Federal Reserve and its role in the economy

Federal Reserve informally called fed is an independent organization established by the government of United States of America through Federal Reserve act in [1913], to act as the Central Bank of the America (Flaherty 40).Advertising We will write a custom essay sample on Federal Reserve and its role in the economy specifically for you for only $16.05 $11/page Learn More The Federal Reserve was formed at a time when there were numerous problems that were associated with the banking sector that made the Americans’ lose faith with the banking system. Just to mention a few; before 1913, there were more than 30, 0000 currencies, banks had problems in moderating these currencies since there was no unifying value currency. The existing banks at times were not able to meet their customers’ withdrawals rate due to fund deficit that was experienced frequently. These problems led to frequent collapse of the banks hence having negative impact on the e conomy of the United State of America. Generally, the main reasons why the Federal Reserve was established was because, they wanted to reorganize the banking system and come up with more stable and standard monetary system that could be used in the united state of America. Federal Reserve was also formed to control both the prices of commodities and currency flow in the market. So from all this reasons we can see that it played a major role in the inflation and recession prevention (Wueschner 23). Federal Reserve is a non-profit making entity that performs both public and private functions .However, any profit generated by the Central Bank after the payment of all employees and giving 6% of divided owned by the Capital Investment to the members’ banks. The remaining money is plowed to the government treasury. For example, in 2009, Federal Reserve generated a profit of 45 billion dollars that was plowed into the treasury (Colin 1). There are seven members who make up the Board of Governors in the Federal Reserve’s (Flaherty 42).They are usually appointed by the President to run an independent Federal Government Agency which is based in Washington D.C. and serving a non-renewable period of 14 years. Their main functions are to set up Monetary Policy and managing the government money. It has also 12 Regional Reserve Banks which does the function of implementing policies and managing the financial institutions with the help of their own directors that is composed of the bankers, general public and business people (Epstein Thomas 45). The directors run a term of five years.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Regional Reserve Banks act as intermediate between the banks and the Federal Reserve as they offer banking services like check processing, Federal wire, U.S treasury banking and many others. They also ensure appropriate supervision and regul ation of all the bank operations. Lastly, they provide discount window by giving temporary financial assistance against collateral to depository institutions. It has Federal open committee which is given the mandate to control the operations at the U.S.A open market (Epstein Thomas 47). It is headed by the New York Federal Reserve bank’s president who works together with the seven governors and four reserve bank managers who rotate in shift every year (Flaherty 43). Federal Reserve has also private U.S.A banks who become members by subscribing a certain amount to non transferable stock to their regional Federal Reserve Banks and lastly advisory councils. Federal Reserve is a non-profit making organization that supports itself through the various activities that it is involved in. It gets interest from government securities through open market operations. It also gets interest and profit from the foreign currency exchange investment. Federal Reserve Bank gets interest from th e discount rate they put on the loans given to the depository intuition (Patrick 46). The role of the Federal reserves in economy can be clearly depicted from the functions it performs. Federal Reserve is the monetary policy maker that ensures that the economic recession and inflation is controlled, it ensures that the banking system of payment within the United State of America is stable and can be trusted and moreover being the government central bank, the Federal Reserve ensures there is effective services offered to the state and the general public. Let’s look at how the Federal Reserve performs its functions that greatly influence the economy of the United State of America. Fed uses Federal open market committee to make decision on the flow rate of the money to the market. Federal Reserve can either increase the money flow rate by purchasing securities from the banks which are done by adding credit to banks’ reserves, this forces the banks to keep these excess fun ds to their reserves or even loan it to other bank resulting to more money in the banking system. These money end up in the public hands due to loans offered by banks at a low interest rate resulting