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Complexities of the U.S. Financial System

1.Describe how the U.S. financial markets impact the economy, businesses, and individuals.
2.Explain the role of the U.S. Federal Reserve, the Federal Reserve Chairman, and Board, indicating its effectiveness in today's economic environment. Provide support for rationale.
3.Explain how interest rates influence the U.S. and global financial environment. Provide support for explanation.
4.Describe how exchange rates may impact a business's decision to operate in foreign markets.

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Complexities of the U.S. Financial System

1. Describe how the U.S. financial markets impact the economy, businesses, and individuals.
The health of the stock and bond market affects the economy. If people see positive returns (especially in the stock market) people tend to feel more positive and buy more stock (this happens internationally somewhat as well). With business, it's the same way, people feel more confident, buy more, so businesses sell more. With individuals as discussed, people buy more (and also borrow more). The borrowing in turn helps businesses too.

2. Explain the role of the U.S. Federal Reserve, the Federal Reserve Chairman, and Board, indicating its ...

Solution Summary

The expert describes how the United States financial markets impact the economy.

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