Discussion Post
i. Suppose that the Fed conducted open market purchases and that on Tuesday of last week it lowered the discount rate. What would you say the Fed was trying to do and why?
ii. Since 2008, there has been talk in the real estate industry of either eliminating FNMA and FHLMC as secondary market institutions or merging them. What kind of impact would it have on the industry if either occurred?
Homework: Real Estate
i. Uyou learned about the importance of home-buyer education programs. Pretend you are about to buy your first home. Use the internet to find a local program in your area. Send me the link to the program and come up with 5 questions you would want answered by attending the program.
ii. We just discussed that the Fed's preferred tool of controlling the money supply is open market operations. Explain to me in your own words how the Fed uses open market operations to increase the money supply? How can it be used to decrease the money supply?
iii. Federal deposit insurance is a very important topic for depositors. Explain why you feel the FDIC has raised its limits on the amount of insurance it provides over the years. What impact did that have on customers and banks?
iv. Explain the pros and cons of obtaining a loan from a mortgage company vs a bank/credit union.
v. Investors do not lend money they purchase notes expecting a return called a yield. Explain the difference between price and yield on mortgage loans .
Format your homework according to the following formatting requirements:
i) The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
ii) The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
iii) Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.