use examples to reinforce your ideas.
Locate 2 transactions in recent financial news to illustrate and explain the roles of financial intermediaries, and banks in particular, in these transactions. Furthermore, explain how these transactions would occur without a financial intermediary.
Part Two: 600 words
By reviewing the Federal Reserve website and/or other relevant resources, refer to the latest 2 changes to the discount rate and federal funds rate target made by the U.S. Federal Reserve and discuss the following:
- How did the stock market indices react to these changes?
- How did long-term U.S. Treasury bond yields react to these changes?
- What happens to borrowers, savers, investors, and bank profits inside and outside the United States as these rates change?
Part three:400 words
- Why do you think that inflation is so low in the U.S. economy at this time?
- Explain how monetary policy and actions by the Federal Reserve influence national economic goals of achieving full employment, controlling inflation, sustaining adequate growth, and achieving a stable balance-of-payments position.
- Which of these national economic goals have recent actions by the Federal Reserve addressed?
- In your opinion, have they been successful in achieving a balance?
Part Four: 600 words
What is inflation targeting? What are the advantages and disadvantages of inflation targeting? Compare and contrast the inflation targeting in the United Kingdom, Canada, and New Zealand.
Part 5: 400 words
Should financial institutions face more regulation, face less regulation, or do they already face sufficient regulation? Please focus your discussion on the Sarbanes-Oxley Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Part 6: 600 words
- Locate a U.S. municipal bond. You can use this bond screener to search for a municipal bond. Provide a description of the bond, the bond’s current yield, the bond’s yield to maturity, and the bond’s credit rating. Is the bond an investment-grade bond? How can you tell? Do you think that the bond will experience much interest rate risk? Please justify your decision.
- When federal, state, and local governments issue securities, what key roles do they play in the financial markets?
- How do these decisions affect you?
Financial Industry Regulatory Authority (FINRA). (2018). Bonds Retrieved from http://finra-markets.morningstar.com/BondCenter/Screener.jsp
Part7: 400 words
Name and describe at least 3 factors that impact the demand for money. What do you expect the price of a new laptop computer and a new car to cost in 6 months? Please justify your answer.
Part 8: 700 words
Assume that the U.S. economy just entered into a recession. What can the Federal Reserve do to try to get the economy out of a recession? Among other comments that you may make, please be sure to discuss the following:
- Describe the role of the Federal Open Market Committee of the Federal Reserve in the United States, and describe the tools available to the Federal Reserve to influence the nation’s money supply.
- Discuss the Federal Reserve’s open-market operations, and the importance of its role. How does another key central bank around the world conduct such operations, and why are they important? What recent open-market operations have the Federal Reserve and another country’s central bank taken?
- Explain what happens to the U.S. money supply when the Federal Reserve buys and sells Treasury bonds. Describe in detail how this has affected U.S. banks’ abilities to lend and the overall U.S. economy.
- Explain what has happened to the U.S. money supply and economy when another central bank outside the United States has bought and sold U.S. Treasury bonds.
- How do you think that you will be personally impacted by the recession?
Include at least 4 professional references and follow APA formatting.
Part 9: Fiscal Policy
- What is the importance of exchange rates?
- Who benefits and who loses when a country’s currency appreciates?
- Who benefits and who loses when a country’s currency depreciates?
- In the long run, what are the major factors that impact exchange rates?
- Understanding central banks impact exchange rates, select three central banks and demonstrate/ explain how this occurs.
Include at least 3 professional references and follow APA formatting.