Federal Agencies As Financial Intermediaries

Jan 3
09:01

2011

Rhab Hendrik

Rhab Hendrik

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The US government acts as a major financial intermediary to the borrowing and lending activities of its agencies as well as setting the terms for the best forex trading markets. Since the 1960s, federal agencies have been among the most rapidly growing of all financial institutions.This is an overview.

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The US government acts as a major financial intermediary to the borrowing and lending activities of its agencies as well as setting the terms for the best forex trading markets. Since the 1960s,Federal Agencies As Financial Intermediaries  Articles federal agencies have been among the most rapidly growing of all financial institutions.
The primary purpose of federal agencies are to reduce the cost of funds and increase the availability of funds to targeted sectors of the economy. The agencies do this by selling debt instruments which are called agency securities in the direct credit markets adds or near the government borrowing rate than lending those funds to economic participants in the sector they serve most of the funds provided by the federal agencies support agriculture and housing because of the importance of these sectors to the nations well-being. It is argued that these and other target sectors in the economy would not receive adequate credit at reasonable cost without direct intervention by the federal government.
Financial intermediaries by the financial claims of others and sell their own claims in financial markets as one would expect there many different types of financial claims issued in the primary markets by financial intermediaries and others economic units such as the federal government and large corporations. And to no one's surprise there are a large number of markets in which these claims are bought and sold. In this we see that there are different types of financial markets and important financial instruments on which a nation's economy is built on and must be strictly regulated else corruption will run rampant and the backbone of society will break if trader illegal leak forex trading tips.
It is the height of absurdity to find out that a farmer is paid to not farm. It is almost as egregious as a police officer who is paid to not stop crime. It is inherently wrong and no amount of explanation can make it right. Due to governmental subsidies it is cheaper to import beef from Australia than to purchase it from Kansas. These are symptoms that something is awry amongst these financial intermediaries and if allowed to go unchecked then eventually the dam will break.