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

Impact of Financial Markets on Economy, Businesses, and Individuals - Assignment ExampleRetirees depend 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 funding in the stock market, reducing the overall return and giving them slight purchasing powerThe federal reserve of the United States is the primaeval bank of the country which facilitates the banking dust of the country. It provides go 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 processing transactions and handling the issuance, transfer and redeem of government securitiesThe table of governors is official by the president to serve 14 years of office. Their primary responsibility includes the formulation of the monetary policy, authorise the currency circulation limitations and setting cash reserve requirements for the commercial banks (FederalReserve.gov, 2014). The board focuses on developing swift payments system in the country and implementing laws that are related to consumer credit. It sets marginal limits to the use of credit or security barter for and reserves regulatory and supervisory rights over the banking system. The moderate 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 consultatory council and other economic officials. The chairman also maintains me mbership of leading financial institutions internationally like the IMF, BIF and so on