors of the
Federal Reserve which is a government agency in Washington. The Board of Governors consists of seven staff who is presidential appointees and each
of them serves 14–year terms. ... Show more content on Helpwriting.net ...
The board is managed by a chairman and a vice chairman. Each is appointed by the president and is approved by the Senate for four–year terms.
Currently, there are 12 regional Federal Reserve banks which are located in major cities around the country. They operate under the supervision of the
Board of Governors. They act as an operating arm of the central bank and do a majority of the work of the Fed. The roles of the Federal Reserve are:
Promote sustainable growth by supervising banks and other financial institutions to ensure the soundness of the nation's financial system.
Ensure high levels of employment by conducting the national monetary policy through influencing the economy's money and credit conditions in
pursuit of stable prices and full

Alan Greenspan
Alan Greenspan Alan Greenspan, the chairman of the Federal Reserve, has always fascinated the financial community. Whatever he says can
make or break the markets. He is a highly educated economist with many years of experience. People seek for his advice and obey his judgments.
His proclamations are repeated and expounded upon. Greenspan is loved, feared, and never ever questioned. As a result of being a strong chairman
of the Fed, he has made a difference the U.S. economy through his way of dealing with inflation. Also, the presidency no longer counterbalances or
even criticizes the Fed. First of all, we will consider his background. Alan Greenspan was born on March 6, 1926, in New York City. He received a
B.S. in economics in 1948, an ... Show more content on Helpwriting.net ...
economy. Economist Allen Sinai said, "The Greenspan Fed is the all–time champion in American history (Church par. 1)." In 1996 and 1997 he didn't
do much of anything to the interest rates. From February 1996 to December 1997, the Fed made only one change in interest rates: a quarter–point
increase in March of 1997. He resisted pressure from inside and outside the Fed to slow down the economy. Instead of being overly concerned about
inflation, he seemed to have accepted the idea that deep changes in the economy have made sustained growth possible without pushing prices up.
(Church par. 2) Because of Alan Greenspan, the Fed has learned to be more patient. It allows the economy to grow faster than expected without
putting on the brakes by raising interest rates. However, Greenspan always stays on guard. He is a renowned numbers cruncher who keeps tabs on the
most obscure corners of the economy. Robin Leight–Pemberton said that he was "likely to back up his predictions by citing such obscure data as
vacuum–cleaner sales in Iowa (Church Par 3)." Greenspan is reaping the praise of the financial community. There is a widely held sense that he has
masterminded the nation's prosperity. As many people are becoming stockholders, they regard him as a "living

Central Bank and Federal Reserve Act
Chapter 6 Structure of Central Banks and the Federal Reserve System
6.1 Multiple Choice Questions
1) Americans' fear of centralized power and their distrust of moneyed interests explains why the U.S. did not have a central bank until the
A) 17th century.
B) 18th century.
C) 19th century.
D) 20th century.
Answer: D
2) Bank panics in 1819, 1837, 1857, 1873, 1884, 1893, and 1907 convinced many that
A) the Federal Reserve needed greater control over the banking system.
B) the Federal Reserve needed greater authority to deal with problem banks.
C) a central bank was needed to prevent future financial panics.
D) both (A) and (B) of the above.
Answer: C
3) The unusual structure of the Federal Reserve System is perhaps best ... Show more content on Helpwriting.net ...
A) Chicago
B) Los Angeles
C) Miami
D) New York
E) Washington, D.C.
Answer: D
74
15) Member commercial banks have purchased stock in their district Fed banks; the dividend paid by that stock is limited to
A) four percent annually.
B) five percent annually.
C) six percent annually.
D) eight percent annually.

Answer: C
16) All _____ are required to be members of the Fed.
A) state chartered banks
B) nationally chartered banks
C) banks with less than $100 million in assets
D) banks with less than $500 million in assets
Answer: B
17) Which of the following banks are required to be members of the Federal Reserve
System?
A) state chartered banks
B) insured banks
C) banks having over $500 million in assets
D) none of the above
Answer: D
18) Of all commercial banks,
A) about 15 percent belong to the Federal Reserve System.
B) about 20 percent belong to the Federal Reserve System.
C) about 30 percent belong to the Federal Reserve System.
D) about 50 percent belong to the Federal Reserve System.
Answer: C
19) Banks subject to reserve requirements set by the Federal Reserve System include
A) only state chartered banks.
B) only nationally chartered banks.
C) only banks with less than $100 million in assets.
D) only banks with less than $500 million in assets.
E) all banks whether or not they are members of the Federal Reserve System.
Answer: E
20) The Fed's support of the Depository Institutions Deregulation and

The Role And Functions Of The Central Bank Of America
Functions of the FED
The "Fed" acts as the central bank of Americahas three main functions. Its main objectives are to promote maximum employment, stable prices and
moderate long–term interest rates by (1) providing and maintaining an effective payments system, (2) supervising and regulating banking operations,
and (3) conducting monetary policy.
The most important tool the Fed has to conduct monetary policy is open market operations, which is the buying and selling of U.S. government
securities. A Federal Open Market Committee administers the sale and purchase of U.S. government securities on the open market to influence
short–term interest rates and growth of money and credit. Other tools that the Fed has it its disposal to influence the economy include adjustments to
the discount rate and the reserve requirement, and acting as a lender. The discount rate is the interest rate the Federal Reserve Banks charge financial
institutions for short–term loans of reserves. ... Show more content on Helpwriting.net ...
In fact, the roles of central banks all over the world are pretty much the same everywhere and serve the same need: to provide financial soundness of
banking system and realizing price stability. It does so by various tools such as:
– Formulating and implementing the monetary, credit & banking policies.
– Issuing banknotes and determining their denominations and

Monetary Policy And Its Effects On The Economy
Introduction
Monetary policy has created financial stability and a lesser impact on the economy. In the aftermath of the financial crisis, many financial institutions
had little or no options just bear the burden of their immature practices. These financial institutions brought major fatalities into the markets increasing
the scope and vulnerability of the financial sectors. According to the Federal Reserve, monetary policy is an action of the central bank to achieve
macroeconomic policy objectives such as price stability, full employment, and stable economic growth.
Monetary policy has had a positive impact precisely the U.S economy. The unemployment rate has reduced and the economy has shown signs of
recovering. Moreover, many central bank governors have different views and practices when it comes to monetary easing, at such, to prevent further
crisis spill–out into the economy. In the short, the Federal Reserve chairs manage through decisions and tackle the crisis as prudent as possible. As we
have seen with quantitative easing, purchasing bonds, and making general influence of short–term market interest rate. An article by Market Watch,
lesson from the switch to Bernanke from Greenspan, when Ben Bernanke first went before senate for his nomination to become Federal Reserve
chairman in November 2005, the senators wanted to know just one thing: would you he continue to do everything that Alan Greenspan had done. To
our surprise, Ben Bernanke continued the Greenspan

