Question

Explain the effect the Federal Reserve's policies have on financial markets, institutions and interest rates.

Answer 1

Effect the Rates - federal Reserve Policy have on 2 Interest Interest thom if the the when the Interest Rate is decrease the Economy growth in high and Interest Rate is increase than Economy growth in decrease. Accordny to federal Reserve policy Interest Rate is high than the the Inflation له الهام - If the Interest ate is Low than the Inflation is high. of the ent unempuyemant i high than the Inflation is now or the economy is. high and the interest rate is now According to the federal Reserve prices. The federal sets a target range for the Shost - term Lending rate, aka the federal funds gate the typically only influences long term interest rates. for Investors, longer teem interest rate are more important. facts beyond the fed's control impact long term rates. s

Effect the folosal Roservers Policy have on financial machof's o - The federal Reserve policies effect on security Returns. The security Returns meant The federal Reserve policies given & gauzanty of the Investment Returns, so federal Reserve Polictes called security Returns we found a nigh association between federal Reserve monetary Policy and asset return Across the spectrum of asset classes. It means the federal Reserve policy is given to a asset Return according to Investment plan. The federal Reserve Policy has a large infinenco on Return to the two most widely followed investment styles. The Investm- ent styles means According to the size of the Investment and the value of the Investment The size of the Investment means in the Investment is high According to federal policy than the retuen is also high and it the Investment size is Low than the return is also tam low The value of investment is also depend on the according the federal polley of the value of Investment is high than the return is also nigh.

effect the federal Reserve Policy have on Institutionis & The federal Reserve Poring main work in supervising and Regulations in term of Institution. The super using means the Institution are. control by a one institution or Board According to federal Reserve policy The Board is Regulating all Institutions According to rule and regulation under the federal Reserve The federal Reserve Polings main effect an. Institution is foreign Benks operating in the U.S.A. Edge Act and agreement Corporation is the Best Effect According to federal Reserve Poncy in Institution The foreign financial halding companies in the affected under federal Reserve poury Acording the federal Reserve Policies the operation modo of the Institutions satery is largest and smallest Bank Institutions are dany work According to federal Resorue Policy