Question

The Stock Market and the Economy Summary

Write a summary of the following:

Choose 4 financial markets or institutions. Briefly explain what each specializes in (mortgages, stocks, government securities, etc.).

Compare how each financial market you identified influences the US economy and global economy.

Answer 1

Answer:

Financial market would be :

i)Dow Jones Industrial Average which is had practical experience in exchanging of the vitality stock and other famous organizations of the United States economy.

ii)Nasdaq is an innovation or technology oriented stock and it is a worth weighted list and this will be reflecting the representation of different stocks which are pioneers of innovation/technology in the United States.

iii)Standard and Poor 500 index will be a value weighted index as a delegate of different stocks in the economy and it will be total reflection of United States economy at it is an agent of 500 stocks

iv)Federal reserve is a financial institution / establishment which is a Central Bank of United States and it is utilized to direct the banking segment in the economy and figure the fiscal strategy in like manner.

Comparing each financial market above influences the US economy and global economy.

Development of United States stock indexes like Dow Jones Industrial Average alongside Nasdaq and Standard and Poor 500 would have a dominant part of effect on the worldwide files in light of the fact that these are known as the mother indexes and they are influencing the development of the whole worldwide economy so when the United States stock index will be moving upward the most worldwide index will be following the US.

Central bank strategies are regularly repeated by other developed economy on the grounds that these are intelligent of ideal control measure which are taken so as to balance out the United States economy.