The Golden Age Of Capitalism
The decades following the Second World War, often referred as the "Golden Age of Capitalism," brought an immeasurable amount of prosperity to
the United States economy. Real GDP per capita grew at 2.25 percent per year, along with a large number of American citizens entering the middle
class with the ability to enjoy benefits from rising wages and home ownership (Palley 1). It seemed as though there would be no end to this post–war
economic boom; however, the "Golden Age of Capitalism" would abruptly end at the onset of the seventies with a variety of factors contributing to
economic downturn. The lengthy expansion during the sixties was brought to end due to rising inflation, with the annual consumer price inflation up to
six percent ... Show more content on Helpwriting.net ...
Inflation continued to remain as an issue, not falling nearly as advisers expected (Madrick 58). Martin was fired by President Nixon, after refusing to
play with politics throughout his tenure as Federal Reserve Chairman. In November of 1970, Arthur F. Burns was appointed by Nixon to succeed
Martin (Abrams 177). Although qualified, Burns would soon be subjected to orders from Nixon, who wanted to resolve the inflation issue and make
the economy seem strong to voters in the upcoming re–election (Bresiger 1). In order to counter stagflation, Nixon began to implement a series of
economic measures known as the Nixon shock. Nixon first suspended the convertibility of dollars to gold and officially closed the gold window. This
would cause the American dollar to devalue, stimulating American exports as a result but further contributing to inflation with increase prices on
imports. Nixon's second measure was to impose a wage–price freeze over a period of ninety days, which restrained inflation and allowing most prices
to remain constant (Madrick 59).
With inflation temporarily under control, Nixon began implementing an expansionary policy to stimulate the economy out of a recession. Nixon began
raising Social Security benefits, increasing business tax credits on business investment, and reducing personal tax rates for individuals. Burns pushed
for a lower interest rate, decreasing from 5.5 percent to 3.25 percent (Madrick

The Federal Open Market Committee
Introduction
What will happen if the Federal Open Market Committee brings back up the interest rates that have been down? Since the interest rates have been
down, great things for businesses and employment have been happening. If interest rates go back up, corporate finance is going to be challenged.
About the FOMC
The Federal Open Market Committee (FOMC) is the monetary policymaking body of the Federal Reserve System. The Federal Open Market
Committee is composed of 12 members: five of the 12 Reserve Bank presidents and seven members of the Board of Governors. The Chairman of the
FOMC serves as the Chairman of the Board of Governors. The president of the Federal Reserve Bank of New York is a permanent member of the
Committee. The ... Show more content on Helpwriting.net ...
The Chairman holds a press briefing after the Federal Open Market Committee meeting to present their current economic projections and to provide
additional context for their policy decisions four times per year. For each Federal Open Market Committee meeting a full set of minutes is published
three weeks after the conclusion of each regular meeting. Five years after the meeting, complete transcripts of FOMC meetings are published.
By law, the Federal Reserve conducts monetary policy to achieve its macroeconomic objectives of stable prices and maximum employment. The
Federal Open Market Committee usually conducts policy by adjusting the level of short–term interest rates in response to changes in the outlook of the
economy. Since 2008, the FOMC has also used large–scale purchases of Treasury securities and securities that were guaranteed or issued by federal
agencies as a policy tool in an effort to lower longer–term interest rates and thereby improve financial conditions and so support the economic recovery
(What).
Review of Literature Why are interest rates being kept at a low level?
In 2007, the financial crisis began. It was the most intense period of global financial strains since the Great Depression. It had led to a prolonged
global economic downturn. The Federal Reserve took exceptional actions in response to the financial crisis to help stabilize the United

The Age Of Turbulence By Alan Greenspan Sheds Light On
The Age of Turbulence by Alan Greenspan sheds light on Greenspan 's time as the chairman of the Federal Reserve as well as the present and future
United States economy. Greenspan's involvement in public life started with Richard Nixon's campaign in 1967. He then went on to spend eighteen
years serving as the chairman of the Federal Reserve Board for Presidents Ronald Reagan, George H. W. Bush, Bill Clinton, and George W. Bush
from 1987 to 2006. In his memoir he teaches readers what the Federal Reserve is, what their duties are, the history of the United States economy, and
what may happen to the economy in the future.
Congress created the Federal Reserve in 1913. Although the president appoints the chairman of the Fed, it is a separate ... Show more content on
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Ultimately, the Fed's job is to stimulate a healthy economy and help it grow. Their goal is to keep a strong dollar as well as monitor and or moderate
interest rates to create more investment opportunities, thus further stimulating the economy.
When the Federal Reserve Board sets interest rates, it affects the entire economy. When the economy is doing well, the Feds may implement monetary
tightening (raising interest rates) in order to "slow down" the economy. The opposite is also true: the Fed's may implement monetary easing (lowering
interest rates) in order to stimulate the economy and help it grow. What happens when the Fed raises interest rates? When the Feds implementmonetary
policy, the only true direct effect is the fact that it is more expensive for banks to borrow money from the Fed. The increase in the federal funds rate
causes a ripple effect. Increased interest rates can have an impact on the stock market as well. Generally speaking, stocks perform poorly when the
Feds increase interest rates. This is because a higher interest rate creates a lower demand for stocks, causing stock prices to fall. The reverse is also
true; a lower interest rates creates a higher demand for stocks, causing stock prices to rise.
In his memoir, Alan Greenspan explains the biggest events in recent U.S. history that shaped the American economy. One of the most significant events
in history that has shaped our current

How Did Alan Greenspan Affect The Economy
Intro** "His words had the power to raise or drop the markets". Alan Greenspan was the Chairman of the Federal Reserve of the United States from
1987 to 2006. Greenspan has a position impact on the U.S. economy through his way of dealing with inflation. He achieved the role of being one of
the most powerful men in America. Alan Greenspan was born on March 6th 1926 in New York City. Alan studies at first centered around music and
jazz. He applied to Julliard but soon quit to join the Henry Jerome orchestra. After that he joined New York University where he received a B.S, M.A,
and Pd.D in economics.
Stuff**
Greenspan's first job was in 1948 with the National Industial Conference Board, where he analyzed demand for steel, aluminum and cooper. From
1954 to 1974 and 1977 to 1987, Greenspan was chairman and president of Townsend–Greenspan & Co., Inc. ... Show more content on Helpwriting.net
...
is an economic consulting firm in New York City. From 1974 to 1977 under President Gerald Ford, Greenspan served as the chairman of the
president's council of economic advisers. From 1981 to 1983 he served as chairman of the national commission on Social Security Reform. He served
as a member of president Ronald reagan's econonmic policy advisory board and was a consultant to the congression budget office. (http:/
/www.federalreservehistory.org/People/DetailView/6)In the crash of 1987 on oct 19th the Dow jones industrial nosedived 508 points, losing 22.6
percent of its total value. This loss outopaced the crash from the start of the great depression by 10 percent. Greenspan was Chairman of the federal
reserve at the time and to insure that this did not create a repeat of the 1929 meltdown,

