Money Supply - McGraw-Hill Introduction to Business

[VIDEO] How the Fed Steers Interest Rates to Guide the Entire Economy

March 17, 2022

With inflation rising to its highest levels in 40 years, the Federal Reserve plans to take action by raising interest rates in an effort to get the money supply under control. This video looks at the ways the Fed guides the economy by influencing the federal funds rate, which then affects everything from banking policies to the housing market.

Questions:

Why is the Fed planning to raise the federal funds rate?
How does the federal funds rate eventually affect Continue reading →

Regulation, Federal Reserve, Money Supply, Inflation, Economics

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 20: Money and Financial Institutions, Bonus Chapter A: Business Law, Videos

[VIDEO] Why Investors Are Obsessed With the Inverted Yield Curve

August 23, 2019

NickelsMcHughMcHugh

Last Wednesday, the stock market tanked after the yield curve for the bond market became inverted, meaning that interest rates on short-term bonds grew higher than those paid on long-term bonds. The video below takes a look at this complicated concept and explains why the “inverted yield curve” can be a warning sign of a recession.

Questions:

What is the difference between short-term and long-term bonds?
Why do investors consider the inverted yield curve to be a potential sign of a recession?

Federal Reserve, Money Supply, Stock Market, Bonds, Inverted Yield Curve, Economics

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 19: Securities Markets, Chapter 20: Money and Financial Institutions

[VIDEO] Low Inflation Haunts the Fed: Here’s Why

June 20, 2019

NickelsMcHughMcHugh

In recent months, officials at the Federal Reserve have debated whether or not the institution should do anything to combat rising inflation. This video explains the basics about inflation and what the Fed could potentially do about it.

Questions:

What are some of the potential causes of inflation?
What is the Federal Reserve’s role in managing inflation?

Economics, Federal Reserve, Money Supply, Inflation

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 20: Money and Financial Institutions

[VIDEO] How the Federal Reserve Works

June 23, 2017

NickelsMcHughMcHugh

When the economy was on the verge of collapse due to the 2008 financial crisis, the Federal Reserve dropped interest rates to zero in an effort to get money moving around again. The economy is not in such dire straits now, of course, so the Fed has once again returned to raising rates gradually. This video quickly reviews how the Fed works and demonstrates the ways that the central bank affects the nation’s money supply.