Dr. Econ

This answer illustrates some ways in which the U.S. banking system is similar (providing banking and financial services) to the banking systems in other industrialized countries and other ways (banking regulation, structure of the industry, powers of banks to engage in securities and insurance activities) in which it differs from them.

Both monetary and fiscal policy may be used to influence the performance of the economy in the short run.

Why Americans are in the aggregate saving far less (or consuming much more) as a percentage of disposable personal income than they did overmost of the past 40 years.

Discussion of the Fed’s monetary policy to counteract the slowing economy by lowering interest rates in the federal funds market and at the discount window. The 2001 decisions resulted in the lowest federal funds rate since 1961 and the lowest discount rate since 1948.

Discusses the role of the Federal Reserve as a generator of economicinformation for use by government agencies, businesses, academics,and the public through statistics and surveys, as well as various other Fed publications.

Discusses how reserve requirements held as vault cash or deposits at regional Federal Reserve banks aid in the conduct of open market operations.

Reference to an article that provides a thorough analysis of the Federal Reserve’s response to the attacks, the economic outlook over the short-run,and the longer-term prospects for the economy.

Discusses the capital requirements set by the 1988 Capital Accord that are met through two capital tiers in order to enhance the safety and soundness of capital in the international banking system.

Explanation of how reserve requirement ratio changes affect the money stock.

Discusses the role of banks as key components of the financial system and how bank assets and liabilities help channel funds from savers toborrowers in a more efficient manner.