The Fed has three main mechanisms to affect the economy through the money supply and interest rates: open market operations, the discount rate, and reserve requirments. In this assignment, you will write about how these tools can affect a company's financial status.
For this assignment, refer to the concepts from Chapter 20 titled, The Firm in a National and Global Setting. The textbook is Managerial Economics: Markets and the firm (2nd Ed.). Authored by: William Boyes Publishing information: (2012) Ohio: South-Western Cengage Learning.
The question I need help with is: How does monetary policy affect a company's financial status? Answer this question from both perspectives: a profitability perspective and balance sheet perspective.
This is a short answer question.