to high purchasing rate hence stimulating the economy. Federal Reserve can also decide to decrease the money flow rate by selling their securities resulting to reduction of money in the bank reserves (White 327). Unfortunately, this leads to low consumers spending rate since there will be reduction of the loans issued by the banks with high interest rate attached to them and this slows down the economy. At this particular time people tend to spend less and consider short term planning over long term planning.Advertising We will write a custom essay sample on Federal Reserve and its role in the economy specifically for you for only $16.05 $11/page Learn More Federal Reserve also controls the money through the reserve requirement. Reserve requirement is the a mount of money that a bank has to have in its reserve either as interest bearing or non interest bearing to enable it to serve its customers efficiently. This has enabled the banks to cub the problem of not being able sustain its customers’ withdrawal due to lack of funds. The reserve required will always vary as per the banks account totals. The amount set as reserve greatly influence the amount of money possessed by the banks hence having an impact on the amount being loaned. Taking for the example, if the reserve percentage is lowered, the banks tend to have a lot of money to loan hence increasing the amount of the money in the market and in contrast to when the requirement is raised, as the banks tend to have low cash hence reducing the amount money to be loaned resulting to low money flow rate. Incase the banks reserve goes below the required level, the affected bank can decide either to borrow some loan from the Reserve bank or any other bank. This is another way in whi ch Federal Reserve policies affect the economy as money loaned to the banks has got interest rate attached them. The federal reserves usually advices the banks against going for loan unless for emergency reasons. Discount rate identifies the changes in the monetary policy as high discount rate shows that there are tight policies while low interest rate shows loose monetary policies in place. If the interest rate is high, the banks too attaches high interest to loans given to its customers and if there is low interest on the federal reserves loans, so happens to loans given to the public. The federal funds rate affect the economy as it varies depending on the supply and demand of the reserves. Federal Reserve comes up with rule that governs the financial sector of the government .These rules are set up at the head quarter by the Board of Governors and directives given to the Regional Reserves that does the implementation and supervision of all the banks within their jurisdiction (Whi te 330). The Fed ensures the general public interests are taken into account especially whenever some banks express their interest of merging. They ensure that any step taken by these banks do not have negative impact on the local public hence it act as financial institutions regulator. The Federal Reserves is the bank to banks (Sue 57).The Regional Reserves ensure that there is continuous flow of the services and transactions required by their regional banks. Some of the services offered are the money banking for the banks, check processing and clearing, bank loaning, electronic money transfer and many others. Most of these services are usually offered at a few or at interest rate which is a major source of Fed and government revenue.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Federal Reserve is the bank of the united state of American government. It is in charge of the government treasury and it does a lot of government businesses and transactions on the behalf the government. Works Cited Colin, Barr. â€Å"The Fed’s stuck in the penalty box† Retrieved from CNNmoney.com/Fortune, on March 3, 2010, 11:38 AM ET. Web. Epstein, Gerald, and Thomas, Ferguson. â€Å"Monetary Policy, Loan Liquidation and Industrial Conflict: Federal Reserve System Open Market Operations in 1932.† Journal of Economic History .New York: New York Times,2002. 30-50. Print. Flaherty, Edward. â€Å"A brief history of central bank of United State of America. † 23-124. University of Groningen, Netherlands,1997.Print. Patrick, Chari. â€Å"Modern Macroeconomics in Practice: How Theory Is Shaping Monetary Policy.† 12-456, Minneapolis: Federal Reserve Bank of Minneapolis, 2006. Print. Sue, Patrick Garland, Reform of the Federal Reserve System in the Early 1930’s: The Politics of Money and Banking. New York: New York Times, 1993. 24- 167.Print. White, Lawrence. â€Å"The Federal Reserve System’s Influence on Research in Monetary Economics.† 325-354, Chicago: University Press, 2005.Print. Wueschner, Silvano . Charting Twentieth-Century Monetary Policy: Herbert Hoover and Benjamin Strong, 1917-1927. Westport: Greenwood Press, 1999. 56-87. Print. This essay on Federal Reserve and its role in the economy was written and submitted by user Phoenix Vazquez to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

