Question

Go to the Federal Reserve website and get a list of the type of databases available to the public. Comment on how managers can use this type of info to make better decisions. Try to give examples

Answer 1

The federal reserve is the central bank of United states. It makes the monetary policy for US.

The monetary policy means that the fed regulates the money and credit in the US economy.

The federal website has a variety of databases, some of which are as:

01. Foreign exchange rates: The fed publishes daily data of exchange rates between US and other major economies in the world. Managers who are in the business of international trade can use this data to understand the daily variance that an exchange rate goes through. They can plan their foreign payments when the rates are favorable for them in the short term. They can also hedge their risk by investing in currency futures.

02. Interest rate data: The primary way of controlling the money supply in an economy is by controlling the interest rates. The fed states the interest rates of various tenures. Managers in the feild of corporate finance who manage debt and equity of their firms can make use of the data to find when debt is cheap and when it is costly. Also, the low interest rate means that fed is tring to push up consumption and investement in the economy.  

03. Industrial production and capacity utilization data: The data pertains to industrial capacity utilization. Managers can use this data to get an understanding of the current position of their industry. thus, getting an understanding whether their company is performing better or worse as compared to the general industry outlook.

04. Bank Assets and liabilities data: the data provides the position of commercial banks of US. Managers can use this data to get a hold of US banking system strength. Also, they can approach strong banks for keeping their financial assets safe and for getting operational help.