2.How The .S Financial System Works.docVIP

2.How The U.S Financial System Works The banking system has more than 14 trillion dollars a day payment transactions, the dollar in the corners of the world for the normal operation of the business activities. And evaluate whether the us economy run well, observe the huge trading dollar liquidity is a very good method. Payment Risk Committee (Payments Risk Committee) to a recent study that we can against the dollar, days flow is a more detailed understanding. All non-cash transactions need to settle the banking system, Banks and other professional financial market entities (financial market utilities, FMU) is responsible for providing settlement services, including large shift, government bonds and settlement, foreign exchange settlement, CCPS service (central counterparty, CCP), the central securities custody (central securities depositories) and electronic retail liquidation. Banks and between FMU and their internal will have such a financial transaction. The federal reserve bank of deposit financial institutions to provide settlement services, in the United States and the clearing Banks for their clients as well as the FMU provide similar services, and clearing Banks can provide settlement services for government bond dealers. Is the figure below shows the dollar payment, clearing and settlement system, the arrow in this picture said cash flow and different ? The following table compares the FMU and clearing bank liquidation transaction volume, the amount of cash you need clearing Transactions, trading entity between the capital circulation, respectively called Payment the Transactions, Funding the Transactions, Funding Flows, namely the three column headings in the table below. We give an example to illustrate how these values are respectively calculated: a market borrowers to CCPS (CCP) of $10 billion, then the CCPS will return $10 billion to market borrowers. So in this case, the trading Payment (Payment the Transactions) of $10 billion, amount of cash you