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.
- 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?
- 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.