Courses Infomation

Investment Banking – Demystifying Fed’s Monetary Policy

**More information:

Description

Understanding how a Central Bank’s Monetary Policy is determined and implemented is crucial for trading financial markets. The same principles you learn here can be applied to any country’s monetary policy.

Financial and economic analysts are constantly trying to predict the Federal Reserve Bank’s next move. In order to understand the Federal Reserve Bank’s Monetary Policy we build on multiple relationships, between – banking assets, liabilities; the fund market; money measures and multipliers; Federal Reserve Bank’s objectives and tools; financial markets and more.

Understanding how the Fed determines and implements its monetary policy is not a simple task since it requires an understanding of multiple aspects of the financial and monetary system. In this course we build these relationships right from the basics.

In order to understand basic fundamentals to form relationships between money, reserves and policy goals we study –

Banking fundamentals – fractional reserve banking, banking reserves, ROE
The market for the supply and demand of funds (The Financial Account of the US)
Monetary measures
Cash, money and reserve multipliers
Monetary impact on interest rates, exchange rates
The functioning of the Federal Reserve Bank
Relationship between the US Treasury and the Federal Reserve Bank
Monetary policy implementation tools -OMOs, Reserve ratios, Discount Window etc,
The Fed Funds Market, Fed Funds Rate, Discount Rate
The steps taken by the Fed to implement the monetary policy

and much more…

Take the free previews lessons and hope to see you soon.

Thank you

What is forex?

Quite simply, it’s the global market that allows one to trade two currencies against each other.

If you think one currency will be stronger versus the other, and you end up correct, then you can make a profit.

If you’ve ever traveled to another country, you usually had to find a currency exchange booth at the airport, and then exchange the money you have in your wallet into the currency of the country you are visiting.

Foreign Exchange
You go up to the counter and notice a screen displaying different exchange rates for different currencies.

An exchange rate is the relative price of two currencies from two different countries.

You find “Japanese yen” and think to yourself, “WOW! My one dollar is worth 100 yen?! And I have ten dollars! I’m going to be rich!!!”
When you do this, you’ve essentially participated in the forex market!

You’ve exchanged one currency for another.

Or in forex trading terms, assuming you’re an American visiting Japan, you’ve sold dollars and bought yen.

Currency Exchange

Before you fly back home, you stop by the currency exchange booth to exchange the yen that you miraculously have left over (Tokyo is expensive!) and notice the exchange rates have changed.

It’s these changes in the exchange rates that allow you to make money in the foreign exchange market.

Salepage : Investment Banking – Demystifying Fed’s Monetary Policy