TAILIEUCHUNG - Lecture Financial institutions, markets, and money (9th Edition): Chapter 3 (revised) - Kidwell, Blackwell, Whidbee, Peterson

Chapter 3 - The fed and interest rates. This chapter presents the following content: Federal reserve control of the money supply, the fed's influence on interest rates, the treasury department and fiscal policy, goals of monetary policy, the fed and the economy, complications of monetary policy, anatomy of a financial crisis. | Power Point Slides for: Financial Institutions, Markets, and Money, 9th Edition Authors: Kidwell, Blackwell, Whidbee & Peterson Prepared by: Babu G. Baradwaj, Towson University And Lanny R. Martindale, Texas A&M University CHAPTER 3 THE FED AND INTEREST RATES The monetary base comprises the Fed’s 2 largest liabilities: Federal Reserve Notes in circulation Depository institution reserves (reserve account balances and vault cash) The money supply involves the Monetary Aggregates The Fed controls the monetary base . To meet reserve requirements, depository institutions must transact with Fed in monetary base assets. They either - deposit adequate reserves at FRB or maintain adequate cash in vault Either way, reserves - required or excess - earn no interest. The more cash or reserves an institution holds above its requirements with the Fed, the more it wants to make new loans or investments to avoid lost interest income. Thus the Fed controls the money supply . Excess .

• Tài chính doanh nghiệp
• Financial system
• Financial markets
• Commercial banking
• Financial institutions
• Fed controls
• Money supply
• Lecture Accounting and financial system
• Financial statements
• Interpretation of financial statements
• Financial records
• Government grants
• Financial inclusion and growth of Indian banking system
• Financial inclusion of Indian banking system
• Growth of Indian banking system
• Challenges for financial inclusion
• Financial inclusion plays
• The financial system
• The payments system
• Interest rates
• Rates of return
• The stock market
• Financial market efficiency
• Determining interest rates
• Financial Instruments
• Modern financial system
• Flow of funds
• Financial claims
• Modern financial system
• Impact of globalisation
• Functions of the financial system