Federal Reserve Chairman Ben Bernanke 's Meeting
January 28–29, 2014
Federal Reserve Chairman Ben Bernanke 's meeting dealt mainly with the issues that could stabilize the economy after the great recession. After
creating a number of policies to fight the 2008 crisis, Chairman 's move to further reduce Quantitative Easing was a bit of a disappointment. The Fed
will reduce its purchases of long–term Treasuries and mortgage–backed securities by another $10 billion a month. Apart from this, Fed is going to
concentrate on maximizing employment rates, stabilizing prices and interest rates.
According to Staff review of the Economic Situation for January 28–29, the economic growth rate picked up in the second half of 2013. There was a
gradual increase in the total payroll employment and a decline in unemployment rate. Consumer price inflation was still performing poorly than
expected, while longer–term inflation expectations remained stable.
According to staff review of the financial situation for January 28–29, there are developments in emerging market economies. The Fed will continue to
support Monetary economic situations over the intermeeting period, they were critically affected by Federal Reserve correspondences, to some degree
better–than–anticipated economic information discharges, and advancements in developing market economies. On net, monetary conditions in the
United States stayed strong of development in economic action and work: Equity costs is wrinkled a bit, longer–term investment rates declined, and the

The Federal Reserve House The Board Of Governors
The Federal System The Federal Reserve house the Board of Governors, The Federal Reserve Banks, The Federal Open Market Committee
(FOMC), and Advisory Committees. The Federal Reserve Bank is directed by the Board of Governors or Federal Reserve Board, which is located in
Washington D.C. The Board of governors is the national aspect of theFederal Reserve System and consists of nine board of directors which are
appointed by the President serve a fourteen year term. The Chairman and Vice Chairman are appointed to four year terms which can be renewed
(Federal Reserve, 2009). The Federal Reserve Banks are a network of 12 banks with 25 branches. Each banks serves a region of the country and the
12 locations are "Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San
Francisco" (Federal Reserve System, 2001). These Federal Reserve Banks serve other banks, the U.S. Treasury and inadvertently, the public. The
FOMC is made up of twelve members, seven from the Board of governors and five Federal Reserve Bank presidents (Federal Reserve System, 2001).
The Advisory committee advises on the Federal Reserve System and provides information on the effect of system policies. The advisory committee
includes the Federal Advisory Council, the Consumer Advisory Council, and the Thrift Institutions Advisory Council, which work together to advise
individual Federal Reserve Banks on these interests (Federal Reserve System,

Alan Greenspan's Impact On The Economy
Douglas Hyland Microeconomics 202 John Cutone Aug. 4th 2015 Alan Greenspan "His words had the power to raise or drop the markets". Alan
Greenspan spent 5 terms as Chairman of the Federal Reserve of the United States from 1987 to 2006. Greenspan had a huge impact on the U.S.
economy through his way of dealing with inflation. He achieved the role of being one of the most powerful men in America. Alan Greenspan was
born on March 6th 1926 in New York City. Greenspan's studies where first centered on music and jazz. He applied to Julliard but soon quit to join the
Henry Jerome orchestra. After that he joined New York University where he received a B.S, M.A, and Ph.D(1977). in economics. Greenspan's first job
was in 1948 with the National Industrial... Show more content on Helpwriting.net ...
Greenspan set the tone for how the feds would react to current and future financial crisis. Greenspan's influence still impacts the markets today
because of his accurate market predictions of the past. Alan Greenspan has received multiple honors including in 1976 the John Heinz award for
the Greatest Public Service by an Appointed Official. He also received Commander of the Legion of Honour in France in 2005, Knight
Commander of the Order of the British Empire in the United Kingdom in 2002, Department of Defense Medal for Distinguished Public Service.
In 2004 he received the Dwight D Eisenhower Medal for Leadership and services, the first recipient of the Harry S. Truman Medal for Economic
Policy, the inaugural Thomas Jefferson Foundation Medal in Citizen Leadership and the honorary Doctor of Commercial Science. He also received
the highest civilian award in the United States, by President George W. Bush in November 2005. Most recently in 2012 Greenspan received the
Eugene J. Keogh Award for Distinguished Public Service from New York University. Greenspan still works as a private advisor through his company
Greenspan Associates LLC. His memoir titled "The Age of Turbulence: Adventures in a New World" hit number two on the New York Times
best–sellers list for non–fiction. Alan Greenspan served as that figurehead for the Federal Reserve for 19 years. He also served as a

Federal Reserve System Pros And Cons
The Federal Reserve system is some time referred to as Federal Reserve is better known as (The Feds) is an independent institution that was created
on December 23, 1913 when President Woodrow Wilson signed the Federal Reserve Act into Law, and has been the central bank of the United States
ever since. Central bank the main purpose of the United States that regulate all the supplies of money and credit to the economy. The Fed have two
things in mind when theses regulates come to mind that's to prevent the economy from rapidly growing too fast, and also to prevent the economy from
shrinking. "The Federal Reserve system was created by the Congress to provide the nation with a safer, more flexible, and more stable monetary and
financial system". ... Show more content on Helpwriting.net ...
As you may or may not know "The Federal Reserve System is made up of a Board of Governors and twelve regional Federal Reserve Banks located in
major cities throughout the country. While the board has seven members the two serve as chairman and vice chairman and each governor is appointed
to fourteen–year term while appointments to the roles of chairman and vice chairman are for four years. The Federal Reserve governors serve second
to lifetime appointments of federal judges" (Board, 2003). The Federal Open Market Committee (FOMC) sets target that meets eight times per year to
make decisions on monetary

