Monthly Archives September 2015

MONEY AND THE FED

MONEY AND THE FED
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With its beginnings in 1914, the fed has attacked critics for what she is polusekretnye institution, observation closed to the public. Critics argue, for example, that even when the fed publishes the decisions, it does so with significant delay. In particular, discussions of the Federal Committee on open market operations published in the Gazette of the Federal reserve, but only after the next meeting of the Committee.Prior to the enactment of Humphrey – Hawkins in 1978, the fed was not required to declare the target benchmarks of money supply growth. The adoption of this act obliged the Chairman of the Federal reserve Board twice a year to discuss and explain to the U.S. Congress policy objectives...
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DISCOUNT WINDOW

DISCOUNT WINDOW
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After the adoption of the Act on the liberalization of Deposit institutions and monetary control in 1980 all Depository institutions have had access to the “discount window” the fed. Individuals, partnerships (partnerships) and corporations may also use the discount window for loans under “unusual urgent circumstances.” In fact, the discount window allows the fed to be considered a national lender of last resort. Thus, the discount window adds to the stability of the financial system, especially in times of crisis.The act on the Federal reserve of 1913 requires that all the loans extended through the discount window, were secured. In practice, as collateral, are securities of the U.S. government...
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OPERATIONS ON THE OPEN MARKET

OPERATIONS ON THE OPEN MARKET
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Under the open market operations refers to the buying and selling of securities on the open market Federal reserve Bank of new York. Daily Manager of internal operations (Manager for Domestic Operations) performs these operations in accordance with the directives of the Federal Committee on open market operations (message negatively affected, Federal Open Market Committee – FOMC)10. Operations on the open market is the most powerful weapon in the Arsenal of the fed. In fact, through them is determined by the amount of available Depository institutions non-borrowed funds. If the fed buys securities, the reserves of the system are growing; the sale volume of reserves decreases. When the Institute of Deposit excess reserves appear, i.e...
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The intricacies of the “family” business

There are cases when one or both spouses are engaged in business activities, using property owned by one spouse. Of course, this is their own business.
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However, a large number of judicial practice on family business gives the impression that the fact of any “business” relationship between husband and wife causes suspicion among tax authorities. Here’s what we will discuss in the article.
That “my” and “our” in family propertyAs a General rule, property acquired by spouses during marriage is their joint property (common property). To such property, in particular, include :

– the income of each spouse from the entrepreneurial activity;

– acquired at the expense of General revenues of movable and immovable things, securities, shares, deposits in banks, shares in the capital of organizations...

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The instruments of monetary policy the fed

The instruments of monetary policy the fed
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The main monetary policy instruments of the fed are reserve requirements, open market transactions and discount rate. Using each of these tools, the fed influences the money supply in the economy. In the early years of the fed’s main tools were the discount window. In recent years, the most significant instrument of monetary policy are open market transactions.
RESERVE REQUIREMENTS

Theoretically, the share of all funds received from the escrow Institute shall be kept at the fed or in the form of a Deposit, either in the form of cash. The percentage of funds which must remain at the fed, called the norm of obligatory reservation. This rule varies depending on the volume and type of funds, Deposit taken by the Institute.

The act of liberalization o...

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