Finance

[Name of the Institute]Complexities of US financial System

Introduction

The financial market in the United States of America plays a vital role in the economy. If there is no investor investing in the businesses then they cannot start up or grow larger in order to meet the country needs or the needs of the nations. The buying and selling of the stock directly affects the economy. Before the year 1929 when the market of United States of America got crashed it was booming. In France there is so much money that was being invested by France and when the economy rose therefore did the US. The economy of United States of America collapsed because everyone pulled their investment today and same thing has been happened. The business in the United States of America failed and the United States of America went into more debt.

Discussion

The central bank of United States of America controls the financial system and it is most powerful actor of the economy of United States of America. The head of the central bank of the U.S is known as the Chairman of the Federal Reserve. The chairman is designated by the president of the United States and serves a four year term with confirmation from the Senate, presently is Ben Bernanke. The Federal Reserve System has total of seven board members including the Chairman. With the exception of the Chairman members serve a stunned fourteen year term. The Federal Reserve Board of Governors has the responsibility for the money supply or the monetary policy and serves as a dependent political structure. Despite the fact that it is a dependent political structure and works or operates on its own, but the disagreement between the board and administration are extremely regular. Congress exerting pressure or the President can and have affected the ...