Impact of Financial Markets on Economy, Businesses, and Individuals Assignment - 1

Impact of Financial Markets on Economy, Businesses, and Individuals - Assignment ExampleRetirees imagine highly on the returns of their pension funds. Thus, a fall in stock prices may lead to a loss to a portion of the syndicated investment of the keep in the stock market, reducing the overall return and giving them less purchasing powerThe federal reserve of the United States is the central bank of the pastoral which facilitates the banking system of the country. It provides services for account maintenance, payment and collection services, circulation currency and transferring funds. For the government it acts as a fiscal agent by honouring treasury check, electronically touch transactions and handling the issuance, transfer and redeem of government securitiesThe board of governors is constitute by the president to serve 14 years of office. Their primary responsibility includes the expression of the monetary policy, approving the currency circulation limitations and setting c ash reserve requirements for the commercial banks ( nationalReserve.gov, 2014). The board focuses on developing swift payments system in the country and implementing laws that be related to consumer credit. It sets marginal limits to the use of credit or security purchase and reserves regulatory and supervisory rights over the banking system. The chairman of the Federal Reserve is appointed by this board of governors as well. The chairman of the Federal Reserve is one of the active board members and assumes the role of the head of the central bank. Under his leadership, the board of governors of the Federal Reserve carries out their responsibilities of analyzing, interpreting and regulating the financial system of the country. The chairman is required to report to the congress bi-annually to relate the activities and decisions of the central bank. He maintains contacts with the presidents financial advisory council and other economic officials. The chairman also maintains membershi p of leading financial institutions internationally like the IMF, BIF etc.