Answer These questions in a 1-2 paragraphs each What is the Fed Funds rate and why...

Answer These questions in a 1-2 paragraphs each

What is the Fed Funds rate and why is it important?

Difference between Money Markets and Capital Markets (why are Money Markets important?

One form of Bond guarantee is a Credit Default Swat (CDS) - What is a CDS and why would an investor purchase one?

Expert Solution

1. Federal Reserve uses the fed fund rates in order to control the inflation and regulate the economy and money flow by encouraging healthy economic growth . Federal fund rates can be raised in order to stimulate the economy while Federal Reserve can increase the federal fund rate to control the money flow in the economy.

2.money markets are markets which are used by business organisation for short term borrowing, while capital market are long term securities market and they are used to raise capital for long term capital. Capital markets include equity Markets and debt markets while debt market includes securities like certificate of deposits, commercial paper, swaps.

3. Credit default swaps are credit derivative contracts that help the investors to swap credit risk on a company or a country. It is a type of financial swap agreement in which the seller of credit default swaps will compensate the buyer in event of a default by the debtor or other credit event. American international Company wrote a lot of credit default swaps, if we had to give an example, and that lead to American international Company to brink of bankruptcy.

jeff jeffy answered 1 year ago

2. What exactly is the Fed Funds Rate, and why isn’t it considered a “tool of...

2. What exactly is the Fed Funds Rate, and why isn’t it considered a “tool of monetary policy? 2.1Define and discuss interest rate risk. What are the two risk components of interest rate risk and how do these interact with each other? 2.2Explain how and why the U.S. forward exchange rates are related to short-term interest rates in the United States and Germany.

Discuss each question in 1-2 paragraphs. Answer the questions in “answer and question format”, that is,...

Discuss each question in 1-2 paragraphs. Answer the questions in “answer and question format”, that is, when you are posting, include both the questions and your answers. What are some challenges associated with working conditions in a globalized economy that effect US workers?

Please answer the following questions. (1-2 paragraphs for each question). 1.)What are the industry attributes of...

Please answer the following questions. (1-2 paragraphs for each question). 1.)What are the industry attributes of Realty Income Corporation? Briefly describe any attributes of the industry that have a major effect on the performance of Realty Income Corporation. For example, what factors affect demand for the company's product? 2.) Has Realty Income Corporation been profitable over the last 3 years? Have profits increased or decreased? Perform a DuPont Analysis.

Please answer the following questions on the 2008 financial crisis please answer 1-2 paragraphs each. What...

Please answer the following questions on the 2008 financial crisis please answer 1-2 paragraphs each. What was the financial situation that consumed Wall Street and the Federal government in 2008? Which government officials played critical roles in addressing the financial crisis, and how did they address it? How would you critique the ethical culture of Wall Street and those insiders on Wall Street who triggered the financial crisis? 4. Who is to blame? Are there any good guys here?

Create two posts, each with an answer to these questions: What is “The Fed”? What are...

Create two posts, each with an answer to these questions: What is “The Fed”? What are its functions? What changes in the functions of The Fed arose through the Financial Crisis? I am particularly interested in the third part of this question. Use support from your text and one citation. Below are two hypothetical ways The Fed may be appointed. Would you favor either one of these two methods over the present method? Why or why not? In your answer,...

2. How does the Fed control the federal funds rate? If the Fed wants to lower...

2. How does the Fed control the federal funds rate? If the Fed wants to lower the federal funds rate, what will it do? 3. When will the Fed want to raise the Federal funds rate? What is the ultimate effect on real GDP and the inflation rate from raising the federal funds rate? 4. Tell the path through which a fall in the federal funds rate affects real GDP and inflation. 5. What role does the multiplier effect play...

Typically, the Fed targets the fed funds rate. Assume that the Fed is operating the usual...

Typically, the Fed targets the fed funds rate. Assume that the Fed is operating the usual way, targeting a specific fed funds value (such as its present target), when the rate of economic growth begins to slow. Outline: (i) the actions the Fed would have to take to sustain its current interest rate target; (ii) the likely impact those actions will have on the rate of economic growth; and (iii) how the yield curve can be expected to change as...

Typically, the Fed targets the fed funds rate. Assume that the Fed is operating the usual...

Typically, the Fed targets the fed funds rate. Assume that the Fed is operating the usual way, targeting a specific fed funds value (such as its present target), when the rate of economic growth begins to slow. Outline: (i) the actions the Fed would have to take to sustain its current interest rate target (ii) the likely impact those actions will have on the rate of economic growth (iii) how the yield curve can be expected to change as a...

in 2 paragraphs, respond to the following questions. 1. Why is it important to have an...

in 2 paragraphs, respond to the following questions. 1. Why is it important to have an independent judiciary (meaning one free from undue political influence)? 2. What are some ways that independence has been maintained by our courts?

Write 2 Paragraphs! Each paragraph should answer and discuss the questions below. (One paragraph for each...

Write 2 Paragraphs! Each paragraph should answer and discuss the questions below. (One paragraph for each question.) Question #1: Vanessa notices that even though her 80 year old grandmother keeps her thermostat set at 80 degrees, she still wears a sweater in her house. When Vanessa asks her grandmother why, her grandmother tells her she is cold. Vanessa can't understand this and asks you for an explanation. What would you tell her? Question #2: Tess is diagnosed with a disease...

Question

Answer These questions in a 1-2 paragraphs each What is the Fed Funds rate and why...

Solutions

Expert Solution

Related Solutions

2. What exactly is the Fed Funds Rate, and why isn’t it considered a “tool of...

Discuss each question in 1-2 paragraphs. Answer the questions in “answer and question format”, that is,...

Please answer the following questions. (1-2 paragraphs for each question). 1.)What are the industry attributes of...

Please answer the following questions on the 2008 financial crisis please answer 1-2 paragraphs each. What...

Create two posts, each with an answer to these questions: What is “The Fed”? What are...

2. How does the Fed control the federal funds rate? If the Fed wants to lower...

Typically, the Fed targets the fed funds rate. Assume that the Fed is operating the usual...

Typically, the Fed targets the fed funds rate. Assume that the Fed is operating the usual...

in 2 paragraphs, respond to the following questions. 1. Why is it important to have an...

Write 2 Paragraphs! Each paragraph should answer and discuss the questions below. (One paragraph for each...