Assignment 1: Financial Markets and Institutions

1. Explore one (1) financial market and the types of transactions supported by it in the U.S. and global economies. Determine how valuable these transactions are to the overall U.S. and the global economies.

2. Evaluate all the factors that affect interest rates to determine the one that appears to impact interest rates the most in today’s economic climate. Support your answer with evidence and examples.

3. Analyze the ease or difficulty of forecasting interest rate changes. Assess the value the forecast provides.

4. Examine why the Federal Reserve was created. Then construct an argument as to whether or not the Federal Reserve’s major roles are essential to the U.S. economy.

5. Choose a recent monetary policy (adopted during the past twelve (12) months). Analyze its current and future impact on the U.S. and global economies.

6. Imagine you are a financial manager. Develop a strategy for the use of bond markets by either an investor or firm of your choice to meet a stated financial objective of your choice for that investor or firm.