This preview has intentionally blurred parts. Sign up to view the full document

View Full Document

Unformatted Document Excerpt

Federal Reserve 1 Federal Reserve Paper Ezzy Ihekoronye FIN/366 April 12, 2011 William Rainwater Federal Reserve 2 Federal Reserve Regulations can be defined as rules, procedure and laws set by government agencies in order to achieve its objectives. In the financial industry, it is set by the Federal Reserve and all banks are required to abide by them as well as keeping them all in unison. This helps regulate the practices of all banking and lending institution. The primary purpose of banking regulations is that it protects individual consumers against banking and lending practices that are deceptive and can potentially harm or violate individual privacy rights. The Federal Reserve which sometimes can be referred to Central Bank is one of the countrys most powerful economic institutions. The Federal Reserve is relevant for Congress not only because the Constitution gives monetary powers to congress but also because congress created the Fed and, therefore, has critically important responsibilities for Federal Reserve oversight. The Federal Reserve and monetary policy is very important in the financial markets because it influences interest rates and stabilizes the financial system. The important of the Federal Reserve cannot be overemphasized. The functions are important because the Federal Reserve is responsible for the management of total spending as well as inflation. The Federal Reserve function also influences foreign exchange rates and other market prices. In times of financial crises, the Fed stabilizes the entire financial system. The Federal ... View Full Document

End of Preview

Sign up now to access the rest of the document