Bafn205 financial instruments - impact of interest rates on


Instructions

You research essay will need to have the following structure and framework:

1. Introduction.

2. Body of your essay-various paragraphs to construct your arguments and develop analytical analysis.

3. Conclusion.

4. Harvard Referencing System.

The assignment has to be typed, double-spacing.

Assessment Task

Impact of Interest Rates on the Australian Economy Length: Maximum 3000 words, excluding appendices.

This is a group assignment in the form of a research report or essay. The following is the essential question-critically analyze and discuss the following statement:

"Critically evaluate and discuss the justification of an impact of an increase of official interest rate by the US Federal Reserve on the Australian economy. Include a discussion on the impact of an increase of official interest rate on the Australian economy."

Key Discussion Issues for both USA and Australia:
- Strength of economies
- Inflation
- Monetary policies
- Money Markets
- Exchange rates
- Shares/Stock Markets
- What is the link between the FED and the RBA on interest rate changes
- Labour markets
- Exports and Imports

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