GLUCOSE EFFECTS ON MEMORY essays

GLUCOSE EFFECTS ON MEMORY essays NEUROPSYCHOLOGICAL TESTS IN ELDERLY HUMANS The purpose of this kind of test was to find out if the level of glucose had any kind of effect on the memory. Another goal of this experiment was to determine whether glucose affects memory on other tests as well, and whether the glucose effects are restricted to memory or whether they include effects on overall cognitive, attention and motor functions. The test was done on the subjects, 17 volunteers between the ages of 62-84. The subjects took the test in the morning after a 9 hours fasting. Their blood glucose was measured at the beginning of the test, then the subjects were given sweetened beverages with either glucose (50g) or saccharine (23.7 mg). Blood glucose levels were measured every 15 minutes thereafter for the next hour and a half. The subjects were asked to read a list of words and remember them. The test was scored for long-term storage, retrieval and short-term retrieval. Also other tests were considered such as: logical memory, digit span, complex figures, cognition, attention and motor. Logical memory is a modified version of the Wechsler Memory Scale that is hearing an audiotape and asks the subjects five minutes later to recall the passage. Digit span that include forward and backward digits. Rey Oterreith compex figure: subjects were asked to copy a complex design following which they were asked to draw the design from memory. Cognition: this test assesses verbal intelligence by requiring the subject to choose the picture which best matches each of a series of words from a set of four pictures. Attention is a timed task in which subjects mark designated letters from a large list of letters. Motor: subjects were required to press down a lever attached to a counter as quickly as possible over a ten seco nd period and were given five tries with each hand. The results were obtained and analyses have been made according to the rel ...

Understanding strategic management Essay Example | Topics and Well Written Essays - 2250 words - 1

Understanding strategic management - Essay Example Decision makers and managers must apply their strategic skills in the process of managing an organisation. Increasing competition and changing nature of demand are the two prime reasons behind the increasing demand of strategic management process in the contemporary world. This paper will attempt to assess a company by using strategic management tools and models. The models and tools will be used for two proposes i.e. for environmental scanning and for strategy formulation. Environmental scanning will include internal and external analysis. The next section will show the company’s strategic position in the market. Based on the analysis and findings, relevant strategies will be recommended. Tesco Plc has been selected for the purpose of strategic management analysis. Tesco is a UK based company and is operating in the global retail industry. However, in this paper, the primary focus will be on the UK retail industry. Tesco Plc is a UK based leading retailer. The company was founded by Jack Cohen in 1919. The company was first listed in London Stock Exchange in 1947 and it launched its corporate website (Tesco.com) in 2000 (Tesco Plc-a, 2010). The company offers a wide range of product and retailing service through its numerous superstores. Tesco offers homes products, fast moving consumer products, clothing, consumer durable, electronics etc (Tesco-a, 2010). The latest annual report of Tesco disclosed that it owns 4810 stores in the global market and nearly 472000 employees are working with Tesco (Tesco Plc-b, 2010). It experienced very fast growth and after its global expansion, the company became the third largest retailer in the world after Wal-Mart and Carrefour. The company has developed its reputed brand image in the market. Specially, in UK, the company has gained a large share of the market (Silverthorne, 2010). Tesco has developed an effective and efficient strategic management procedure in

The role of personnal selling in KFC Essay Example | Topics and Well Written Essays - 2500 words

