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Federal Reserve regulations

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Protecting Bank Customers

As you know from reading through the Background Materials, there are a large number of regulations that govern our banking system. But as a banking customer, how safe do you really feel?

Read the information in the background material, look for more information, and then write a 2 to 3 pages paper answering the following questions:

What is the main purpose of bank regulation in the USA?

Has the government installed enough regulations to protect bank customers, or should it enact more regulations?

[Think also in terms of the banks themselves and don't forget the desire of foreign bands to land on the US shores.]

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What is the main purpose of bank regulation in the USA?
The main purpose of the bank regulation in the USA is to protect the interest of bank customers. The banking regulation also protects the banking system and its integrity so that it provides support to business and commerce in the United States.
Let us consider the regulation relating to deposit accounts. The regulations protect the consumers, place reserve requirements, requires deposit insurance, and requires payment of interest on demand deposits. Each of these regulations protects the interest of depositors. Consider some specific examples, The Truth in Savings Act and The Expedited Funds Available Act 1987 each protect the rights of depositors.
Let us consider another set of regulations. There are regulations that impact lending of banks. These include laws relating of debt collection, credit cards, and lending limits. Each of these laws protects the interest of banking customers, namely the borrowers. ...

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This explanation provides you a comprehensive argument relating to Federal Reserve regulations

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Federal Reserve: Reasons for bank regulations, effect of policies

Assignment Overview

In the individual assignment due this week, students explore the reasons behind regulating banks and how that regulation relates to the formation of the Federal Reserve System. Students demonstrate an understanding of the effects Federal Reserve policies have on interest rates, financial markets, and financial institutions. Students are given the opportunity to participate in additional activities that further explore the risks faced by financial institutions and how those risks are measured.

In the Learning Team assignment due this week, students deepen their understanding of the services provided, main source of funding, interactions with financial markets, and how Federal Reserve policies affect financial institutions.

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