Saturday, 22 August 2015

DISCOUNT RATE AND FEDERAL FUNDS RATE TARGET MADE BY THE U.S. FEDERAL

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Refer to the latest 2 changes to the discount rate and federal funds rate target made by the U.S. Federal Reserve and discuss the following:

  • How did the stock market indices react to these changes?
  • How did long-term U.S. Treasury bond yields react to these changes?
  • What happens to borrowers, savers, investors, and bank profits inside and outside the United States as these rates change?

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