The role of personnal selling in KFC - Essay Example KFC came to Singapore in 1977 with its first outlet on Somerset Road. It took the firm 30 years, to establish over 70 outlets which signify the popularity of the chain (KFC 2009). KFCs menu includes Original Recipe chicken – having the same exuberating recipe Colonel Harland Sanders created more than a half-century ago. Customers around the world also enjoy a variety of more than 300 other products – like the Shrooms Burger in Singapore (KFC 2009). KFC Singapore’s performance in 2007 was at its peak. The sales climbed 3.0% to RM280.2 million from RM272.0 million in 2006; while profit before tax augmented 12.3% to RM10.1 million from RM9.0 million the year before (QSRbrands 2007). KFC Singapore attained these record sales with their varied deals throughout the year year. In March, KFC Singapore used its energetic 30th Anniversary media campaign to introduce the new KFC logo, uniform and packing. KFC Singapore also coupled this with their toasted range with Cheesy BBQ Meltz in April the same year. By the end of the year, KFC Singapore had 69 stores, with four new restaurants, five repositioned and eight closures (QSRbrands 2007). But due to the global crunch, sales are declining overall. New ideas and menu items are needed at for the business to keep up with its performance in 2007 (Uniquely Singapore 2009). Moreover cost effective methods of marketing products have to be utilized like personal selling to boost the sales graph which is now taking a downward trend. Technology -Technology plays an eminent role in the growth of an economy. Singapore has the largest and most IT-savvy Port in the world which enables businesses to have efficiency in the supply chain (Field 2002). The country has a very sophisticated telecommunications infrastructure which gives the opportunity to reach new customers and keep a closer check on their preferences (Field 2002). Economic - Singapore is considered as one of the best economies for

Take home exam for the class (economics of race and gender ) Essay

Take home exam for the class (economics of race and gender ) - Essay Example Let us take the case of the United States: Azimzadeh says â€Å"most Americans believe in a three-class model - the rich, the middle class, and the poor. America is a diverse society considering its culture, economy, politics and ideology which make different levels of wealth, income, education, occupation and social behavior. It is not easy sometimes to classify certain groups or people in a certain class. One approach which is more common is based on cultural and economic diversity of the people and defines more of them in middle class† (2008). In terms of economics, those belonging to the upper classes have very high living standards and occupy top positions in government or corporate organizations, the upper middle classes composed of highly-educated and well-paid professionals also maintain good living conditions while the lower middle classes made up of semi-professionals or ordinary workers have to cope up with meager resources. In a political scene marked by free enterprise, the upper classes have more privileges and benefits that those who belong to the lower middle classes. They are accorded more rights and are considered more influential and have easier access to opportunities, income and other rewards. There is the so-called economic model of time use wherein households rationally and efficiently allocate time, typically through specialization of one partner in paid work and the other in unpaid work. The first condition is human capital which explains that men have more experience and education than women and biological differences, since women are those that bear children and care for them. The second is, the person with more power will do lesser unpaid work because household labor is less likable than paid tasks. The third is that although the experience and education of women have gone up during the past thirty years, they are still less paid compared to men. The fourth condition is that

