Federal Reserve Bank Of New York Essay - 1620 Words

I. Introduction According to Federal Reserve Bank of New York, â€Å"The Balance of Payment† (BOP) is a statement used by a country to summarize an economy’s transactions with the rest of the world by both private and public sectors for a specified time period, usually every quarter or year. It is known as â€Å"Balance of International Payment†, it involves all transactions between a country’s residents and its non-residents involving goods, services and income, financial claims on and liabilities to the rest of the word. If a country has received money, this is known as a â€Å"credit†, and if a country has paid or given money, the transaction is counted as a â€Å"debit†. Theoretically, the BOP should be zero, meaning that assets (credits) and liabilities (debits) should balance; however, in the reality, this is rarely the case. The BOP is divided into 3 main categories: the current account, the capital account, and the financial account (Reem Heakle, 2015). 1. The Current Account The current account refers to the export and import of goods and services into a country. Within the current account are credits and debits on the trade of merchandise, including goods such as raw materials and manufactured goods that are bought, sold or given away in the form of aid. Services refer to receipts from tourism, transportation, engineering, business service fees such as lawyers or management consulting, and royalties from patents and copyrights, and income-generating assets such as stocks. Last butShow MoreRelatedFederal Reserve Bank Of New York924 Words   |  4 Pagesthe education system is not thriving. Three decades ago, America was the leader in the quality of high school diplomas, yet, students in the U.S. rate 31st in math literacy and 23rd in science in comparison to the rest of the world. (Federal Reserve Bank of New York) The country that is famous for being the most advanced and innovative country in the world is yielding a generation t hat is falling behind in the global education race. Public K-12 education is worsening simultaneously with the growingRead MoreThe Federal Reserve Essay695 Words   |  3 Pagesthe early 1900s; he passed the Federal Reserve Act. American citizens have been wary of a government-controlled banking system since the formation of the country. The people did not trust centralized government action, and they were largely agrarian people, knowing little about the banking industry. Still, Alexander Hamilton, the first secretary of the Treasury, was determined to create a national bank. His efforts resulted in the establishment of the First Bank of the United States in 1791, andRead MoreFederal Bank Of Commerce : The Knickerbocker Trust Company1047 Words   |  5 PagesIn the year of 1907, New York City had three types of banks which were; national banks, state banks, and trusts. Trust companies were making more money, successfully seizing large portions of stock from major industries. The Knickerbocker Trust company was ranked the 3rd largest Trust company in New York City. This was a major concern for the National bank, and they perceived the success of the Knickerbocker Trust company as a threat. While riding the waves of success, the Knickerbocker Trust companyRead MoreFinanical Crises of September 11th Essay1531 Words   |  7 Pagesthe economic issues temporarily receded politically. The Federal Reserve had a major challenge on September 11, 2001 as the attacks by terrorist on Washington, Pennsylvania and New York were disruptive on the U.S. financial markets. The Federal Reserve immediately issued a short statement (FRB, 2001) â€Å"The Federal Reserve System is open and operating. The discount window is available to meet liquidity needs.† The results, the Federal Reserve lowered interest rates and loaned more that $45 billion toRead MoreThe Federal Open Market Committee1313 Words   |  6 PagesAbstract The Federal Reserve System has three branches: the Board of Governors, The Federal Open Market Committee, and Reserve Banks. The Federal Reserve System (Fed) supplies and regulates America’s money to all the banks. The Board of Governors is the main authority of the three branches of the Fed, and it supervises other banks. The Federal Open Market Committee is the most prominent policymaker of the three branches and regulates the supply of money in the economy. Federal Reserve Banks serve otherRead MoreThe Federal Reserve System Is The United States Central Bank1339 Words   |  6 PagesHayden Hill Macroeconomics Professor Gislason 27 April 2017 The Federal Reserve System The Federal Reserve System, also called â€Å"the FED†, is the United States central bank, a national institution which governs the production and distribution of money. It was created to provide the United States with a more secure and more stable financial structure. The Federal Reserve System has many responsibilities today. First, the FED controls U.S. monetary policy by altering the supply and demand of the economyRead MoreThe Federal Reserve1187 Words   |  5 PagesJannet Yellen is Chairwoman of the Federal Reserve, and arguably the most influential person in the world. The Federal Reserve is the bank of the United States. The Federal Reserve’s decisions, approved by Jannet Yellen, impact the entire US Economy, the largest and most important economy in the world, almost instantly. The Federal Reserve is quasi-private. It is not apart of the U.S. Government, however, it is not an entirely separate entity. The Federal Reserve was founded in 1913 as a means toRead More The Federal Reserve System Essay1087 Words   |  5 PagesGovernment have always been difficult to figure out especially when it comes to interest rates. Due to our Federal Reserve System, its chairman Alan Greenspan, and his Board of Governors dedicated to seeing that our economy blossoms, those doubts have become a thing of the past, for now. 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 currencyRead MoreThe United States Economy: The Slow Recovery of a Nation711 Words   |  3 PagesRecovery of a Nation Consumer concern over a declining housing market, political gridlock in Washington, high energy and healthcare costs, and budget worries collectively have resulted in an economic meltdown in need of a recovery. After 9/11, central banks around the world cut interest rates so low that investors borrowed disproportionate amounts of money leading to reduced liquidity and a buildup of foreign exchange outside the United States. While at the same time, Americans overindulged in consumptionRead MoreThe Workings And Structure Of The Federal Reserve Banks Of Usa1507 Words   |  7 Pagesfurthermore consists of the Federal Reserve System, foreign banks, commercial banks, offshore banks, credit unions and saving institutions. Financial markets consist of debt and money markets, equities markets and futures and options markets. Lastly, nonbank financial institutions consist of asset-based finance companies, commercial lending companies and insurance companies. This paper is an endeavor to un derstand the workings and structure of the Federal Reserve Banks of USA. Founded by the U.S