Explain relationship between interest rate and bond price, Financial Accounting

Assignment Help:

1. Would export businesses prefer a rising or declining dollar? Would it be the same for a European tourist on a budget and visiting the Grand Canyon? Explain your answer.

2. What are 4 ways that the FED can use to create money? What are the most powerful one and what method the FED to create a gradual easing of the money supply either created or destroyed most often uses?

3. What is the meaning of the following: a stock option price, strike price and what are a put and a call?What is the advantage or disadvantage of purchasing stock options over stocks? What function do Mutual Funds play with Stock Market investments?

4. What is the difference between the discount rate, prime rate and the subprime rates of interest? Which interest rate in particular created the 2008 recession? Explain how that happened.

5. What is the difference between the FED targeting the interest rate vs. inflation and which one is Bernanke using today? Name a few countries that use this method today.

6. Give a brief history of how banking evolved into a sophisticated operation. Begin first with the Goldsmith and sum up with the Banking system that we experience today.

7. During the 1980 period, what did the FED Chairman Paul Volcker do to reduce double digit inflation of the 1970's? What was the name of the person and or the economic school's approach that Volcker used?

8. What is the relationship between the interest rate and bond prices? Is there any difference between T-Bills vs. Corporate bonds in reaching your assessment? When the stock market falls, where do you suppose that most investor place their money and why?

9. How does the FED use the bond market to create and destroy money? Which method do developed countries employ to reduce the chance of experiencing inflation? What about Banana Republicans and inflation, do they have this means available to them?


Related Discussions:- Explain relationship between interest rate and bond price

Plans to sell the forest, Washington-Pacific invests $2 million to take a t...

Washington-Pacific invests $2 million to take a tract of land and plant some young pine trees. The trees can be harvested in 13 years, at which time W-P plans to sell the forest at

Capita expenditure and revenue expenditure, The company selected a suitable...

The company selected a suitable site and commissioned a survey and valuation report, for which the fee was £1,500. On the basis of the report the site was acquired for £90,000. Sol

Creation-express trusts-trust laws and accounts, Creation An express tr...

Creation An express trust is "created not by facts and circumstances, but by the express words of the settlor". (Fitzgerald v Stewart) It may be created in the following ways:

Which of the following is not an example of an agency cost?, Which of the f...

Which of the following is NOT an example of an agency cost? A. Paying an accounting firm to audit your financial statements. B. Paying an insurance company to assure that b

Required: prepare journal entries for the above transactions, Sleek Ride, a...

Sleek Ride, a company providing limo services, has a December 31 year-end date. For Sleek Ride, the following transactions occurred during the ?rst 10 days of June: a. Purchased, o

Illustration of maximum possible loss method-partnership, Illustration of m...

Illustration of maximum possible loss method A, B and C have been partners for several years, sharing profits and losses in the ratio 2:2:1. They decided to dissolve the firm o

Partnership amalgamation, how to prepare the accounts when goodwill is not ...

how to prepare the accounts when goodwill is not to be maintained in the books

Fast - slow and non moving analysis, FSN Analysis: In this method inven...

FSN Analysis: In this method inventory items are classified as per the usage/consumption pattern. They are categorizing as: Fast Moving (F) items are stored in huge quant

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd