FIN 1000 Rasmussen College Mod 1 Open Market Operations Discussion
Question Description
Module 01 Course Project – Recommendation
Part 1: Federal Reserve’s Impact on Interest Rates
- Discuss how the Federal Reserve uses the following tools to impact interest rates and the economy:
- Open market operations
- Discount rate
- Reserve requirements
Part 2: Loan Options
- Research the current mortgage interest rates for a 10-year, 15-year, 20-year, and 30-year loan.
- In Excel, graph the interest rates using years as the X-axis and interest rates as the Y-axis.
- Using the graph, describe the following:
- Type of yield curve presented in the graph
- Relationship between interest rates and number of years to maturity
- Impact that risk and inflation has on the interest rates as the maturity date is lengthened
Part 3: Recommendation
- Make a recommendation to Ms. Jacobsen on what mortgage loan to take (10-year, 15-year, 20-year, or 30-year).
- Justify your recommendation.
Project Overview
For your course project, you will assume the role of a financialadvisor working for a wide variety of customers. The tasks you performin this role will help you do the following:
- Illustrate the functions of the banking system.
- Demonstrate your understanding of the time value of money
- Describe the best use of savings and investment
- Identify how firms raise funds through the use of debt and equity.
- Apply financial analysis to a fictitious firm.
- Explain the relationship between federal policies and economic health for the country.
Due Date
Your final project is due in Module 05. There will be individual assignments along the way. The module they are due is noted in the time line below.
Time Line
Module |
Assignment |
01 |
Recommendation |
02 |
Time Value of Money Presentation |
03 |
Savings and Investment Presentation |
04 |
Funding Proposal |
05 |
Ratio Analysis and Recommendation |
Requirements
The course project is designed to challenge your ability to applyvarious financial concepts to hypothetical situations. In workingthrough this project, you are expected to use Excel templates to solvevarious financial problems, produce PowerPoint presentations explainingfinancial concepts, and use the Excel graph function to present visualaids for understanding some concepts.
You should use APA formatting for the written portions of theassignments, including appropriate in-text citations, and adhere toother requirements specified in the directions.
Evaluation
Each assignment leading up to the final assignment is evaluated andgraded independently. Your instructor will provide specific gradingcriteria for each step of the project prior to its due date.
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