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Essay Available:
Pages:
2 pages/≈550 words
Sources:
3 Sources
Style:
APA
Subject:
Mathematics & Economics
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 8.64
Topic:

The Regulator’s Challenges in the US Financial Industry

Essay Instructions:

Length of the essay: 1.5 pages minimum, 2 pages maximum, double-spaced. Note: The 1.5-2 pages do not include tables, graphs, and other visuals, and the bibliography, which are to be presented/displayed at the end of the text. Any text beyond 2 pages will not be considered.
Note: Please be sure that you ready "your task” below to understand what is expected of you. Each aspect of the task influences/counts for your grade on the Essay.
Topic of the Essay: “The Regulator’s Challenges in the US Financial Industry”
Description of the topic:
The functioning and performance of the financial industry are influenced by the regulatory measures (or instruments or frameworks) adopted and enforced by the government. These measures and frameworks have evolved and finetuned over time to make them more efficient at minimizing risk of banking crisis and to improve the performance of the banking industry. However, regulation still faces a number of challenges; it cannot eliminate risks in a world characterized by information imperfections, exogenous and endogenous shocks, technological innovation, and globalization.
Your task: In this essay, you are asked to:
Choose one regulatory measure or framework that has been/was adopted by the US government to regulate the US financial industry, and describe its key goals (what was it set to achieve?);
Describe its motivations; that is, why it was established (what problems was it meant to resolve)?
Discuss whether the measure has been able to achieve its goals and provide some evidence for success or failure. Then,
if you found that the measure was successful, say why it was successful (what helped to make it successful?);
if not, say what were/are the sources of the challenges that prevented achieving the objectives (why it was not successful?).
Bibliography: Present a bibliography comprising of at least 3 references. These references must be cited/referenced in the text; that is you must use the references in writing your essay, not just list them in the bibliography.
Data sources: Present the sources of any data that you use in the text and in the tables and graphs.

Essay Sample Content Preview:

The Regulator’s Challenges in the US Financial Industry
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The Regulator’s Challenges in the US Financial Industry
Open market operation (OMO) refers to the Federal Reserve’s buying and selling securities on the open market (Chapter 16). The Fed undertakes open market operations in order to regulate the amount of cash held in reserve by American banks. The Fed buys treasury securities to surge the money supply as well as sell to minimize it. By utilizing OMO, the Fed may alter the federal cash rate, affecting other long-term, short-term, and foreign currency prices. This can impact the amount of cash and credit available in the economy, as well as unemployment, production, and the price of goods (Hopper, 2019). The Central Bank can reduce interest rates by purchasing securities. Similarly, it can sell securities from its balance sheet, remove funds from circulation, and increase interest rates.
Open market operations’ main objective is to control the economy’s supply of money. The Federal Reserve buys government assets from the market to inject liquidity into the system, as well as selling government securities to drain liquidity from the system when it wishes to raise the amount of money in circulation in the economy (Chapter 17). On a daily level, these procedures are frequently carried out in a way that balances recession or inflation while assisting banks in continuing to lend. The nation’s Central Bank modifies the system’s quantity and cost of money by adjusting OMO and other tools of monetary policy like the statutory liquidity ratio as well as the repo rate. This execution is guided by monetary aims, like interest rates, recession, inflation, or exchange rates.
The open market operation was established to alter the reserve balances of US banks and precipitate variations in the current interest rate. In figure 1.1 in the appendix, during an open-market operation, the Federal Reserve sells securities and requires borrowers to pay back more of their outstanding debt (Cooper & John, 2012). Security pri...
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