1) Determine the most significant monetary policy that the Federal Reserve Bank has been responsible for implementing in the past 12 months and the resulting impact to the U.S. economy.
Analyze how U.S. monetary policy affects the global economy. Cite at least two examples with your answer.
2) Of the money market securities described in Chapter 6, determine which you believe is a safer investment for investors and firms in today's economic environment. Support your response with evidence or an example.
Determine when the money market would be a wise fit for the average investor.
3) From the first e-Activity, analyze how the Federal Reserve's decision to keep interest rates low through late-2014 affects the bond market and determine if you are in agreement with this strategy.
Describe the relationship between the bond rate and inflation. Then, apply this relationship to advise a small-business owner who wants to start a pension fund for his / her employees. (Students are to provide their own details about the type of small business and employees of that business.)
Go to the MSN Money Website to read the news transcript titled " Investing lessons from the 1950s," dated February 21, 2012, located at http://money.msn.com/mutual-fund/investing-lessons-from-the-1950s-wsj.aspx. Be prepared to discuss.
Research the Internet or the Strayer Library to compare and contrast fixed and adjustable rate mortgages to determine the best choice for you in today's economic climate of either purchasing or refinancing a home. Be prepared to discuss.
4) Recommend a bond strategy for risk-tolerant and risk-adverse investors. Describe the key factors you considered when preparing the strategy.
Discuss a strategy to incorporate international bonds in your portfolio. If you don't already have a portfolio, pretend you are about to start one.
5) Create an argument related to mortgage-back securities that either supports or does not support that the benefits outweigh the costs. Provide support for your argument.
From the first e-Activity, determine the best choice for you in today's economic climate of either purchasing or refinancing a home. Support your response with details from fixed and adjustable rate mortgages.
6) From the second e-Activity, consider your chosen company is pondering an IPO in the next six months. Develop a strategy for the chosen company to meet its stated objective.
Take a position on the following statement: Investors should avoid investing in any penny stock. Support your position with evidence or examples.