Essay about The fed under alan greenspan
Bankers prior to the establishment of the Federal Reserve would establish lines of credit with larger banks. In the event of a run, the smaller bank
would draw on the line of credit. In times of panic, large numbers of depositors would demand to withdraw their money, and only the largest Wall
Street banks, with millions of dollars in reserve, could guard against this. In the early twentieth century, people were running to withdraw all their cash
from their accounts, this may seem dramatic, almost theatrical to people today. Nevertheless, to people living in an economically unstable society, they
were an expected occurrence. The banks were independent rivals, the amount of currency in circulation was fixed, and there was no element of... Show
more content on Helpwriting.net ...
The Federal Reserve Act also required that all nationally chartered banks must be members of the Federal Reserve System. However, it was not met
without criticism. It was said to have reflected the rooted dislike and distrust of banks and bankers that has been for many years and there should
not be absolute political control over the business of banking. Despite some strong opposition it was made clear that although government influence
would be present, it was designed to be free from personal or party politics. The public, much quicker than Wilson had anticipated, as he described
the Act as a "constitution of peace" for the private businesses of the nation, accepted the Act quickly. The Act was not perfect, however, and the last
sentence of the Act states: "The rights to amend, alter, or repeal this Act is hereby expressly reserved." In fact, an overlying theme of the
Federal Reserve Act was one of uncertainty; and many of the provisions used language like "under the rules and regulations to be specified by
the Federal Reserve Board," and "subject to review and determination of the Federal Reserve Board." The rules had to be developed
as the game was learned. The Federal Reserve Act helped to stabilize the volatile banking system. No longer were banks independent organizations
working against each other. Now they were secure interrelated operations. The Federal Reserve Act worked because it eliminated the competition to
hoard money

Bernanke on Bernanke Essay
In a recent article in Bloomberg, reporter Jeannine Aversa gives some history and advice for Ben Bernanke, Fed Chief from Ben Bernanke the
scholar. Ben's advice in a nutshell? "Be bold." Ben Bernanke began his 4 year appointment as Fed Chairman and 14 year term on the Federal
Reserve Bank's Board of Governors February 1, 2006 by President George H.W. Bush. He was appointed to a second term as the Chairman on
February 1, 2010 by President Barack Obama. Dr. Bernanke received his B.A. in economics from Harvard in 1975 and a Ph.D. in economics from
the Massachusetts Institute of Technology in 1979 (Federal Reserve, 2011). The article in Bloomberg hits on a few key spots where Bernanke has had
to be bold in his actions in an effort... Show more content on Helpwriting.net ...
On his watch, the Fed has also had to purchase mortgage securities as well as government debt in an effort to revive the housing market and
promote spending by Americans (Aversa, 2011). Another effort to promote spending by consumers was a payroll tax cut called for by Bernanke
along with buying up $600 billion in bonds through an open market operation. When the Federal Open Market Committee (FOMC) wants to
increase the money supply, they buy up government bonds from the public on the bonds markets (Mankiw, 2009). The result of buying bonds puts
money in the pockets of the public, if the Fed wants to decrease the money supply, they sell off bonds. It is generally thought that when the public
has more money available to them, they will consume more. This increased consumption should lead to an overall increase in Gross Domestic
Product (GDP) and expansion of the economy. GDP is the market value of all final goods and services produced within a country in a given period
of time. GDP is basically the measure of a nation's total income and is an important tool in explaining a single society's economic well–being (Mankiw,
2009). To some extent that was the case, consumption did increase for a short period of time after the Fed's Quantitative Easing (QE). 2010 and the
first half of 2011, saw some good

The Real Gdp Is The Total Value Of All Final Goods And...
The Real GDP is the total value of all final goods and services produced during a particular year or period, adjusted to eliminate changes in prices.
The key variables used in the study of macroeconomics are output, employment and price level. A healthy economy is when the annual output of
goods and services are growing at a rate it can sustain, price levels are stable and unemployment is low. The economy can experience a recession if
there is a sustained decline or growth in the GDP.Inflation and deflation are measured by changes in the Price Index. The Price Index number reflects
movement in the price level and allows economist to estimate the rate of change in prices. When there is an increase in the general level of prices for
goods ... Show more content on Helpwriting.net ...
The employment level at which the quantity of labor demanded equals the quantity supplied is called the natural level of employment. When
employment is greater than its natural level real GDP will be greater than its potential level which can cause an inflationary gap. Nominal wages
will rise when there is an inflationary gap. There needs to be a shift in the short run aggregate supply for GDP to be reduced so inflationary gaps
can begin to close. The potential output is the level of output an economy can achieve when labor is employed at its natural level. When the supply
and demand are not equal there will be an excess supply of goods being demanded. A shift in the demand or supply curve can happen when the
quantity of goods demand or supplies change and the prices remain the same. Aggregate Demand is the relationship between the total quantity of
goods and services demanded as a whole for the economy. Changes in consumption, investments and tax policy can cause shifts in the aggregate
demand curve. When price levels drop people tend to buy more which can cause the aggregate demand curve to fall. A lower level of employment can
produce less out–put, which can in turn case a recessionary gap. When the aggregate demand falls below potential output a recessionary gap can
occur. To close a recessionary gap nominal wages must decrease so the short–run aggregate supply curve can shift and the Real GDP return to
potential. Aggregate Supply

The Federal Reserve System Essay
What the world needs now is Money Sweet Money"; that is not the way the song goes however that is surely the way our world and economy does.
Money and its importance relative to the US Government have always been difficult to figure out especially when it comes to interest rates. Due to
our Federal Reserve System, its chairman Alan Greenspan, and his Board of Governors dedicated to seeing that our economy blossoms, those doubts
have become a thing of the past, for now. TheFederal Reserve System is a central banking of the US Government, most commonly known as the Fed. A
central bank serves as the banker to both the banking community and the government. It issues the national currency, conducts monetary policy, and
plays a major role in ... Show more content on Helpwriting.net ...
They must purchase capital stock in their District Reserve Bank, entitling them to a six percent stock dividend, thus issuing them the right to vote for
six of the nine Directors of that District Bank. Within this structure there was the Monetary Control Act of 1980 which imposed a reserve requirement
on all depository institutions, which allows them to borrow and receive other services from the Fed. This remains beneficial because by enabling
banks to borrow reserves from the Reserve Banks the liquidity of the entire banking system is increased. With that said the basic function of the FED
relates primarily to the maintenance of monetary and credit conditions favorable to sound business activity in all fields; agricultural, industrial and
commercial. Among this some duties include the following: lending to member banks, open market operations, establishing discount rates, fixing
reserve requirements and issuing regulations concerning these and other functions. Each Federal Reserve Bank is best described as a Bankers Bank.
In a nutshell, member banks use their reserve accounts with their reserve banks similar to the way we use our own checking account. They may
deposit in the reserve accounts the checks on other banks and surplus currency received from their customers, and they may withdrawal on the reserve.
Thus a bank with excess in the reserve requirements can enlarge its extension of credit (loans). However, let's not forget that the Fed has the

