Here is the synopsis of our sample research paper on MONEY AND INTEREST RATES. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 4-page paper focuses on how the Federal Reserve controls and monitors interest rates. Bibliography lists 3 sources.
Page Count:
4 pages (~225 words per page)
File: AS43_MTmoneinte.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
lowering interest rates. Typically, the organization raises and lowers such rates (which is the cost of borrowing money from a bank) based on various economic factors. The raising and lowering
of interest rates is how the Fed controls the nations supply of money. The economic concept of supply and demand is apparent here, as are aggregate demand curves for goods
and services (McCain, 1997). In this case, the "demand" is for money, as opposed to goods. However, the Fed has had more or
less a "hands-off" policy on relying on price stability through control of the money supply; a situation that, in light of the financial meltdown of late 2008, is causing the
pendulum to move back to putting more control of money in the Feds hands. This is, however, an issue that came up as far back as 2007 (What Goes Around,
2007). The following questions cover some issues about the Federal Reserve. What major economic indicators would you examine if you were planning to
make a large purchase and needed a loan? Certainly, the interest rates by the Federal Reserve would be a good start. Other areas
might include leading inflation indicators, such as unemployment reports (low unemployment can lead to higher inflation); employment costs and productivity; the consumer price index (how much it costs to purchase
a particular basket of goods); and the producer price index (how much it cost to produce whats produced in the economy (Woodruff, 2010). All of these can have an impact
on the loan that the consumer might want to examine. Personal information (such as a clean credit report) also has an impact on the interest rate of a loan (Woodruff,
...