Overview of the Financial System

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Overview of the Financial System by Mind Map: Overview of the Financial System

1. Central Bank

1.1. Functions of modern central bank

1.1.1. 1.The government's Bank

1.1.2. 2.The Bank's bank

1.2. ObJectives of a modern central bank

1.2.1. 1.Low,stable inflation 2.HIgh, stable growth 3.Financial system stability 4.Stable interest rate 5.Stable exchange rate

1.3. Tools of monetary policy

1.3.1. 1.Open market operations

1.3.2. 2.Discount rate

1.3.3. 3.Reserve requirement

1.4. The Federal Resverve System

1.4.1. 1.The Federal Reserve District banks

1.4.2. 2.The Board of Governors of the Federal Reserve Systeam

1.4.3. 3.The Federal Open Market Committee

1.4.4. 4.The Federal Advisory Council

1.4.5. 5. 2,800 Member commercial banks

2. Financial system

2.1. Financial markets

2.1.1. Very important role in the economy.

2.1.2. - Functions of financial market : 1.Function of channeling funds 2.Function of encouraging saving and investment 3.Function of raising the financial asset's liquidty.

2.1.3. - Structure of financial market : 1.Debt and equity markets 2.Primary and secondary markets 3.Exchanged and Over-the-counter Markets 4.Money and capital markets.

2.2. Financial instrucments

2.3. Financial institutions

3. Financial Intermediaries

3.1. Functions of financial intermediaries 1. Transaction cost 2.Risk sharing 3.Asmmetric infomation

3.2. Types of financial intermediaries 1.Depository Institutions 2.Contractual Savings institutions 3.Contractual Savings Institutions 4.Investment Intermediaries 5.Finance Companies 6.Mutual Funds 7.Money Market Muatual Funds