The Financial Crisis Of 2008 And How It All Started As...
This paper is about the financial crisis in 2008 and how it all started as well as the ways that banking has operated and is operating today. I have
watched all of Chairman Bernanke's college lecture videos and he has gone into many different aspects of banking including how the Federal
Reserve began, what lead to the recent financial crisis, and what we are doing as a nation to see what we can do to help eliminate from happening
again. First, I will be summarizing Chairman Bernanke's four lectures he did in 2012 at George Washington University. Chairman Bernanke's first
lecture was more focused on the history of central banking and how the Federal Reserve of the United States of America began. What Bernanke
talked about is how central banking is essential to all modern nations that revolve around their own personal currency. An example he gave is of
course our Federal Reserve in America and the EU Federal Bank that revolves around the euro. He also delved into the policy tools that the Federal
Reserve is responsible for. Some of these tools are monetary policy. This policy is important for maintaining macroeconomic stability by adjusting
interest rates to help influence spending, production, employment, and inflation. Another one of the tools that the central banks are responsible for is
the provision of liquidity which deals in the financial crises and the handing out of short term loans to help ease financial panics. This tool is also the
"lender of last resort" which

Rebecca Felton The Power Of Women
The Power of Women On November 21, 1922 Rebecca Felton was the first woman to have a seat in the US senate. In 1964 Chase Smith was the first
woman to be nominated for President. In 1984 Geraldine Ferraro was the first woman nominated for Vice President. There haven't been many powerful
women but that doesn't mean there aren't powerful woman. Woman like Angela Merkal, Jannet Yellen, Hillary Clinton and Park Guen
–hye can be just
as powerful as men or even more powerful. These woman have all made history and hopefully one day all woman will be seen equal to men. Angela
Merkal also nicknamed "Mutti" meaning mother of the nation is serving her third term as a German Chancellor after September 2013 election. Only
two post–war German leaders ... Show more content on Helpwriting.net ...
Park was appointed Vice Chairperson of Grand National Park and later won election as the parties Chairperson. On December 19, 2012 Park became
South Koreas first female President. Park was instated as the Nations acting First Lady. "Park continued to flourish in the South Korean political
world," said the Biography Website. She later served as a member of the National Assembly and was re–elected four times, serving in five consecutive
national assemblies. Park is named "Queen of Elections". During Parks presidency she has eased the tension between North Korea and South Korea
and are working on engagement. Park Guen–hye can be as powerful as men or even more

A Monetary Shock Affect The Economy
Monetary policy is used by the Federal Reserve to achieve two goals, which are to create maximum stable employment, and create stable prices which
in turn causes stable inflation. In the Fed Chairman game, it asks you to control and adjust the federal interest rate. Adjusting the federal interest rate
can cause more stable employment and can help the economy become steady. When you are given this control in the game you essentially are
performing monetary policy. A monetary shock can affect the economy by increasing and decreasing themoney supply. A monetary shock can affect the
unemployment rate, and could cause the nation's economy to weaken. This can also cause a major problem for interest rates. For example changes in
short term interest

The Federal Reserve System
Even before the creation of the Federal Reserve, banks were used by the public just as we use them today. Deposits were made into savings
accounts. Loans were taken out to mortgage a home or finance a new business. Banknotes were issued and spent when the public borrowed from the
banks. Borrowers spent these banknotes just as paper money is spent today. These bank notes were valued as money since they were backed by the
promise that they would be exchanged on demand for either gold or silver.
There was the occasionally belief on behalf of the public that banks would not be able to, or outright refuse to honor their banknotes. This fear, if held
by enough of a community, could lead to a run on the ... Show more content on Helpwriting.net ...
These actions led to the fall in prices of securities. Loans were liquidated and borrowing from banks and other lenders became difficult. Interest rates
would rise rapidly and sharply. This type of financial hardship led to the liquidation of bank credit. Over a long enough span, this liquidation would
lead to money crises (Federal Reserve System 5th ed pp. 10–11). These periods of financial panics along with the inelastic money supply had long
beleaguered the country. Bank failures, business bankruptcies, and unstable economic development were results of the lack of a central banking system
(Federal Reserve System 8th ed. pp. 6–7). The Panic of 1907 was a bank run of epic proportions that exacerbated the problem. Depositors withdrew
their savings from the second and third largest banks in the country. These banks were not able to generate enough funds to cover the demand and
subsequently closed their doors. Their closings rapidly spread fear across the country leading to one of the largest runs on the banks the nation had
ever witnessed (Schlesinger pp. 41).
Fortunately, J.P. Morgan, the exorbitantly rich New York businessman came to the aid of the financial system. He organized a group of bankers who
shifted their funds to the failing banks. Depositors were assured their savings were protected and could be withdrawn whenever they wanted. The
demand subsided and

Leadership Qualities of Alan Greenspan
Introduction
Alan Greenspan spent five terms as chairman of the Federal Reserve. In that time, he helped shape this nation more than many people realize. In this
leadership paper, I will be showing his leadership qualities in his early years all the way through today. I will also be showing what his past actions
and spoken words have done to change things today even though he is out of the Board of Governors. It is best to start out at the beginning to learn
more about this very articulate person.
Biography
Alan Greenspan was born in 1926 in New York City. His persistence in school helped him achieve his B.S. in Economics and then an M.A. in
Economics at New York University. He achieved his Ph.D. in Economics from New York... Show more content on Helpwriting.net ...
Still, a majority of the reviews on his performance remain positive. Even now on the lecture circuit, he is still a very popular man. Greenspan still
works as a private advisor through his company Greenspan Associates LLC. His memoir titled "The Age of Turbulence: Adventures in a New World"
hit number two on the New York Times best–sellers list for non–fiction.
Leadership Analysis
This was the most difficult part for me as I found it hard to find sources close to Mr. Greenspan that spoke to how effective of a leader he was. I
had the opportunity to have lunch with him back in May of 2003 when he visited the Federal Reserve Bank of Dallas. At the time, the one thing I
can say about him is that he chooses his words very methodically. Some of the things he says requires a certain amount of deciphering. One of his
most famous quotes was, "I guess I should warn you, if I turn out to be particularly clear, you've probably misunderstood what I've said."
Lets go back to December 5th, 1996 when Greenspan said "Irrational exuberance and unduly escalating stock prices." Those words alone triggered
markets around the world to decline. The Japanese stock market took a 3.2% plunge and the German market fell 4%. When the stock market opened in
the United States, the New York Stock Exchange went down 145 points in 30 minutes.
A good leader should have the ability to speak articulately. Greenspan goes above and beyond that description. When Alan