The Nature Of The State Sovereignty

The Nature Of The State Sovereignty In order to complete this analysis, it is necessary to examine the history and the evolution of concept sovereignty. Hence I will firstly define notion of sovereignty and its origins. In the latter part I will present how sovereignty has changed over period of time, particularly after the Cold War. In the final part I will provide conclusion summoning if the change of sovereignty nature has been positive or negative. Sovereignty is relatively recent innovation in international relations. It was first developed in Europe, at the peace of Westphalia in 1648. Treaty of Westphalia has been the outcome of around 8 decades of wars fought in name of religions. The result of Westphalian Treaty was establishment of new international law system which was going to be applied to the modern states. The underpinning of this system is the sovereign character of the state and the prevention against external interference in internal affairs by other states. Sovereignty is one among the inherent and essential elements of a state, which defines its supreme power and its own independence.  [1]  Sovereignty has two dimension and these are: authority of internal government and territory. Leader of the government has an ultimate and legitimate right to exercise power within the borders of that particular state and suppose to be obeyed by its citizens.  [2]  Noteworthy, the core elements of state sovereignty hav e been established in 1933 Montevideo convention on the Rights and Duties of States. They include three main requirements: a permanent populations, defined territory and body of power functioning government.  [3]   Thomas Hobbes, John Locke and Jean Jacques Rousseau were most important members of the social contract school. They shared the same idea about the concept of sovereignty. They believed that whatever are origins of sovereignty, it all comes down to contractual agreement between the members. However, their theories differed significantly in other respects.  [4]   State sovereignty has for the past several hundred years, been a defining principle of a relations between states and in a way a foundation of worlds order. This concept is one of the most important principles of United Nation Charter and it is still important component of the maintenance of peace in the world and defence of weak states against the powerful ones. At the same time, however the concept has never been unchallengeable as such, either in law or practice as the formal definition may suggest. According to former secretary General Boutros Boutros Ghali; The time of absolute sovereignty has passed; its theory was never matched by reality.  [5]   Knowing that the international rules of the notion of sovereignty set out in the Treat of Westphalia have been modified over the years, most recently and significantly by the Charter of the United Nations they remained merely intact until June 1990, this was when UN Security Council approved Resolution 1244. According to that resolution the attacks in Kosovo were justified. The post-Cold War world has segued into what might now be called post-Westphalian world. Resolution 1244 is the momentum of a series of acts of decisions and actions which, taken together, change the legal and theoretical structure of international relations. This means that the first principle of the nation sovereignty is the power that the nation holds as a State those in power are in charge.  [6]   In practice international legal sovereignty and Westphalian sovereignty are the key manifestations of sovereignty. In particular cases, for example; Somalia or Andorra, these attributes camouflage glaring failings in other areas ostensibly central to sovereignty. The humanitarian intervention in Kosovo and the invocation of self-Defence as a rationale for the intervention in Afghanistan are examples of rights reserved for powerful states which are not intended for use by the majority of states.  [7]   As Krasner summarizesthe principles associated with both Westphalian and international legal sovereignty have always been violated.  [8]   After the end of Cold War, the sovereignty of each nation involved in the war has changed significantly and quite diminished. Meanwhile the Cold War is the longest war that took place between 1940-1980 involving United Union of soviet socialist and America and it was merely a war of rights and beliefs. The changes to the notion of Sovereignty changed and the changes were influenced by the development that happened after the Cold War.  [9]   Pragmatically, concept of sovereignty has often been challenged and violated by the powerful states. In current globalizing world, it is recognised that cultural, environmental and economic influences neither respect borders, nor require an entry visa. The concept of state sovereignty is well stretched in political and legal discourses. Furthermore, states borders have diminished significantly as a result of contemporary international relations arena. Current international disorder and suffering are the main causes of technology and communication fast development. Consequently, perspectives on the range and role of state sovereignty have, especially over the past ten years, evolved very quickly. Today, sovereignty confronts the challenge of globalism. It is commonly held that the conditions which support globalism, such as technological advances, the communications revolution, and advances in business organization do not necessarily promote sovereignty. Furthermore political activism, terrorism, and organized crime conspire to undermine territorial boundaries and permit the exchange of science, culture, political economy, and the growth of beneficent and malevolent global civil society. However according to Anthony Coughlans effects of globalization o the concept of the sovereignty of Sate is often taken out of context or exaggerated. In his view States have always been interdependent to some extent. In his opinion there was more to globalisation in the late 19th Century, such as free movement of labour, trade and capital, although the volumes involved were smaller than today. In that time most states were economically more powerful due to international businesses. In Coughlans view Modern States do more for their citizens and are expected by them to do more and impinge more intimately on peoples lives than at any time in history.  [10]   Sovereignty may undeniably be strengthened as it changes to meet new needs and opportunities. In other ways, sovereignty may be limited in its capacity to deny international responsibilities and domestic obligations. An analysis of the world social process will give a way to a vast number of participants and institutions that comprise the global society. Among these are State sovereigns, international and regional organizations, political parties, business groups, pressure groups, NGOs, and individuals in various roles relevant to social relations within and across State and national lines.  [11]   It should be added that there are many other complex outcomes of this process, which include, for example, the constitutional architecture of the European Union, the African Union, the Organization of American States, and even the framework of military alliances under the changing character of NATO. These regional organizations carry the attributes of authority and control and, in turn, reconfigure the framework of decision-making competences that are exclusive to the sovereign State, those which are sometimes shared concurrently with the nation-State, and those which are to be exercised in complex patterns of sequential authority. This makes the interplay between the constitutional architecture of the various forms of political and legal association under current world order conditions, a complex and technical, but vitally important matter. Among the important outcomes of the world community process is the relatively specialized process of effective power, which involves connecting linkages between interactions and inters determination operating in micro social institutions, large-scale social formations such as the State, even larger aggregates of States, and a still larger and complex world process of effective power. It is perhaps a paradox that sovereign independence is now often accompanied by sovereign membership in various regional associations and international organizations, which juridical limits sovereignty. For example, membership in the United Nations conditions sovereignty; in other words, sovereignty cannot trump the obligations and international responsibilities of the UN. Even more prominent are State claims to associate with supranational regional compacts and, in so doing, abandon some autonomy in exchange for the benefits of membership. Examples of this include the European Union, the African Union, and the Organization of American States. The current crisis of terrorism and world order will tell as much about the changes that international law might secure for the practice of international relations based on the authority of the UN Charter. One trend however, is clear. Sovereignty as State absolutism is no longer a tenable precept in international law and international relations. Sovereignty based on the authority of peoples expectations is a vital and critical element in promoting international peace and security, enhancing human rights and is a basic element in the foundations and possibilities of good governance as well as transparent and responsible authority. To conclude this does not mean the demise of sovereignty but it means change.

