Two regulations that had a particularly strong impact on the banking industry in the United States were the Glass-Steagall Act (GSA) passed in 1933 that prohibited banking organizations to get involved into both investment banking and commercial banking industry, and the Gramm-Leach-Bliley Act (GLBA) passed in 1999 that repealed the prohibition of GSA to combine […]
Inflation and deflation, in fact, are two sides of the same coin: inflation shows how prices of goods and services have risen, and deflation how they fell. Both these conditions may adversely affect the return on investment, and therefore these are the economic factors that must be taken into account when planning and managing investments. […]
Theory confirmed by practice says that in a healthy economy prices must rise – thus, consumers will have a permanent incentive not to postpone the purchase of durable goods, and manufacturers – the investments in hardware upgrades. Experience has shown that the optimal inflation rate is less than 2 percent a year. So there is […]
The choice of the bank is very important for me because it determines the safety of my funds. This is why reliability of the bank and its stability are the major factors that determine my choice of the bank. At the same time, the choice of the bank also depends on other factors that may […]
The US has historically been a state based on the principles of free market and perfect competition. However, increasing economic growth and increasing interdependence among countries resulted in regional, in the first place, and then global crisis. For example, the Great Depression was the starting point for the development of the economic theory of John […]
The purpose of this paper is to discuss the perceived changes of interest rates over the next two years and to consider the changes that will happen to consumer spending plans and to personal spending plans related to the anticipated actions of the Federal Reserve. In my opinion, the Federal Reserve is about to start […]
Basing on Davidson and Blumberg (2010) and Garbade (2011), quantitative easing is one of the unconventional tools of monetary policy, under which the Federal Reserve buys banks’ debt obligations (bonds) of mortgage agencies and US Treasury bonds, pouring into the financial system a certain amount of money. The central bank changes the amount of money […]
Today, purchases can be made in different ways. In this regard, the analysis of my payment methods reveal the growing trend to the wider use of electronic and credit card payments, which comprise the larger part of all payments that I make, whereas cash comprise the minimal level of payments that I make. The method […]
There are several advantages of the U.S. having its own currency as compared to the European countries using the Euro: a) the American economy can better respond to crisis situations and financial shocks because the country has a unified monetary policy, unlike the Eurozone; b) there is a greater flexibility of workforce, investments and greater […]
In 1975, the legislation which is now called Individuals with Disabilities Education Act (IDEA) was enacted. According to the IDEA, students with disabilities have the right to receive appropriate free public education in the least restrictive environment. The IDEA applies to children who have learning disabilities, emotional disturbances, autism, hearing and vision impairments, mental retardation, […]