Describe the Federal Reserve System and Role If Regulation...
1.Describe the Federal Reserve System. How is it structured? How does it work? What is its role in the economic policy? Cite one example where Fed
policy was applied and what was its impact on the economy.
The Federal Reserve was created in 1913 creating the Federal Reserve System. It is the nation's central bank any bank that uses national in their name
must become a member of the Federal Reserve. There is a seven member board of governors who are appointed by the President and confirmed by
the Senate. The members serve a fourteen year term. The President picks the chairman and the vice chairman and the senate confirms the members for
a four year term. Each Federal Reserve Bank has a board of directors, whose members work closely with ... Show more content on Helpwriting.net ...
I think it is scary when they have so much power and when it goes the wrong direction we the consumer and businesses are the ones who suffer the
most.
2.What is the role of Regulation in the economy? In what ways does the government regulate economic activity? What are the cost and benefits of
economic regulation?
The first board of Federal regulation was established in 1887" congress created the Interstate Commerce Commision to resolve increasing controversies
between the railroads and shippers". The government must make sure that there is enough competition to keep prices low the quality products high.The
role is to maintain efficiencies with natural monopoly and helps avoid market failures. It regulates activity by insuring that companies have healthy
competion and no one company holds a monopoly in the market place. Some of the things that the government regulates are the banking industry,
transportation. Communications and the airline indusrties. The government used to regulate the air traffic controlers making it safer for pilots and
consumers. When the air traffic controlers were deregulated it became evident that it is less safe for pilots and consumers to fly. The air traffic
controlers work longer

The Glass-Steagall Act
Financial historians have disputed the rational for reforming the banking system in the US as a result of the 1920s banking crisis. Calomiris (2010)
argue that there may have been political self–interest incentives as to why the Glass–Steagall Act was enacted. Firstly Steagall had bargaining power as
Chairman of the banking committee in the House of Representatives. Second, the Pecora Hearings populist politicians including Henry Steagall
advocated in favour of small banks contributing in making large bank disliked amongst the public. And finally deposit insurance was introduced as a
temporary system allowing for easy approval in the Congress.
Thought the Great Depression the Federal Reserve followed the real bills doctrine which according

Ben Bernanke: Educating Citizens on Financial and...
Benjamin Bernanke– Former Chairman of the Board of Governs of the Federal Reserve System For any team a dynamic that has a unique
background and skill set will help to address problems dead on (Thompson, 2011). Bernanke would be good to put on an economic crisis team due
to his leadership qualities, his educational background, and his fast thinking under pressure. Ben Bernanke is recognized for his hand in helping
save the U.S. economy during the greatest recession of recent times. Bernanke has a lot of economic crisis exposure and would be able to offer
great decisions and advice to turn the economic woes into economic wins. Bernanke oversaw the 12 US Reserve Banks and has immense exposure to
global financial institutions all across the world. He monitored the financial system as a whole for possible risks to its stability. Bernanke is an
adamant leader who believes in educating citizens on financial and economic literacy. Many times Bernanke was tasked with making economic
decisions extremely fast. Bernanke is accredited for slashing interest rates, establishing new lending programs, extending hundreds of billions of dollars
to troubled financial firms, amongst other financial decisions (Cassidy, 2008). During his tenure as chairman of the Federal Reserve, Bernanke oversaw
the response to the late–2000s financial crisis, something that many never saw coming. Bernanke is extremely intelligent. He taught himself calculus in
high school because his school did not offer the

Federal Reserve Benefits
After the nation's banks were hit hard by a severe financial panic in 1907, the United States President and Congress decided the nation's banking
system needed reformed and strengthened. Subsequently, in 1910, a small group of bankers and politicians secretly met on Georgia's Jekyll Island for
10–days and drafted an outline of a new central banking system that would protect the United States economy from future financial crises and
provide the platform for America to thrive. This outline, known as the Aldrich Plan named after Senate Republican of Rhode Island, Nelson Aldrich
was submitted to congress but was voted down. However, this would later serve as the model for which the Federal Reserve Act was based. The
Federal Reserve Act was signed into law on December 23, 1913, by Woodrow Wilson and established the Federal Reserve, or the Fed, as thecentral
bank for United States.
The Responsibilities of the Federal Reserve
The Federal Reserve was created primarily to be the lender of last resort to provide cash during a financial panic; however, their responsibilities have
evolved and increased over time. In November 1977, Congress expanded the Feds responsibilities with the Federal Reserve Act to include the creation
of monetary policies to promote price stability and the maximization of employment to keep the economy moving ... Show more content on
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The Federal Reserve plays a vital role as the intermediary in clearing and settling interbank payments to assure that the millions of transactions
performed each day are processed safely and efficiently. Acting as the "Banker's Bank", the Federal Reserve Banks provide various services to the
nation's banks such as check processing, electronic transfers, and ensuring there is enough cash in circulation to meet public demand. As fiscal agent
for the U.S. government, the Reserve Banks pay Treasury checks and issue, transfer, and redeem U.S. government

Monetary Policy Paper
Monetary Policy Paper "Monetary Policy is the most significant function of the Fed; it is probably the most–used policy in macroeconomics"
(Colander, 2004, p. 661). This paper will discuss and elaborate on "The Monetary Policy Report" submitted to the Congress on February 11, 2003 and
concepts of Macroeconomics by David Colander. The state of the economy, concerns of the Federal Reserve, and the stated direction of recent
monetary policy will also be discussed.
"Monetary policy is a policy of influencing the economy through changes in the banking system's reserves that influence the money supply and credit
availability in the economy" (Colander, 2004, p. 659). Monetary policy also refers to the actions undertaken by a central bank, ... Show more content on
Helpwriting.net ...
Federal government consumption and investment the part of spending that is counted in GDP rose more than 7 percent in real terms in 2002.
(Government spending on items such as interest payments and transfers are not counted in GDP because they do not constitute a direct purchase of
final production). Reflecting an unchanged stance of monetary policy over most of last year, short–term market interest rates moved little until early
November, when the FOMC lowered the target federal funds rate 1/2 percentage point, and other short–term interest rates followed suit. The Federal
Reserves concerns are many; because of the economic diversity of our country. In November 2002, the fed reduced the targeted federal funds rate
50 basis points, to 1.25 percent. The policy easing allowed the Committee to return to an assessment that the risks to its goals were balanced. The
Fed has inflation expectations well contained, and the additional monetary stimulus seemed to offer worthwhile insurance against the threat of
persistent economic weakness and substantial declines in inflation from already low levels. Federal Reserve policymakers believe the most
probable outcome for this year to be a pickup in the pace of economic expansion. The central tendency of the real GDP forecasts made by the
members of the Board of Governors and the Federal Reserve Bank presidents is 3.25 percent to 3.5 percent, measured as the change between the final
quarter of 2002 and

