Banking Regulation Act 1949 as applicable to co operative societies

3.) The Federal Reserve System, or FED is the central banking system of the U.S. It has three key objectives. Maximizing employment, stabilising prices, and moderating long-term interest rates. It can be accurately described as privately owned but publicly controlled because the economy controlls what it does but can not change what it does.

After the American Revolution, the American economy was in financial chambles because of the debt that was created due to the war. Under the new constitution, Alexander Hamilton was appointed as the secretary of the treasury. Knowing the repercussions of how national debt would prevent America from earning the status of a world power like Great Britain, Hamilton urged for a bold proposition that would pay the debt at face value which was highly effective since the debt was paid fully almost two decades later. That was part of his 3 reports that would help the american economy. The institution of a national bank was the second report, he wanted to create a influx of the money supply by issuing out federal bank notes. His final report was about raising government revenue and was established by placing high tariff on imported goods to ensure the stable stream of income for the federal government and to boost the growth of the American

15. What is the primary role of the Federal Reserve? What is the significance of this role?

Hamilton believed that this bank would help the nation by promoting its prosperity as seen on the excerpt from, The Works of Alexander Hamilton, by Henry Cabot which states, “The means by which national exigencies are to be provided for, national inconveniences obviated, national prosperity promoted, are of such infinite variety, extent, and complexity…” Hamilton proposed for this bank to serve for three purposes. The first purpose and main function would be for it to serve as a safe place for the government to keep their funds. Another function of this bank would be to provide loans to the federal government and other banks in need. The final function of this bank would be to control the money-issuing activities of state banks. This bank would help the nation’s wealth by helping small businesses prosper by issuing loans to get them started. It was somewhat difficult for Hamilton’s idea to be passed as a bill but after explaining to President Washington how the creation of a bank did not go against the principles of the constitution. Washington signed the bill after he understood the banks functions. After the bank bill passed, Hamilton’s dream of a prosperous America was slowly coming

conducts the country's money-related approach to advance the stability of prices, increase employment and long-term loan costs in the U.S. economy;

“Hamilton’s dedication to fix america came from his term as secretary of treasury.”(Freeman, Joanne B.). When Hamilton was secretary he was given a large task that could have decided his future. “Given the enormous task of bringing order to the nation's disordered finances, he forged a national financial infrastructure through a combination of administrative organization and bold policies. (Freeman, Joanne B.) Hamilton always had a plan which made him ready he should be honored for how quick witted he was and his speed at solving problems. Hamilton wanted to establish a national bank for america to fix its financial problems. Hamilton did build a system for America, “ He established the Treasury Department, dealt decisively with the nation’s financial crisis, put in place a financial system that remains in the early twenty-first century, and sketched out a plan and justification for the encouragement of manufactures.”(Diarity, William A) Hamilton knew what to do he fought for his plan and he made it a reality. Hamilton’s ideas are around to this day he made America better financially for the

Conducting the nation's monetary policy by influencing the money and credit conditions in the economy in pursuit of full employment and stable prices.

After the Revolutionary War, many of the country’s citizens were in great debit and there was widespread economic disruption. The country was in need of an economic overhaul and the new country’s leaders would need to decide how to do this to ensure the new country did not fall apart. After two unsuccessful attempts at a national banking system, the Federal Reserve System was created by the Federal Reserve Act of 1913. Since its inception, the Federal Reserve System has evolved into a central banking system that grows with the country. The Federal Reserve System provides this country with a central bank that is able to pursue consistent monetary policies. My goal in this paper is to help the reader to understand why the Federal

This necessitated the need for development of regulatory measures for the industry. Bank regulation is a legal structure by which all financial

The Federal Reserve System was created by Congress in 1913 and passed the Federal Reserve Act in order to provide for a safer and more flexible banking and monetary system. According to the changing needs of the system, its objectives have been changing throughout the history of the Fed. At first, “its original purposes were to give the country an elastic currency, provide facilities for discounting commercial credits, and improve the supervision of the banking system under a decentralized bank.” (The Federal Reserve System, 1984, 1). Prior to its establishment (the Fed), the supply of bank credit and money was inelastic, thus resulting in an irregular flow of credit and money, and contributed to unstable economic development. These objectives were aspects economic policies and national monetary. However, through time, stability and growth of the economy, high employment levels, stability in the purchasing power of the dollar, and reasonable balance in transactions with foreign currencies have become to be recognized as primary objectives of the governmental economic policy.

Before the advent of the Federal Deposit Insurance Corporation (FDIC) in 1933 and the general conception of government safety nets, the United States banking industry was quite different than it is today. Depositors assumed substantial default risk and even the slightest changes in consumer confidence could result in complete turmoil within the banking world. In addition, bank managers had almost complete discretion over operations. However, today the financial system is among the most heavily government- regulated sectors of the U.S. economy. This drastic change in public policy resulted directly from the industry’s numerous pre-regulatory failures and major disruptions that produced severe economic and social

deposit to satisfy the Minimum Balance Requirement. Once the savings is opened and funded, the

To maintain stability of the financial system and contain universal threats of the financial markets

The Commonwealth Bank was created in 1911 under the Commonwealth Bank Act. It was empowered to conduct both savings and general banking business supported by a Federal government guarantee. The Commonwealth Bank became the first bank involved in both trading and savings bank activities (Peat Marwick 1985:2). The Commonwealth Bank did not specifically have a central banking remit and it was not responsible for note issue, instead it was established as a vehicle to provide competition for commercial banks and to keep accounts of the Commonwealth government.

The Commonwealth Bank of Australia (CBA) supports sector with their following industries such as banking, financial and investment service. Founded in1911 as a government bank, received the first guarantees of the federal government. The first bank branch was opened in Meloburne-July 1912. In 1913 there were already