FiN350- “Structure of Interest Rates”

From the first e-Activity, create an argument on whether the yield rate or the forward interest rate has the greater impact on interest rates in the U.S. ( Go to the Federal Reserve Bank of San Francisco’s Website to read the article titled “What Moves the Interest Rate Term Structure?” dated November 7, 2011, located at http://www.frbsf.org/publications/economics/letter/2011/el2011-34.html.)

Analyze the current economic forecasts by economists and financial experts, and predict the impact on the interest rate term structure. 

From the second e-Activity, imagine the Federal Reserve Bank did not exist. Speculate how the economy would function without its services. (Watch the YouTube video titled “What does the Federal Reserve Bank do?” (1 min 45 s) dated July 23, 2009, located at http://www.youtube.com/watch?v=zInPquYgp2w . Be prepared to discuss.)

From the third e-Activity, summarize your article’s position (critic or ally), being sure to cite your source, and opine on your agreement or disagreement with the argument presented. Support your response with evidence or an example. (Research the Internet to find an article that criticizes or praises the Federal Reserve Bank’s actions during the Great Recession (2008-2011). Be prepared to discuss.)