Money, Banking and the Economy
California State University Los Angeles
Department of Economics
Economics 303
Money and Banking and the Economy
Prof. Giorgio Canarella
Fall Quarter 2012
Midterm 2
Return your work Saturday, November 10, at 1:00 pm
Problem (50 points) Use a blue book.
You are given the following estimates about the monetary economy of the US:
C/D = 0.1; T/D = 2; ER/D = 0.2, [pic], [pic], MB = 1000. Compute the money multiplier, the money supply, the level of currency and checkable
deposits, the level of time deposits and excess reserves, and the level of total reserves and required reserves. Use the model of money supply
determination discussed in class. Show your work.
Multiple Choice Questions (50 points) Use a scantron.
1)
As of 2006, about ... Show more content on Helpwriting.net ...
B) established the Federal Reserve System. C) separated commercial banking from investment banking. D) put a tax on the issuance of bank notes by
state banks.
13)
The Glass–Steagall Act of 1933

13)
______ A) separated commercial banking from investment banking. B) prohibited branching across state lines. C) forbade the opening of nonbank
banks. D) made bank holding companies illegal.
14)
Regulation Q
14)
______ A) required all banks to hold reserves against demand deposits. B) placed ceilings on allowable interest rates on time and savings deposits. C)
prohibited interstate banking. D) broadened the basis on which the Fed could make discount loans.
15)
NOW accounts were developed in order to
15)
______ A) provide banks with a liquid, interest–earning asset. B) provide banks with a checkable deposit on which they did not have to pay interest.
C) circumvent Regulation Q. D) provide banks with a means of earning interest on the funds in their reserve accounts with the Fed.
16)
The British central bank is known as
16)
______ A) the British Federal Reserve.
B)
the Bank of England. C) the Bank of London.
D)
the Bank of the Empire.
17)
The Japanese central bank is known as
17)
______ A) the Grand Nippon Central Bank.
B)
the Bank of Japan. C)

The Federal Reserve System: The US Central Banking System
The Federal Reserve System is commonly referred to as the U.S. central banking system. Congress discovered this system in 1913 with the purpose of
providing America with a stable monetary and financial system. The Federal Reserve has three components, which includes the Board of Governors,
the Federal Open Market Committee, and the Federal Reserve Banks. The primary functions of the Federal Reserve consists of conducting monetary
policy, banking supervision, promoting stability for the financial system, and providing banking services. Moreover, the Board of Governors are an
independent governmental agency who have the responsibility of overseeing the Federal Reserve System. The board members are selected by the
President and approved by the Senate. The board consists of seven ... Show more content on Helpwriting.net ...
The banks are located in St. Louis, Kansas City, Cleveland, Boston, San Francisco, New York, Chicago, Philadelphia, Dallas, Minneapolis, Atlanta
and Richmond. Reserve Banks can also be referred to as District banks. The board of directors from the Reserve Banks are responsible for managing
the District bank. The directors designate the President and Vice–President of the bank and is confirmed by the Board of Governors. Likewise, the
Federal Reserve System performs many responsibilities, including executing the Monetary Policy. The Federal Reserve manages inflation through
controlling credit, which is a significant factor affecting money supply. Contractionary monetary policy is utilized when interest rate rises, which
causes credit to become more expensive and lessens the money supply. However, when there is not a possibility of an inflation, the Federal Reserve
utilizes expansionary monetary policy. This makes credit accessible by lowering interests rate, leading to employment and business

The Volcker Rule, named after the former chairman of the...
The Volcker Rule, named after the former chairman of the United States Federal Reserve Paul Volcker, was first publicly discussed in January 2010.
President Obama had proposed the Volcker Rule as an additional ruling to the Dodd–Frank Wall Street Reform and Consumer Protection Act, a bill that
was at the time already under consideration by Congress. The Dodd–Frank Wall Street Reform and Consumer Protection Act, also known as the
Dodd–Frank Act, was projected to help further promote and regulate financial stability of the United States' economy, especially during the Great
Recession, which officially lasted from 2008 to 2010. The general purpose of this Act is to regulate the financial regulatory system by avoiding any
excessive or... Show more content on Helpwriting.net ...
This Act contributed to the separation of these two types of banking firms, in a way that it would prevent any engagement in risk–taking investments or
speculation and instead, investing in corporations to stimulate growth, which in return would benefit the depositors, American taxpayers, and then the
overall economy. Nevertheless, this Act was repealed in the late 90's under the Clinton administration, which rapidly created disorder in an unregulated
system of bank funds. The Volcker Rule serves to create a resolution after the repeal of the Glass–Steagall Act, especially more so since it was used as
a basis as an addition to the Dodd–Frank bill.
While financial banks were inadequately controlled by regulatory agencies, there was a necessity for fresh policies to resolve these issues. Prior to the
Volcker Rule becoming implemented, the crooked financial activity done at the time had affected the clients of the banks. The complexity of the
regulations caused dissatisfaction for the clients and customers and eventually affected the overall business flow of the bank institutions. There was a
strong need for new procedures and restrictions before the banking industry would have another breakdown and in the worst case, cause another
financial crisis within the American economy. The biggest problem during this crucial financial time included how the banking industry was
consistently earning large amount of money from these high–risk trades with the institution's own

The Federal Reserve Board Is A Regulating Body That...
The Federal Reserve Board is a regulating body that determines how United States will lend money by coordinating the banks and defining the value
of the dollar. A Governor on the Federal Reserve board communicates with the twelve region 's bank presidents, economic analysts, and their regional
directors, and collectively define the dollar by selling long–term and short–term bonds that advance a percentage of the worth. Once an agreement has
been made upon fraction percentage, banks are required to maintain that stated amount in a Federal Reserve vault, or the bank's vault. The Federal
Reserve loans temporary funds to the banks that do not meet the reserve requirement in the form of a short term loan, usually overnight. A large
amount of the Federal Reserve Board's time is spent discussing fractions of a percent on specific money–related rates which steers the economy.
THE UNITED STATES FEDERAL RESERVE 'S IMPACT ON THE ECONOMY
The Federal Reserve was created by an ACT of the U.S. Congress in 1913. Markets very often were unstable due to the public having very little faith
and trust in the private banking system, which was self–evident during several periods in our countries history, most notable the run on the banks in the
1920s and 1930s. The Federal Reserve was created as an independent entity, however it is subject to oversight from Congress, and Congress
periodically reviews the Fed 's activities. The chairman periodically appears before congress to outline and explain

