Question

Assignment 1
Instructions
A. You have 2500 words to utilize
B. No more than 10% above the maximum nor 10% below the maximum word count
C. Use the Harvard referencing system
D. The deadline in the 20/09/2018 NO EXTENSIONS AVAILABLE
E. Submissions are to be made via the portal and no email submissions will be accepted
The Federal Reserve System is the central bank of the United States. It performs five general
functions to promote the effective operation of the U.S. economy and, more generally, the public
interest. The Federal Reserve
• conducts the nation’s monetary policy to promote maximum employment, stable prices, and
moderate long-term interest rates in the U.S. economy;
• promotes the stability of the financial system and seeks to minimize and contain systemic
risks through active monitoring and engagement in the U.S. and abroad.
Similarly our central bank BOZ is the equivalent of the FED. The Bank of Zambia (BoZ) is the
Central Bank of the Republic of Zambia and derives its functions and powers from the Bank of
Zambia Act, no,43 of 1996 and the Banking and Financial Services Act, Chapter 387 of the Laws of
Zambia. The Mission Statement of the Bank is to achieve and maintain price and financial system
stability to foster sustainable economic development.
As you can see both appear to be on the same track, critically assess the two banks by carrying out
an in-depth evaluation of their functions and highlight areas of improvement thats could be
recommended to both.

Answer 1

Although FED and BOZ appears to be on the same track but there is very much difference between their functions and duties.

Federal Reserve System:

The Federal Reserve System is the central bank of the United States. It is founded to provide the nation a safer and stable monetart system.

Functions of Federal Reserve System:

• Providing key financial services like clearing cheque, serving as a bank for US treasury, distributing the nation's currency to depository institutions.
• Lending to depository institutions ensuring properr liquidity in financial institutions.
• Examing the activities of other member banks.
• The Federal Reserve System works to promote a safe and efficient system for US Dollar transactions.
• The Federal Reserve System promotes consumer protection and community development.
• The Federal Reserve System conducts the nation's monetary policy to ensure a maximum employement, stable prices and long term moderate interest rates in US economy.

Bank of Zambia (BOZ)​

Bank of Zambia is the central bank of the Republic of Zambia.

Functions of Bank of Zambia:

• To formulate and implement the monetary policy.
• Management of Public Debt.
• Acts as a banker to the nation.
• Management of country's foreign reserve.
• To license, regulate and supervise bank and financial services.

​Areas of improvement recommended to both the systems:

• More transparancy
• Accountability
• More improved post-crisis framework