Banks and banking system in the U.S.A
Coursework
Outline
1. Banks. Credit and financial system
2. Central bank. Its functions and role in the state;commercial bank.
-Banking operations and profits. Receiving profits - the objective of banking activities;banking operations;banking risks and their types.
3. The Federal Reserve System of the U.S.A
4. Resolution. Banks in the modern world
5. Works Cited
Banks. Credit and financial system.
Banks are the main integral part of the financial system any of any country. They create, accumulate and provide cash. Credit systems of the developed countries are of a different structure, but there are also common features. So universally credit system consists of the central bank, commercial banks and specialized financial institutions (investment, foreign trade, mortgage, etc. ), as well as credit and financial institutions of the non-banking type: insurance, financial companies, pension funds and savings banks.Central banks compose the leadership of the whole country’s credit system, they are dedicated to regulate credit and currency circularization, to monitor and stabilize the exchange rate of the national currency, to smooth fluctuations with the help of their influence during business activities, prices and employment, stimulate growth of national economy on a healthy financial basis. The central bank acts as an agent of the government. In this case, he advises the Government on management issues of the national debt, currency and monetary policy issues as well. In addition, the central bank is the government representative regarding financial transactions. The main function of the bank is to develop and conduct the monetary policy. This is the most important function.
As the government agent of the fiscal affairs, the central bank gives recommendations, controls some deposit accounts and the government funds, on behalf of the government releases and calls in the money, manages the national foreign exchange outflows and speaks on behalf of the government in the international currency market, and appears to be the depository of gold administering the public debt (releasing government bonds, pays interest on them and extinguish them).The central bank helps the government to determine the best time for bonds issuance, their price, profitability, and other characteristics that provide attractive conditions for investors, the place, where is the best place to place bonds. To successfully cope with this task, the bank must have accurate and timely information on the state of the economy, driving credit resources, and etc.. Despite the efforts to be extremely informed, the bank is sometimes compelled to take actions before the statistics proves the expected event. Therefore, the bank is conducting its own research, whose results of are normally published and are of great interest to the scientists, economists, managers and financial institutions.The central bank manages government deposits (even if they are kept in commercial banks). Almost all government expenditures and revenues go through the central bank accounts. Balances of deposits and current accounts, bearing interests, are held in the commercial banks accounts. The central bank also has an account for depositing government revenue in …
