Central Bank Term Papers Samples For Students

U.S. Banking System 1791-1836
The First Bank of the United States was created in February 1791. The U.S. Congress chartered this bank for a period of twenty years to serve as a fiscal agent for the U.S. Treasury. The semi-private, semi-public national bank was a significant factor in the building of the U.S. economy in this period. This bank performed the first central bank functions for the U.S. government and ran from 1791 to 1811, when the U.S. Congress failed to renew its charter. This bank was important because the U.S. government had accumulated a debt to finance the Revolutionary War, and ...

INTRODUCTION

The Federal Reserve System also known as the Federal Reserve was formed on December 23rd 1913 after the approval of Federal Reserve act (Beckhart, 2). The enactment of the act was accelerated by a series of financial panics, mainly by a severe panic in 1907(Bechart,2).It’s main objective was; to provide economic stability by formulating and implementing monetary policies that will ensure price stability, to facilitate discounting of commercial papers and lastly to regulate the activities of commercial banks (Prochnow,3).
However the goal of the Federal Reserve has changed overtime and broadened to accommodate other economic ...

Economics of Global Money Markets

When money became a commodity, money market became part of the financial markets for the reasons that assets that are involved in short-term buying, borrowing, selling and lending with the original maturities of about one year or less. The trade in money markets is carried out over the counter and as such it is wholesale. There are various instruments that exist and they include deposits, treasury bills, bankers’ acceptances, certificates of deposit, bills of exchange, commercial paper, federal funds, repurchase agreements and asset backed securities. This provides a funding that is liquid for the global financial system. Capital markets and money ...

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Introduction
US has been the center of the global economy for the past several decades, and hence decisions taken by the U.S government can have significant impact on the rest of the world. In the same manner, the monetary policies formed by the Federal Reserve (FED) – the central bank of the United States –influence the economic policies of other countries worldwide. Therefore, central banks worldwide are closely monitoring the moves of the FED so as to make timely adjustments to their economic and monetary policies. The U.S economy was severely hit by the global financial ...

The US Subprime mortgage crisis was a banking and financial emergency situation that led to a recession not only in the US but spread to many parts of the world. The disastrous effects of a crisis in the domestic subprime market on the rest of the world beg questions about the interconnectability and interdependence of the international economy as well as the financial institutions. The international financial crisis also revealed how vulnerable the global financial system was. Not only did the subprime crisis have a direct effect on global markets and countries that held a huge number of US mortgage backed securities and were ...

Introduction

This paper summarizes the key policies that were implemented by the United States Federal Reserve Bank in the period between 2008 and 2010. This time period under review presented a unique economic environment for the Federal Reserve and the US economy as a whole, due to the Global Financial Crisis which begun in the second half of 2008. This paper seeks to understand the key decisions that the Fed took in averting the deepening of the crises, and in steering the economy back on the right course. By and large, the decisions taken by the bank are to a large extent a reflection ...

Short – Term Investing

Introduction
A treasury bill or a T-Bill is a short-term maturing promissory note, usually lasting for three months to one year. Nyawata (2012) asserts that the federal or national governments are the ones that issue T-Bills as their primary instruments of regulating the supply of money within the national economy, as well as raising funds for various government projects through open market operations. The central banks of the respective countries are the ones responsible for issuing and paying on T-Bills. According to Thau (2000) T-bills do not have any form of explicit interest, but they sell at a discount ...

Inflation in USA

Inflation in US
Introduction
Inflation refers to the rate at which the country is experiencing the general increase in prices of goods and services. When the rate of inflation is high, the purchasing power of the country’s currency will be low at the same time. This will comparably imply that higher amount of money is needed to purchase items that had been previously purchased at lower amounts of the same currency. The country’s currency would have lost the real value as a unit of account and as a medium of exchange of the economy. The chief measure ...

Question 1: To what extent is government intervention in the international trade of goods and services between two countries necessary to yield economic welfare? Discuss in the context of any one market with which you are familiar.
Since the turn of the century, the developing countries are struggling hard to establish their foothold in the world. These developing nations were once corridors of trade to the Central Asian Market but now they are being swiped off their feet due to the overwhelming response of the capitalist world. It is becoming hard for them to keep pace with the ...

Third Round of Quantitative Easing (QE3)

QE3 or the third round of quantitative easing is a central bank (i.e., Federal Reserve) open-ended bond-buying policy directed towards lowering the interest rates and mortgage rates to stimulate demand in the economy. The QE3 in the US that started on September of this year involves buying of mortgage-backed securities (MBS) worth $40 billion every month. This is done by injecting a pre-determined quantity of newly created money in the economy through the purchase of debts (bonds) from banks.
The graph shows what’s happening in the bonds market with the QE3 policy of the Central Bank. As the government ...

The housing sector in the United States of America is undergoing one of the most difficult times in the American history. The situation has become a real problem to the nation, to an extent that it has been classified as a major economic bubble1. The real cause and the direction of the situation is one of the major economic hurdles facing the United States of American today. It has affected many parts of the United States since it started occurring in 2007, while other parts are feeling the effects2. The situation has led to a decline in the number of potential buyers ...

