Complexities of the U.S. Financial System Essay

783 Words May 26th, 2014 4 Pages
Complexities of the U.S. Financial System
For the past few years after the financial crisis the United States financial system has been going through many changes. The financial system has impacted several environmental aspects in the economy, federal regulation and individuals. One way the United States financial market can impact the economy is by the use of use of mutual fund improvements using it as a tool for price changes, which will trigger the effect, by identifying the strong outcome of market prices. The decrease in valuation leads to a 7% increase in acquisition, likelihood, relative to a 6% takeover possibility. In addition, globalization has an impact in the financial markets by reducing companies' cost of capital.
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Recently the congress actions are more focus to increasingly improve the effectiveness of the payments system. The government party is achievement this actions by encouraging the increase use of technology. Furthermore, in the late 1800’s, the congress passed the Expedited Funds Availability Act or better known as: EFAA, which provided the panel, for the first time the authority to standardize the payments system in general, including those payments through the Reserve Banks.
The Federal Reserve Board has the authority under the Expedited Funds Availability Act to renovate the check-return system. In addition, the board improved the presentment privileges of private-sector banks and established governing rules to the time that financial banks can hold funds from the deposits of a checks into client accounts before it can make the moneys available for withdrawal. On the other hand, in the early 2000’s, the congress passed the 21st Century Act. For clearing checks by decreasing legal and concrete impediments to check transactions, and electronic collection of checks, which enhanced the effectiveness and the speed of the payments system.
There are key factors that focus in international policies, one key focus that has become a debate the past recent years is Global liquidity. The global financial environment reflects the view that drives the major position for international financial

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