A. The goal of monetary policy of France and united
states are to promote maximum employment, stable price and moderate
long term interest risk.
B. Monetary policy is central banks action and
communication that manage money supply.
C. Central Bank use interest rate,, banks reserve
requirement and amount of government bonds that banks holds.
1. The Banquet dear France is the central bank of
France and is responsible for implementation of France monetary
policy.
2. Federal Reserve system is central bank of united
states.
3. The primary objective of European Central Bank to
maintain price stability.
4. The main objective to provide nation with a safe
flexible and stable monetary system.
5. The ECB is committed to keeping inflation below but
close to 2% over the medium term in order to achieve this goal the
ECB uses a set of monetary policy instruments including setting the
key deposits rate.
6. The primary objective of Federal Reserve system is
to control inflation while avoiding recession. If domestic product
Growth rate is more than the ideal of 2-3% excess demand can
generate inflation by driven up for too few goods.
Similarities in Banking of France and united states:
A. Credit Cards
B. Deposits taking
C. Foreign exchange
D. Loan making
E. Payment related service
Differences in Banking of France and united states
A. The institute of international bankers list several activities
that may be permissible for banking organisation across
countries
In 2000 those five powers
I. Securities power
II. Insurance power
III. Real estate
IV. Business investment in industrial firms
V Industrial firm investment in Banking
B. The US Banking industry also is less highly concentrated than the banking industries in France
C. In France permitted to engage in securities and insurance activities that untill recently in US restricted by depression- era Banking laws.
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