Federal Reserve System Analysis
The Federal Reserve System regulates the economy of the United States through monetary policy. For instance, the "Fed" keeps the federal fund rate
low to provide lower mortgages, increases investments, and boosts the economy. Alternatively, the Fed manages the economy when the opposite effects
take place. When the federal fund rate is high the mortgages increase, reduces investments, and will slow the economy, which means the Fed has to
manipulate the interest rates and try to shape economic potentials for the future. There are 12 regional Federal Reserve Banks in the Federal Reserve
System which rely on an intrinsic technological infrastructure to keep the member banks connected and all data comprised from all regions backed–up
in–case of ... Show more content on Helpwriting.net ...
The American people take precautions they see in their best interest when news of catastrophe and possible economic unbalance is being reported.
While the Board of Governors and the Fed Chair work in the headquarters building, there is no actual fiscal work being done in this building.
Therefore, there will be no physical loss of stockpiles of money or securities. The biggest possible loss of assets would be if the total catastrophe of
the building took place with the Board of Governors in the building resulting in the deaths of the seven board members and countless number of
employees in the building. Without the appointed board members, the Federal Reserve System may not have a backup plan consisting of alternate
board members to fill the role of the recently departed. Without a Board of Governors to oversee the policies and practices of the banks, then more
economic ruin could be on the horizon. Who will be responsible for maintaining the economic flow that keeps interest rates down and dollars
circulating? This uncertainty will keep Americans from spending more than what is needed for essentials, ultimately slowing the economy, and an
absent Board of Governors and Chairman to execute the plan to boost the economy. For instance, the Chairman of the Board of Governors not only
manage the member banks and presides over the Board of Governors, but also has to testify before Congress twice a year. In the event that there was
no contingency plan for an alternate Board of Governors, the member bank presidents will have to oversee themselves until the President appoints new
members and Congress

Alan Greenpan Biography
Alan Greenspan served as chairman of the Board of Governors of the Federal Reserve System for five consecutive terms. He first filled an unexpired
term as a member of the Board of Governors as chairman on August 11, 1987. On January 21, 2006, his last term ended. He was appointed chairman
by four different presidents.
History of Alan Greenspan
Alan Greenspan was born in the Washington Heights area of New York City on March 6, 1926. He studied music at Juilliard School where shortly
after he embarked into a career in financial consultation. Before his 1987 selection as the chairman of the Federal Reserve Board by Ronald Reagan
he had already financially advised several presidents. Greenspan shaped the United States monetary policies over a span of a two decades as his
position as chairman up until 2006.
During his time as a student at New York University, Greenspan worked on Wall Street. He worked for the firm Brown Brothers Harriman in the
equity research department before working his way to leadership of Townsend–Greenspan & co, which was a consulting firm in 1955. He held this ...
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During the administration of Democratic president Jimmy Carter in 1981 to 1984, Greenspan chaired the bipartisan National Commission on Social
Security Reform.
From 1940 to June of 1943 Greenspan attended George Washington High school. He was a musician where he played both the saxophone and the
clarinet. He went on to further study clarinet at the Juilliard School from 1943 to 1944. In 1945, Greenspan graduation with a B.A degree in
economics summa cum laude from New York University in 1948. He went on to graduate with his M.A degree in economics at Colombia University
in 1950. He even pursued advanced economic studies but eventually dropped out. Lastly, he obtained his Ph.D. in economics from New York
University in

The Federal Reserve System
The Federal Reserve System was founded by Congress in 1913 to be the central bank of the United States. The Federal Reserve System was founded
to be a safer, more flexible, and more stable monetary financial system. Over the years, the role of the Federal Reserve Board and its influence on
banking and the economy has increased. Today, theFederal Reserve System's duties fall into four general categories. Firstly, the FED conducts the
nation's monetary policy. The FED controls the monetary policy by influencing credit conditions in the economy. The FED measures its success in
accomplishing these goals by judging whether or not the economy is at full employment and whether or not prices are stable. Not only ... Show more
content on Helpwriting.net ...
The act stated that its purposes were "to provide for the establishment of Federal reserve banks, to furnish an elastic currency, to afford means of
rediscounting commercial paper, to establish a more effective supervision of banking in the United States, and for other purposes." After the
implementation of the Federal Reserve, several laws were passed to supplement it. Some of the key laws affecting the Federal Reserve Act are the
Banking act of 1935; the Employment Act of 1946; the 1970 amendments to the Bank Holding Company Act; the International Banking Act of 1978;
the Full Employment and Balanced Growth Act of 1978; the Depository Institutions Deregulation and Monetary Control Act of 1980; the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989; and the Federal Deposit Insurance Corporation Improvement Act of 1991. In two of the
above–named acts, Congress defined the main goals of national economic policy. These acts are the Employment Act of 1946 and the Full
Employment and Balanced Growth Act of 1978. The main goals of the Federal Reserve are economic growth, a high level of employment, stable
prices, and moderate long–term interest rates. The Federal Reserve System is considered to be an independent central bank. It is an independent central
bank only in the sense that its decisions do not have to be passed by the

Essay about Federal Reserve Bank
Federal Reserve Bank
Introduction
Federal Reserve System, commonly referred to as Fed, was established in 1913. This was after American congress passed the Federal Reserve Act in
December the same year, establishing a new set of institutions which were meant to govern the relationship between banks, the government, and the
production of money (Broz 1997 p. 1). The Federal Reserve System divides the nation in 12 districts, each with its own federal reserve bank (Boyes &
Melvin, 2006). Overall administrative structure of the system consists of: Board of Governors. The board is headed by a chairman who is appointed
by the president to a four year term (Boyes & Melvin, 2006). The chairman serves as a leader and also as a spokesperson for ... Show more content on
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This role is achieved through the implantation of the monetary policies. According to Arnold (2008), Fed has several tools at it disposal that it uses
in the monetary polices. These are; the open market operations which involve buying and selling U.S government securities in the financial markets.
Further the bank is charged with the responsibility of determining the required reserve ratio. This ratio is given to the commercial banks dictating the
minimum amounts that they should hold in to their accounts as deposits and for lending. Finally the Fed sets the discount rates putting in to
consideration the overall market rates s well as desired effect on borrowing that the Fed seeks to achieve. In addition to these three major roles, as a
bank, the Federal Reserve Bank can play the roles played by the commercial banks as the rules are not entirely prohibitive as far as this duty is
concerned.
Apart from the main function of monetary policy formulation and implementation, Arnold (2008), also gives other functions of the Federal Reserve
System which include supplying the economy with paper money (Federal Reserve notes) in addition to serving as the lender of last resort. Being the
last means that when other banks, especially the commercial banks, suffer from cash management or liquidity

Alan Greenspan Pros And Cons

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