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    Impact of the Federal Funds Rate on Saving vs. Investing

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    Investors should save when interest prices go up. Do you think most smart investors are doing this?
    Do you think our interest rates currently, at the national level, are reasonable?

    © BrainMass Inc. brainmass.com October 10, 2019, 7:32 am ad1c9bdddf
    https://brainmass.com/business/accounting/impact-federal-funds-rate-saving-investing-585508

    Solution Preview

    Saving Based on Interest Rate Questions
    Investors should save when interest prices go up. Do you think most smart investors are doing this?
    Do you think our interest rates currently at the national level are at a reasonable level?

    Do you think most smart investors are doing this?
    When interest rates increase, an investor has to examine all of his/her options. The investor will have to compare the average dividend yield on a stock to the interest rate on a certificate of deposit (CD) or the U.S. Treasury bond (T-bonds). The option typically selected in based on the investment that will ...

    Solution Summary

    This 359 word solution is an examination of the impact that the Federal Reserve increasing the federal funds rate has on savings, investing and the national economy in general. It includes a prediction for the future direction of the federal funds rate as well as links to the utilized sources.

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