Go to the NYSE Equities, Options, ETFs & Bonds and review the markets covered in Chapter 1. Next, review the Bloomberg article Fed’s Mester Lays Out the Case Against a July Interest-Rate Cut. Relationship of Interest Rate to the Stock Market

Go to the NYSE Equities, Options, ETFs & Bonds and review the markets covered in Chapter 1. Review the Bloomberg article Fed’s Mester Lays out the Case against a July Interest Rate Cut.
What markets will you believe be affected most by interest rate forecasts

Relationship of the Stock Market to Interest Rate

The ability for companies and consumers to obtain credit depends on the interest rates. To boost growth and economic activity, the central banks lowers interest rates in times when financial stability is low. Barakat et. al. (2016) state that the goal is to decrease lending rates to make it easier for consumers to expend and invest. Changes in interest rates affect the economy as well as consumer credit, stock market volatility, and consumer spending. A rise in interest rates can have a rapid impact on stock markets. But, any larger effect on other areas of the economy could take longer. 

Low interest rates directly impact the bond market. With submits from US Treasury Bonds to corporate bonds falling, potential capitalists are attracted. The bond market rises when interest rates decrease. Likewise, hiking interest rates weakens bond costs, placing fixed-income venture capitalists at a pitfall (Fabozzi & Fabozzi, 2021). As interest rates rise, people are more reluctant to purchase or recapitalize existing credits. Furthermore, investing in equities can sometimes be deemed too risky when the interest rate is higher. This could lead to very few purchases, or vice versa. If the Federal Reserve announces a rate decrease, buyers and investors will likely spend more. This ………… can cause stock prices to rise

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more