MGMT 1 Lecture Notes - Lecture 16: Reserve Requirement, International Monetary Fund, Disability Insurance
Document Summary
The european central bank (ecb) and other central banks have responsibilities similar to the federal reserve. Currencies are traded and exchange rates float. A strong dollar helps imports but hurts exports. A weak dollar helps exports but hurts imports. Exchange rates are determined by the perceived strength of different economies. The federal reserve is a private organization. The board is appointed by the president and confirmed by the senate. But it is not part of the government. Long-standing opposition to a central bank in the us. Bank failures in 1907 led to the federal reserve act and the establishment of the. Was meant to be the banker"s bank. Member banks can borrow money from the fed (lender of last resort) Separate commercial banks from the federal bank. Reserve requirement: percentage of deposits that a bank has to keep in its vault (or deposit at a federal reserve district bank) Open-market operations: buying and selling of government securities.
