The Functions of Saudi Arabian Monetary Agency

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.

Secondly, out of the twenty-five stockholders of the Bank, five of these were government owned. Thus showing support of the Bank by subscribing to one-fifth of its $35 million (Schlesinger 74). In addition, among the Bank’s functions was to hold all government money, sell all government bonds, and make commercial loans. However, no voters could dictate its policies or reign in its power, due to its privately owned status (Roughshod 2). Finally, the government also allowed bank notes to be used as payment for taxes.

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

After the Civil War started, another need for a national bank emerged. The government wanted to learn from the mistakes of the first and second banks, so they developed the National Bank in 1869, which was modeled after the free banking system. This system allowed banks to choose between state and national charters. Though the bank was transformed into another bank in 1913, this was the United States first success at a uniform currency. Finally in 1913, the Federal Reserve was established. The architects of the federal reserve learned from the mistakes from the previous banks so that they could make this bank a success. This new federal reserve bank was given control over the nation’s payment system. The federal reserve was broken up into 12 District Banks that operated independently, so that there was not a concentration of power. Though not the original role of the Federal Reserve, today it is best known for the monetary policy. Today the federal reserve is run by the Board of Governors,which are seven members that are appointed by the President and are approved by the Senate. The Federal Reserve is composed of the Board of Governors, and twelve district

That is to say, the Federal Reserve's job is to maintain an accurate banking structure and a healthy economy. To fulfill its mission, the Federal Reserve presents itself as the financial institutions bank, the ministry's treasury, the director of monetary organizations and the nation's currency

*Quotes from The Lord of the Rings, or The Hobbit by JRR Tolkien. Nothing written in italics applies to the

The Federal Reserve System is the simply-said national bank of the United States. It is responsible for five general capacities to advance the compelling process of the U.S. economy and for the most part, the general population intrigue. The Federal Reserve

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.

Many countries has their own central bank, such as England established their central bank in 1694, japan established bank of Japan in 1882. The function of central bank is supervising and regulating the bank system. And central bank is also controlling the money supply for their nation. It can issue banknotes, serve as a bank for financial institutions and government, maintain the value of the currency, supervise banking institutions, establish and conduct monetary policy. United Stated established the Federal Reserve till 1913. It was a big step for the nation. That’s means, all national bank were become members of the Fed. And the story of Fed has been started in that year. It play an important roles in several times financial crisis. As one of the branches of Dallas districts, Houston Federal Reserve has their own responsibility for helping the economic. The challenge of Houston branch is coordinate the different ideas between regional and national. And the different target and benefit conflict between the government and private banking. Houston branch need report their information that

The Federal Reserve was established as the Central bank of the United States in late 1913. Commonly referred to as “the Fed,” it is responsible for managing currency, money supply, and interest rates (Lecture, 10/6). While the bank is given much autonomy over its actions, it is not independent from the US government in that the legislature is responsible for allowing the Federal Reserve to act freely, and elected officials appoint central bankers. These are two primary mechanisms for keeping the Fed in check, insuring that it is acting in the nation’s best interest (O, 286). Countries with central banks that are independent from their governments tend

The Bank of Canada is a central bank and not a commercial bank. In other words it does not deal with the general public or business transactions. The Band of Canada deals with the Canadian government and some Canadian, Foreign central banks and international financial institutions. The Bank of Canada’s role in the economic life of Canada and its citizens is to keep inflations low and stable and is aimed at keeping the inflation predictable by incorporating monetary policies that influence the level of interest

The Federal 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

The so-called Federal Reserve System (Fed) is a central banking system; unlike the banking system from other countries, the Fed build much later. In the American history, the origin organization that function as central banking is the the first bank of the United State (1791-1811) and the Second Bank of the United State (1817-1836). The United State government historically intended to build some central banking system like The Fed; however, people also worried about the power is going to be over controlled by the central bank; or the central bank itself is controlled by some particular interest groups. Many people worried about the idea of central banking system is due to the ideologies in the United States. The administrative power is excessively

It was established in the year 1974 and officially started operating on 1st April 1975. It is governed by Dr Ali Bin Mohammed Bin Moosa. The main function of central bank is to maintain economic stability in the country and also to maintain the internal and external value of national currency. It is also responsible for providing monetary and financial benefits to commercial banks and financial institutions of the country and also committed to help them in case any economic crisis. The capital base of the Central Bank of Oman was one million Omani Rials at the beginning of operations in the year 1975 and later was strengthened over time and since April 2002 it has remained at 300 million Omani Rials. At the end of 2005, Central banks assets/liabilities totaled up to RO 1826.4

Over the past few years, the global business operating environment has increasingly become challenging. First it was the global financial crisis followed almost immediately by the Europe crisis-which is currently threatening to become a global economic crisis-that presented these challenges. It was argued that economies, such as Jordan which are relatively smaller players in the Global arena would not suffer the adverse effect of the crisis. In fact Jordan and Lebanon were the main Middle East countries expected not to suffer from the adverse effect of the crisis. On the contrary, they were expected to benefit based on the fact they are consuming economies. Large trade deficit that would enable them enjoy cheaper imports as