In a discussion around Central Banking, address the following issues: The Fed is

ID: 1223384 • Letter: I

Question

In a discussion around Central Banking, address the following issues:

The Fed is the central bank for the United States; other countries have their own central bank. Identify at least 3 of the World’s Central Banks. Investigate each – what is the level of money currently in the money supply of that country?

Pick one of the 3 Central banks you identified in bullet #1 above. Go to the website for that Central bank. What types of information regarding their operations, organizational structure, and the performance of their national economies can you find on that Central bank’s website? What types of information do you believe a central bank’s Web site should make available to the public? Why?

Through discussion and example, provide a detailed discussion of the Federal Reserve’s structure and how they are organized today.

Discuss the tools at the Federal Reserve’s disposal relative to managing inflation. If the Fed Chief wanted to reduce inflation what specific actions do you think the fed chief would do and why?

Explanation / Answer

World’s central banks

Country

Central bank

India

Reserve bank of India (RBI)

England

Bank of England

China

People’s bank of China

RBI: Level of overall money supply per cent is 6 to 6.70

Bank of England: M4 level of money currently is in the money supply of that country. This level includes Notes and coins, Certificates of deposit, bonds, claims, and bank bills.

People’s bank of China: The level of money supply in the country depends on the policy of bank reserve ratio and market interest rates. If these are high money supply would be low, or vice versa.