Business Management Decisions on Federal Reserve Regulations
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1. Suppose a new and more liberal Congress and administration are elected. Their first order of business is to take away the independence of the Federal Reserve System and to force the Fed to greatly expand the money supply. What effect will this have on your organization and/or industry? What about interest rates and the general consumer? Would you support or oppose such an expansion? Why?
2. Would a failure to recognize growth options tend to cause a firm's actual capital budget to be above or below the optimal level? Would your answer be the same for abandonment, timing, and flexibility options? Explain using a practical/hypothetical example from your industry.
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Solution Summary
The review into how the federal reserve organization can impact businesses industries decisions for sustainability and competition if processes are changed.
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1. Suppose a new and more liberal Congress and administration are elected. Their first order of business is to take away the independence of the Federal Reserve System and to force the Fed to greatly expand the money supply. What effect will this have on your organization and/or industry? What about interest rates and the general consumer? Would you support or oppose such an expansion? Why?
Try and think in terms of the type of industry reaction in relations to the type of situation posed by the removal of the independence of the Federal Reserve System, such as the effect; regarding the housing market. Moreover, the effect to consider in your final write up of research on this matter is to consider that in the loan mortgage lending industry that works in alignment of the real estate / housing market, the response will be horrific, mainly due to the increasing of the money supply causing inflation and house prices to increase (Jennings, 2010). ...
Education
- BA, American Intercontinental University
- MBA, American Intercontinental University
- PhD (IP), Grand Canyon University
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