ECO 316 Determination of Interest Rates

Description

In the financial markets, the determination of interest rates stands as a pivotal force that shapes economic landscapes and influences investment decisions. By exploring different investment funds and events that shape the economy, you can understand the impact of interest rates.

Select a specific investment portfolio and identify one recent event or economic situation where changes in the demand and supply for loanable funds influenced interest rates. Select one specific investment fund from those listed on. For more information about the investment, select the hyperlink next to the fund’s name. https://www.morningstar.com/funds/best-index-funds

In your paper,

• Discuss the types of assets (e.g., stocks, bonds, real estate) included in the portfolio you chose and the rationale behind the allocation percentages.
• Explain the specific factors that led to shifts in demand and supply in the event or scenario you chose.
• Analyze the consequences of the selected event or scenario on the investment portfolio and on the broader economy. [Hint: how did the event or scenario change the investment fund’s prices and what impact did the event had on the broader economy?]
• Examine the behavior of bond prices during this event or scenario and the underlying factors driving these changes.
• Discuss strategies that bond investors may employ to navigate shifts in interest rates.

The Determination of Interest Rates paper,

• must be 3 to 5 double-spaced pages in length (not including title and references pages) and formatted according to APA Style

must include a separate title page with the following in title case:

• title of paper in bold font
• Space should appear between the title and the rest of the information on the title page.
• student’s name
• name of institution (The University of Arizona Global Campus)
• course name and number
• instructor’s name
• due date
• must include an introduction and conclusion paragraph. Your introduction paragraph needs to end with a clear thesis statement that indicates the purpose of your paper.
• must use at least three scholarly, peer-reviewed, or credible sources in addition to the course text.