ates the holding of Eurodollar deposits-dollar deposits in banking offices outside the United States-by nonbank US entities. Similarly, Eurodollar loans-dollar loans from banking offices outside the United States-can be an important source of credit for US companies (banks and non-banks). Because they are close substitutes for deposits at domestic banks, Eurodollar deposits of nonbank US entities at foreign branches of US banks are included in the US monetary aggregate.
Conclusion
Federal Reserve makes its own contribution to the nation of economic and financial goals, working on finance and credit in the economy. As the country s central bank, it provides long-term economic growth within its capacity, while ensuring reasonable price stability. In a nutshell, the Fed seeks to implement its policies so as to combat the deflationary and inflationary pressures as they arise. And as a lender of last resort in a crisis situation, it is responsible for using the tools of their policies in order to prevent a national crisis of liquidity and financial panic.Reserve System has been entrusted to many monitoring and regulatory functions. For example, it is liable for the amount of credit used for the purchase or sale of securities, regulate overseas activities of all US banks and foreign banks. Monitors compliance with laws governing bank holding companies, controls the banks, registered at the state and are members of the Fed, sets rules to protect consumers 'interests.the federal government, the Federal Reserve System was designed to be a compromise between national and regional powers. Its regional base-the 12 Reserve Banks-makes the System more flexible and innovative and ensures that its decisions and actions are broadly based. The Board of Governors, acting as general overseer of the Reserve Banks, helps coordinate the System's operations. And the System's most important function-formulating and implementing monetary policy-is carried out in light of both regional and national concerns by the FOMC, the Reserve Banks, and the Board of Governors.Federal Reserve's major functions account for its structure and for its unique position in the federal government. Accountable to the government but working independently within it, the System is able to pursue its monetary policy goals without undue pressures from short-term political considerations. Since its founding in 1913, the Federal Reserve System has evolved to meet the needs of a changing financial system and a growing economy. Its unique structure, however, remains its most outstanding feature and its greatest strength.
List of Literature
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