The Philippine Financial System

The congress decided to pursue the idea of limiting the power of government through check and balances. This system is written in our Constitution. The ideal principles of making laws, enforcing and interpreting laws should be independent and efficient in limiting each other’s power. The two houses of congress provide limitations on each other.

The Federal Reserve System is the most powerful institution in the United States economy. Functioning as the central bank of the United States, acting as a regulator, the lender of last resort, and setting the nation’s monetary policy via the Federal Open Market Committee, there is no segment of the American economy unaffected by the Federal Reserve [endnoteRef:1]. This power becomes even more substantial in times of “unusual and exigent circumstances,” as Section 13(3) of the Federal Reserve Act gives authority to the Board of Governors to act unilaterally in lending and market making operations during financial crisis[endnoteRef:2]. As illustrated by their decision making in the aftermath of the 2007-2008 Great Recession,

Describe the creation of the Federal Reserve System and its role as agent and bank regulator;

Prior to the institution of the Federal Reserve Act, the U.S. financial system’s basic structure was determined by the National Banking Acts of 1863, 1864, and 1865 (Broz, 1999). The purpose of the legislation was to provide a uniform national currency and to raise revenue for the federal government during wartime (Broz, 1999). While effective in its main purposes, it was flawed in the fact that the increase of available currency had little to no effect on consumer demand which led to large seasonal swings in interest rates and banking panics (Friedman & Schwartz, 168-169). In an attempt to rectify the shortcomings of the National Banking System, government turned to the New York Clearinghouse Association, purportedly known as the first central bank. Originally responsible for the settlement of payments between financial institutions, it was chosen because it was the only source at the time that had the ability to provide funds during high demand periods through a discount window or an open market operation (Broz, 1999). In the end, it failed to maintain an adequate amount of liquid reserves to counteract the monetary crisis‘s that ensued during the agricultural harvest cycles, when currency demands accelerated.

You have used money to measure the price, the size of business, total output in the economy, and income. Coins and paper money are called currency. People use currency daily. When you go to a movie, you probably buy a ticket with currency. Coins and paper money work well for small purchases and when payment is made directly from one person to another. But, for large purchases or when payments travels to mail, currency is not practical. A check is a written order to pay money from amounts deposited. Therefore, deposits in checking accounts, credit union share draft accounts, and other similar accounts are considered money. Remember that the most important function of money is as a

The article by Justin Wolfers describes how the Federal Reserve System (Fed), also known as the central bank of the United States, can alter monetary policy to help the economy recover during downtimes and recessions. Although the Federal Reserve System is not technically a political institution, such as that of the Bank of Canada, after it was nationalized in 1938, with its overall responsibilities lying with a board of directors. In other words, the Fed does not stack the deck to assist either the Democrats or Republicans; their decisions can still be influenced by congress and presidential elections due to the fact that a lot of the principles in money and banking are political. For example, changes in fiscal policy can also help an economy recover, which is defined as policy that involves decisions about government spending and taxation. Additionally, if the Fed were to turn to unconventional measures leading up to an election, political outrage, especially from Congress, would be likely. Therefore, these policy-makers at the Federal Reserve System are often left inadequately prepared to respond to an economic downturn or recession.

The Federal Reserve is the main banking system in the United States. It has 12 regional banks around the nation, its headquarters being located in Washington DC. The Federal Reserve (better known as the Fed) was established in 1913 by Congress in order to “provide the nation with a safer, more flexible, and more stable monetary and financial system” (federalreserve.gov). Although the Fed was created over a century ago, it is still a major influence in the banking systems today.

Question 8. The Fed is the most independent of all U.S. government agencies. What is the main difference between it and other government agencies that explains the Fed’s greater independence?

The Federal Reserve Bank (FSB) is a regional bank for the central banking system of the United States. The regional banks enforce the monetary policies that affect the banks in their region.

The Federal Reserve has the authorization to ensure sufficient money as well as credit in the banking system that is needed to assist in a rapid growing economy (McEachern, 2015, p. 213). However, the Federal Reserve has the authority to sell and buy all government securities to clear any checks that are in the banking system, to expand loans to member banks, and to require that all member banks embrace reserve that are equivalent to at least some specified fraction of their deposits (McEachern, 2015, p. 213). Nevertheless, the two mandates of the Federal Reserve System are maximum employment and price stability (McEachern, 2015, p. 215).Maximum employment is ensuring that jobs are easier to find; therefore, allowing people to have money

Anderson (2002) while highlighting the characteristics of MFIs, noted that the traditional sources of finance of MSBs are from family and friends and the informal market which consists of rotating savings and credit associations (ROSCA), various “club” system pooling members’ savings for loans, village banks, buyers’ advances (both in cash and in kind) and money lenders. He however noted that they may have some access to semi-formal microfinance institutions (legally organised financial intermediaries that are not regulated by monetary authorities) such as non-profit NGOs, large village banks, suppliers who provide credit and money brokers.

1(a) Financial System is a complex yet connected system that consist of financial intermediaries, financial institutions and financial assets.

The main concept of the article is to explain why the New International Financial Architecture (NIFA) was created and who is being benefited from this approach. The discussion begins with an examination of the power structures of the global political economy by focusing on the continued dominance of the USA. The article presents the contradictory relations between USA and global finance will be explored so as to shed more critical light on the NIFA. This article critically examines the NIFA by linking its institutional components to the larger contradictions of the capitalist inter-state system. A contradiction is the constant promotion of financial liberalization in emerging

Financial systems and financial regulators are entities setup by the government of a country to ensure the availability and flow of financial resources in a fair and lawful manner without exploitation or monopolization of the resource by individuals or organizations. The task of ensuring the availability of finance and its transference is taken up by the financial systems of a country while the task of monitoring and regulating is taken up by the financial regulator.

Singapore Financial System is one of the world’s largest financial systems. According to Mishkin (2009), Financial System refers to a system that consists of the markets and institutional units that interact for the purpose to provide facilities such as payment and transfer systems and organizing the funds for investment from saved surplus funds to units who have shortage