Interest Rates, Banking And Monetary Policy

discuss how you are affected by the Federal Reserve’s monetary policies. In your discussion, please consider the following questions or statements.

  1. Think about a recent purchase you made that required a loan, like a house, or a new car.  Explain how you arrived at the decision to purchase.  Then explain how the interest rate on the loan affected your purchase.  For instance, were you able to purchase a higher priced item because the interest rate was low?
  2. Thinking deeper about your answers; how do interest rates affect millions of other buyers and their decisions, then how that affects the whole economy? Explain.

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