The primary function of a central bank is to manage the nation's money supply (monetary policy), through active duties such as managing interest rates, setting the reserve requirement, and acting as a lender of last resort to the banking sector during times of bank insolvency or financial crisis. Central banks usually also have supervisory powers, intended to prevent bank runs and to reduce the risk that commercial banks and other financial institutions engage in reckless or fraudulent behavior. Central banks in most developed nations are institutionally designed to be independent from political interference. Still, limited control by the executive and legislative bodies usually exists. The chief executive of a central bank is normally known as the Governor, President or Chairman. History Prior to the 17th century most money was commodity money, typically gold or silver. Bank of England The sealing of the Bank of England Charter (1694). Spread around the world
Related: Banking and finance issues
Bank for International SettlementsThe Bank for International Settlements (BIS) is an international financial institution owned by central banks which "fosters international monetary and financial cooperation and serves as a bank for central banks". The BIS carries out its work through its meetings, programmes and through the Basel Process – hosting international groups pursuing global financial stability and facilitating their interaction. It also provides banking services, but only to central banks and other international organizations. It is based in Basel, Switzerland, with representative offices in Hong Kong and Mexico City. History BIS main building in Basel, Switzerland The BIS was established in 1930 by an intergovernmental agreement between Germany, Belgium, France, the United Kingdom, Italy, Japan, the United States, and Switzerland. It opened its doors in Basel, Switzerland, on 17 May 1930. The BIS's original task of facilitating World War I reparation payments quickly became obsolete.
Money supplyMoney supply data are recorded and published, usually by the government or the central bank of the country. Public and private sector analysts have long monitored changes in money supply because of its effects on the price level, inflation, the exchange rate and the business cycle. That relation between money and prices is historically associated with the quantity theory of money. There is strong empirical evidence of a direct relation between money-supply growth and long-term price inflation, at least for rapid increases in the amount of money in the economy. For example, a country such as Zimbabwe which saw extremely rapid increases in its money supply also saw extremely rapid increases in prices (hyperinflation). This is one reason for the reliance on monetary policy as a means of controlling inflation. The nature of this causal chain is the subject of contention. Empirical measures in the United States Federal Reserve System Fractional-reserve banking Example
J. P. MorganJohn Pierpont "J. P." Morgan (April 17, 1837 – March 31, 1913) was an American financier, banker, philanthropist and art collector who dominated corporate finance and industrial consolidation during his time. In 1892 Morgan arranged the merger of Edison General Electric and Thomson-Houston Electric Company to form General Electric. After financing the creation of the Federal Steel Company, he merged in 1901 with the Carnegie Steel Company and several other steel and iron businesses, including Consolidated Steel and Wire Company owned by William Edenborn, to form the United States Steel Corporation. Morgan died in Rome, Italy, in his sleep in 1913 at the age of 75, leaving his fortune and business to his son, John Pierpont "Jack" Morgan, Jr., and bequeathing his mansion and large book collections to The Morgan Library & Museum in New York. Childhood and education J. Career Early years and life J. J.P. After the 1893 death of Anthony Drexel, the firm was rechristened "J.
Paul TuckerPaul Tucker may refer to:Fractional-reserve bankingFractional-reserve banking is the practice whereby a bank holds reserves in an amount equal to only a portion of the amount of its customers' deposits to satisfy potential demands for withdrawals. Reserves are held at the bank as currency, or as deposits reflected in the bank's accounts at the central bank. Because bank deposits are usually considered money in their own right, fractional-reserve banking permits the money supply to grow to a multiple (called the money multiplier) of the underlying reserves of base money originally created by the central bank. Fractional-reserve banking is the current form of banking in all countries worldwide. History Fractional-reserve banking predates the existence of governmental monetary authorities and originated many centuries ago in bankers' realization that generally not all depositors demand payment at the same time. How it works In most legal systems, a bank deposit is not a bailment. Economic function Formula
12 Eye-Catching Resume TipsinShare761 Gone are the days of simply mailing your resume, receiving a call, shaking hands at the interview and agreeing on a start date for that new job. The Internet has taken over the recruiting landscape and everyone is required to submit a resume online. While that brings greater efficiency to the process for employers, it can be awfully maddening for job seekers. But it doesn’t have to be that way if you know how to navigate the system. Consider these 12 tips before pressing “submit:” 1) Search job boards and the websites of employers that appeal to you. 2) Use a highlighter to mark the keywords and industry language used to describe the requirements and responsibilities of each position. 3) Compare those words and phrases to the language that appears in your current resume. 4) Figure out how and where to add the most relevant keywords to your resume, assuming you have the specific knowledge, skills and experience. 7) Never submit a generic, one-size-fits-all resume or cover letter.
Rockefeller familyThe Rockefeller family /ˈrɒkɨfɛlər/ is an American industrial, political, and banking family that made one of the world's largest fortunes in the oil business during the late 19th and early 20th centuries, with John D. Rockefeller and his brother William Rockefeller primarily through Standard Oil. The family is also known for its long association with and control of Chase Manhattan Bank. They are considered to be one of the most powerful families, if not the most powerful family, in the history of the United States. Real Estate and Institutions The Rockefeller Center and the RCA Building, December 1933 The family was heavily involved in numerous real estate construction projects in the U.S. during the 20th century. Chief among them: Conservation The family was honored for its conservation efforts in November, 2005, by the National Audubon Society, one of America's largest and oldest conservation organizations, at which over 30 family members attended.
Bank runAmerican Union Bank, New York City. April 26, 1932. A bank run (also known as a run on the bank) occurs when many clients withdraw their money from a bank, because they believe the bank may cease to function in the near future. In other words, it is when, in a fractional-reserve banking system (where banks normally only keep a small proportion of their assets as cash), numerous customers withdraw cash from deposit accounts with a financial institution at the same time because they believe that the financial institution is, or might become, insolvent; they keep the cash or transfer it into other assets, such as government bonds, precious metals or gemstones. When they transfer funds to another institution, it may be characterized as a capital flight. Several techniques have been used to try to prevent bank runs or mitigate their effects. History Bank runs first appeared as part of cycles of credit expansion and its subsequent contraction. Theory Systemic banking crisis