Discuss the major participants in the U.S monetary system and the importance and function of money.

Expert Solution

Major participants in the United States monetary system are Central banks along with the commercial banks and Government sponsored enterprises and other mutual funds.

The monetary system will be governed by the central banks of the United States which is the Federal Reserve and they will be formulating the monetary policy in order to control the money flow in the monetary system and Central Bank will be reviewing it at particular interval in order to find out the optimum money supply whereas commercial banks will be required to follow up with the rules and regulation which are laid down by the central banks and they will be trying to establish the adequate monetary flow by adhering to the guidelines which has been set by the central bank so they will be lending in accordance with the central bank interest rates and they will be trying to maintain an appropriate balance in the economy.

Importance of money is that this can be used for multiple purposes in the economy and it can be used for generation of the credit and liquidity and propelling of the growth and prosperity.

Functions of money will be including that it is a medium of exchange along with it is a store of value and unit of measurement.

jeff jeffy answered 2 years ago

3. Discuss the importance of managing the U.S. Treasury’s cash balances in maintaining stable monetary conditions

Identify and discuss the importance of the participants in the organizational buying process.

Discuss the function and importance of the autonomic nervous system Discuss one specific receptor type of...

Discuss the function and importance of the autonomic nervous system Discuss one specific receptor type of the general senses; give location, type, and function Discuss one special sense organ; you must include the area of the brain responsible to process information coming from that sense organ

The Federal Reserve is responsible for regulating the U.S. monetary system and setting monetary policy. Monetary...

The Federal Reserve is responsible for regulating the U.S. monetary system and setting monetary policy. Monetary policy refers to what the Federal Reserve does to influence the amount of money and credit in the U.S. economy. Policy instruments that affect the quantity of money and credit affect interest rates (the cost of credit) and the performance of the U.S. economy. The Federal Reserve’s three instruments of monetary policy are open market operations, the discount rate and reserve requirements. The Fed...

Write an essay on the structure and importance of monetary system in the context of the...

Write an essay on the structure and importance of monetary system in the context of the Indian economy.

Discuss the function and importance of conceptual modeling.

Discuss how investment banks operate, how they function in our financial system, and how they earn money and the importance of investment bank’s reputation to its survival.

(a) Discuss how investment banks operate, how they function in our financial system, and how they earn money and the importance of investment bank’s reputation to its survival.(b) Explain how Reserve Bank of Australia (RBA) retain control of interest rates. Explain which of the methods are more suitable in the current COVID-19 capital market.

Question