Capital Markets Case Report 9 2 Final.doc FIN 620 Capital Markets Case Report Souther

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Capital Markets Case Report 9 2 Final.doc FIN 620 Capital Markets Case Report Southern New Hampshire University FIN 620 Capital Markets Case Report In this capital market case report, you will... understand how the Federal Reserve System sets policies that facilitate economic and financial activities to achieve maximum employment, stable prices, and moderate long-term interest rates. Companies must review and assess the impact of the Federal Reserve policies on their long-term financial planning. Companies must understand and incorporate these policies into their financial strategic planning for a company to be successful. Federal Reserve On December 23, 1913, President Woodrow Wilson signed the Federal Reserve Act into law. The purpose of the Federal Reserve was to stabilize the United States economy. Before the Federal Reserve, the United States economy had frequent bank failures and poor credit. "Unlike the banking system today, banks in the colonies did not take deposits or make loans. Instead, they issued paper currency (commodity money) backed by land or precious metals such as gold. The primary sources of credit or loans came through wealthy merchants and other individuals" (Federal Reserve Bank of San Francisco, 2012). Role and Functions Today's Federal Reserve is still partly responsible for stabilizing the United States economy. The Federal Reserve handles the United States monetary policies, regulates the banking industries, and provides financial services to the U.S. government. The Federal Open M. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. .. . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [Show More]

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