Physician-Assisted Suicide Essay - Euthanasia Should Not be Legalized

Euthanasia Should Not be Legalized      Ã‚   "It is conceivable, that life can deteriorate to the point where persons lose their dignity and self-respect and are unable to communicate; life in such a form no longer meets meets the basic criteria of human- ness."   (O'Keefe, A1)   Under these circumstances only should Euthanasia be practiced and then only passively ("pulling the plug").   "Dutch Death", Euthanasia, doctor assisted suicide, whatever you want to call it, it should not be legalized.   Ã‚  Ã‚  Ã‚   People should live their lives for as long as long as it is worth living.   As long as someone can still have experiences and communicate with others, they should go on living. Someone may have six months to live and decides to end their life rematurely, saying that they are going to die anyway, why bother with waiting.   It is the same with anyone. Everyone will eventually die, so why doesn't every one just kill themselves now?   It is because there are things they want to do and see, there is life they still have yet to experience.   The same thing is true for a terminably ill person, they could do alot in that six months. They write an autobiography or a novel, do a lot of reading or traveling, who knows?   It has been said that trials and pain make us stronger.   Even if someone is in pain, that pain could make them mentally stronger than if they give up and take the easy way out.   Life is pain, everyone goes through pain in their lives, but most stick it out to the end, not giving up taking the easy way out.   As long as a person still is able to know what is happening around them and can interact with the world around them it should be... ...hey deemed fit for death.   Then perhaps we would become like a dog or cat and instead of bothering to heal us we would just be put down.   Who knows where it would end.   These examples are pretty radical, but once we take that first step there is no telling where it will end.      Ã‚  Ã‚  Ã‚   Sometimes change is needed in society, sometimes things must change to fit societies needs.   Some things, however, can never change;   it will always be wrong to steal, it will always be wrong to kill, and it will allways be wrong to kill someone. Works cited Henry, Sarah. "The Battle Over Assisted Suicide:   A Time to Die" California Lawyer, January, 1996 O'Keefe, Mark.   "Doctor Assisted Suicide:   Dutch Death" The Oregonian, January 8, 1995.   ppA1+ Shavelson, Lonny.   A Chosen Death;   The Dying confront Assisted Suicide, January, 1994