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
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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