Money & Capital Markets FINC310

Money & Capital Markets FINC310

Part I

Deliverable Length: 900–1,200 words Plus reference page

How do the monetary policies of central banks around the world influence you on a micro  level? How do the decisions made by central banks around the world influence a nation’s economic goals of achieving full employment, controlling inflation, sustaining adequate growth, and achieving a stable balance-of-payments position? Explore the current monetary policies of the Federal Reserve and one other key central bank in the world, and discuss their effect on national economic goals, money supplies, and capital markets.

• Explain how and why central banks around the world have set current monetary policy and their effects on you.

• Describe how current monetary policies of central banks around the world may conflict with one another.

• Describe the role of the Federal Open Market Committee of the Federal Reserve in the United States, and describe the tools available to the Federal Reserve to influence the nation’s money supply.

• Describe the Federal Reserve’s open-market operations, and the importance of its role. How does another key central bank around the world conduct such operations, and why are they important? What recent open-market operations have the Federal Reserve and another country’s central bank taken?

• Describe the current structure and composition of the Federal Reserve System and another central bank around the world.

• Explain what happens to the U.S. money supply when the Federal Reserve buys and sells Treasury bonds. Describe in detail how this has affected U.S. banks’ abilities to lend and the overall U.S. economy.

• Explain what has happens to the U.S. money supply and economy when another central bank outside the United States has bought and sold U.S. Treasury bonds.

• What effect have recent actions of the Federal Reserve and another central bank around the world had on the treasury department of the U.S. and the other country’s abilities to raise funds within the global financial system?

• Describe the ways the Federal Reserve and 1 international central bank faced ethical forces that have reshaped financial institutes, financial markets, and the global financial system.

  Part II 

  Deliverable Length: 900–1,200 words

  Taking into account feedback from your peers and your instructor, explain how the monetary policies of central banks around the world influence you as well as a nation’s economic goals of achieving full employment, controlling inflation, sustaining adequate growth, and achieving a stable balance-of-payments position. Explore the current monetary policies of the Federal Reserve and one other key central bank in the world, and discuss their effect on national economic goals, money supplies, and capital markets.

• Explain how and why central banks around the world have set current monetary policy and their effects on you.

• Describe how current monetary policies of central banks may conflict with one another.

• Define the Federal Open Market Committee of the Federal Reserve in the United States and what it does, and describe the tools available to the Fed to influence the nation’s money supply. What area(s) of another central bank performs similar or the same functions and what tools are available to it to influence its nation’s money supply? Which of these tools have dominated recent actions by the Fed and another central bank?

• Define the Federal Reserve’s open-market operations, and explain why they are important. How does another key central bank conduct such operations and why are they important? What recent open market operations has the Fed and another central bank taken?

• Describe the current structure of the Federal Reserve System and another central bank.

• Explain what has happened to the U.S. money supply recently when the Federal Reserve bought and sold Treasury bonds and describe in detail how this has affected U.S. banks’ abilities to loan and the U.S. economy.

• Explain what has happened to the U.S. money supply and economy recently when another central bank outside the United States has bought and sold U.S. Treasury bonds and describe in detail how this affected U.S. and foreign banks’ abilities to loan and the economy of the U.S. and the foreign country in which this central banks resides?

• What effect have recent actions of the Federal Reserve and another central bank had on the treasury departments of the U.S. and that country’s abilities to raise funds within the global financial system?

• In what way have the Federal Reserve and another central bank been part of recent ethical, economic, demographic, social and technological forces that have reshaped financial institutions, financial markets, and the global financial system?

  Key outline for this week and next week

  Part 1 (900 – 1,200 words)

  A. Monetary Policies of central banks effects on me.

     a. Discuss how inflation changes the wages and increases prices

  B. Current monetary policies conflict with each other countries

      a. Discuss China monetary policy is different than the U.S.

      b. Discuss why currency values is so different

  C. The role of the Federal Open Market Committee of the Federal Reserve in U.S.

     a. Discuss the selling and buying of bonds on the open market

  D. The importance of the Federal Reserve in the open market

     a. Discuss the regulations set by the Federal government in the open market

  E. The current world structure of the central banks

     a. Discuss how other central banks control the supply of money and inflation

  F. The buying and selling of the treasury bonds and the affect in on the money supply

     a. Discuss interest rate and they effect on inflation

  G. Other countries central banks effect on money supply when they buy U.S. treasury bonds

      a. Discuss the reaction of other country when inflation and deflation happens in the U.S.

  H. Global reactions to the world central banks had on U.S. Treasury Department

     a. Discuss how European countries affect the classification of the U.S. by buying U.S. bonds

  I. The ethical forces that changed the financial institutions

      a. Discuss 
   

  Part 2 (900 – 1,200 words)

  A. The world monetary policies effect on me

     a. Discuss the global economy and the affects it has on my life

  B. Current monetary policy conflicting with one another

     a. Discuss times of war and the damage it does to the economy

  C. Federal Open Market Committee of the Federal Reserve in the U.S.

   
      a. The tools available to the fed for changing the money supply

      b. Find similar tools that change the money supply

      c. Which tool needs changing in the fed

  D. The Federal Reserve open market operation importance

     a. How other central banks operate

     b. What has the fed done in the open market lately

  E. The current world structure of the central banks

      a. Discuss how many central banks are in the world structure of banking

  F. The buying and selling of the treasury bonds and the affect in on the money supply

     a. How does buying and selling these bonds affect foreign banks

  G. Recent fund raising in the global financial system

     a. Discuss the abilities to raise money within the global financial system

  H. The ethical changes of economic, demographic, social, and technological in the global financial system

      a. Discuss the laws and regulations made to improve the quality of banking to everyone

• Final 4 and 5.docx