Questions from Financial Markets

Q: Would increasing the money supply growth place upward or downward pressure on

Would increasing the money supply growth place upward or downward pressure on interest rates?

Q: The previous strategy of attracting more one-year NCDs could affect

The previous strategy of attracting more one-year NCDs could affect noninterest expenses and revenues. How would noninterest expenses be affected by this strategy of offering additional loans to small...

Q: Now assume that the bank is considering a strategy of increasing its

Now assume that the bank is considering a strategy of increasing its consumer loans by $1 billion instead of using the funds for loans to small businesses. Using this information along with all the or...

Q: During periods when investors suddenly become fearful that stocks are overvalued,

During periods when investors suddenly become fearful that stocks are overvalued, they dump their stocks, and the stock market experiences a major decline. During these periods, interest rates also te...

Q: What are the implications of Regulation FD?

What are the implications of Regulation FD?

Q: Explain how and why the option premiums may change in response to

Explain how and why the option premiums may change in response to a surprise announcement that the Fed will increase interest rates even if stock prices are not affected.

Q: Consider a discussion during FOMC meetings in which there is a weak

Consider a discussion during FOMC meetings in which there is a weak economy and a war, with potential major damage to oil wells. Explain why this possible effect would have received much attention at...

Q: Suppose that the U.S. Treasury decided to finance its

Suppose that the U.S. Treasury decided to finance its deficit with mostly long-term funds. How could this decision affect the term structure of interest rates? If short-term and long-term markets are...

Q: Assess the economic situation today. Is the current presidential administration more

Assess the economic situation today. Is the current presidential administration more concerned with reducing unemployment or inflation? Does the Fed have a similar opinion? If not, is the administrati...

Q: Jayhawk Forecasting Services analyzed several factors that could affect interest rates in

Jayhawk Forecasting Services analyzed several factors that could affect interest rates in the future. Most factors were expected to place downward pressure on interest rates. Jayhawk also expected tha...