Sedita M W4
Complexity
Martina Sedita
Strayer University
FIN 100: Principle of Finance
Finical markets in today’s world are interlinked and complicated. These complicated interlinked economic markets have a great impact on people’s everyday lives. The Federal Reserve commonly known as the FED as well as interest and exchange rates has a great effect the global economy. The finical market in the United States is a complex interlinked market that consists of three major sections; agriculture, industry and services. According to the CIA World Fact book the U.S. economy and gross domestic product or the monetary value of a nation’s goods and services depends largely on services (79.7%). (www.cia.gov). This service based economy effects U.S. based markets which in turn affects many aspects of people’s lives. When the U.S. market slows down there is less confidence in the finical markets. This in turn causes a change in business’s operations. This change is usually represented with reactions of business’s becoming more conservative in their fiscal spending. When organizations tighten their fiscal spending as a reaction to a slowing market then they do not tend to spend as much money or invest. This reaction in turn causes individuals who see this and in turn tend to spend less as well. This conservative economic stance leads to a less active market that slows down the economy. This cycle is observed and managed by the U.S. Federal Reserve. The Federal Reserve or the FED has a large impact on the economy in both its day to day operations as well as long term effects. The FED manages the economic atmosphere within the United States and tries to promote growth. The FED accomplishes this by imposing regulations on market trading as well as how banks operate. The FED is headed by a committee which is chaired by Mr. Ben Bernake. Mr. Bernake as well as the other board members have many tools that help them to manage the economy
Martina Sedita
Strayer University
FIN 100: Principle of Finance
Finical markets in today’s world are interlinked and complicated. These complicated interlinked economic markets have a great impact on people’s everyday lives. The Federal Reserve commonly known as the FED as well as interest and exchange rates has a great effect the global economy. The finical market in the United States is a complex interlinked market that consists of three major sections; agriculture, industry and services. According to the CIA World Fact book the U.S. economy and gross domestic product or the monetary value of a nation’s goods and services depends largely on services (79.7%). (www.cia.gov). This service based economy effects U.S. based markets which in turn affects many aspects of people’s lives. When the U.S. market slows down there is less confidence in the finical markets. This in turn causes a change in business’s operations. This change is usually represented with reactions of business’s becoming more conservative in their fiscal spending. When organizations tighten their fiscal spending as a reaction to a slowing market then they do not tend to spend as much money or invest. This reaction in turn causes individuals who see this and in turn tend to spend less as well. This conservative economic stance leads to a less active market that slows down the economy. This cycle is observed and managed by the U.S. Federal Reserve. The Federal Reserve or the FED has a large impact on the economy in both its day to day operations as well as long term effects. The FED manages the economic atmosphere within the United States and tries to promote growth. The FED accomplishes this by imposing regulations on market trading as well as how banks operate. The FED is headed by a committee which is chaired by Mr. Ben Bernake. Mr. Bernake as well as the other board members have many tools that help them to manage the economy
Cited: http://www.federalreserve.gov/, accessed 27 July 2013 http://www.xe.com/, accessed 27 July 2013 https://www.cia.gov/library/publications/the-world-factbook/geos/us.html, accessed 27 July 2013