Introduction

The exchange rate has become an integral component of modern economics. Its role stems from its far-reaching effects on the economy of a country, investments, the profitability of firms, and personal finances. Countries have become even more interdependent due to the rapid advancement in communication technologies and the expansion of global trade, which have significantly reduced the geographical distance between both individuals and countries. However, since nations use a broad range of domestic currencies with different values, trading partners must, therefore, rely on currency conversion methods to facilitate global transactions. This paper explores the importance of exchange rate and ...

Shadow banking, as an economic phenomenon of recent years, should be viewed primarily in the context of changing economic conditions. Today, a new global macro position is a post-crisis pause of rapid growth of the world economy, the consequence of which is fixed to the long time the situation of general uncertainty in the economy. In the context of the changing global macroeconomic conditions, the problem of shadow banking and its regulation is relevant. The topic deserves close attention from the perspective of scientific and practical understanding of this phenomenon. Shadow banking is a financial market segment, operating outside ...

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1. Background
For many decades since its independence in 1923, Turkey was a largely agrarian economy, with the majority of its people living in rural areas. Yüksel Görmez and
Serkan Yiğit note in The Economic and Financial Stability in Turkey: A Historical Perspective that “77% of the population, about 13 million people, were living in rural areas and largely dependent on agriculture” (3). Agriculture itself depended on good weather conditions. This paper seeks to assess the reasons for the ...

Business Opportunity Analysis: Chocolate Import

Exchange rate
Sales volume
Import duty and related costs
Initial Investment
Depreciation
Working capital requirements
Discount rate
Seasonal sales fluctuations
III. Analysis of the business opportunity.
IV. Alternative solution.
V. Conclusion.
VI. Exhibits.

Executive summary.

A business proposition to import and sell Belgian chocolates in the United States has been offered for analysis. The basic assumptions for this venue are an up-front lump-sum payment for exclusive right in the US for five years and the 35 percent discount on the buy-in price in Belgium. The existing market research shows a 1 500 kg of gourmet chocolates per month market capacity.
Taking ...

A Comprehensive overview

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Financial Crisis

Introduction
It’s of imperative importance to understand the link between financial system and the economy. According to various economists, it is gauged that there are two primary function of finance. As mentioned in The Economist, it essentially performs as an economic time machine, serving savers to haulage their present surplus income into the future, and on the other hand offering borrowers access to future earnings now. Finance also serves as a safety net, protecting against catastrophic unforeseen events. Hence, by performing these two acts, an efficiently running financial system ensures against the bumps in life, providing ...

Introduction

There are two kinds of tools available to the economic policy-makers through which they tend to influence the economy of the country; these two tools are fiscal and monetary. The former policy related to the spending of the government and the collection of revenue like altering the disposable income of the people by lowering taxes or increasing the spending so that demand is stimulated. The latter which is the monetary policy is associated with the supply of money and is influenced by such factors like the rate of interest and the reserve requirements for the banks. Usually these policies ...

International business is the multi-lateral trade between different countries across the globe. International trade has various positive and negative effects to the participating countries. For example, in the recent past, the world has been rocked by various financial crises originating from different parts of the world. One of the major financial crises that greatly affected the world of commerce is the Greece debt crisis. In addition, there are other two financial crises that have caused negative impacts in both Europe and America. These crises are Spain and Portugal debt crisis (Duthel, 2011). It is evident that management of debt ...

Abstract

Since 2007, the European markets continued to experience a decline as several European nations had felt the consequences of applying the unstable Euro into their countries that had influenced the nation’s economic instability as seen in the case of Greece, Ireland, Italy, Spain, and Portugal. In recent news, the European debt crisis continues to prevail as the Eurozone reaches its all-time low for the past5 years as both strong and weak European markets now enter a state of recession that affects the entire world market. With the current European Debt Crisis continuing to influence the European markets, the United States may ...

Banking industry in Malaysia

The Malaysian banking industry can be traced back to the early 1900s during a period of rapid economic development mainly due to the increasing profits accrued from the rubber plantations and the tin industry. This resulted to the opening of branches of foreign banks in the country and the establishment of the first domestic bank in the country, Kwong Yik Banking Corporation during 1913, which is presently the Malaysian Banking Berhad (Alexander, 2007). This set the pace for the growth of the industry and its subsequent expansion to include the setting up of Bank Negara Malaysia, which is the country’ ...

The gold standard is a monetary system which suggests pegging of economic unit of account with fixed mass of gold. For understanding the meaning of the gold standard a little digression in history is needed.

The United States switched to the gold standard in 1834 because of silver currency and bank notes crisis. The price for gold in the United States was set at $20.67 per ounce that year. The majority of the countries adhered to gold in the period called Classical Gold Standard from 1880 to 1914. This was the period of unprecedented economic growth and free trade in the ...