Inflation.

Sample Solution

  Inflation is a general increase in prices and a decrease in the purchasing value of money. It is usually measured as a percentage change in the Consumer Price Index (CPI), which is a basket of goods and services that is commonly purchased by households.

Full Answer Section

  Inflation can have a number of effects on the economy. It can lead to a decrease in the value of savings, as the purchasing power of money decreases. It can also lead to an increase in interest rates, as lenders demand a higher return on their investments to compensate for the loss of purchasing power. Inflation can also lead to an increase in unemployment, as businesses may be less likely to hire new workers if the cost of labor is increasing. What is Prime Rate? How Prime Rate effects the overall lending rates? The prime rate is the interest rate that banks charge their most creditworthy customers. It is a benchmark rate that is used to set other interest rates, such as the rates on credit cards, personal loans, and adjustable-rate mortgages. The prime rate is set by the Federal Reserve Bank, and it is typically changed in response to changes in the economy. When the Federal Reserve raises the prime rate, it means that banks are charging more for loans. This can lead to higher interest rates for consumers and businesses, which can slow down economic growth. Answer the following: 1. Explore the website of Federal Reserve Bank and write TWO pages as to what info you found on the website. Explore different tabs. The Federal Reserve Bank website is a great resource for information about the economy, monetary policy, and banking. The website has a number of different tabs, each of which provides different information. Some of the tabs that I found particularly interesting include:

• The Economy: This tab provides information about the current state of the economy, including economic growth, unemployment, and inflation.
• Monetary Policy: This tab provides information about the Federal Reserve's monetary policy, including the interest rates that the Federal Reserve sets.
• Banking: This tab provides information about the banking system, including the different types of banks and how they operate.

I also found the "Publications" tab to be very helpful. This tab provides a list of all of the publications that the Federal Reserve produces, including economic reports, research papers, and speeches. 2. Explore the website of Tradingeconomics.com and write TWO pages as to what info you found on the website. Specially focus on Inflation and Interest Rates. The Tradingeconomics website is a great resource for information about inflation and interest rates. The website provides data on inflation and interest rates for a number of different countries. Some of the information that I found particularly interesting on the Tradingeconomics website includes:

• Inflation: The website provides data on inflation for a number of different countries. This data includes the current inflation rate, as well as historical inflation rates.
• Interest Rates: The website provides data on interest rates for a number of different countries. This data includes the current interest rate, as well as historical interest rates.
• Correlation: The website also provides information on the correlation between inflation and interest rates. This information can be helpful for understanding how changes in inflation can affect interest rates.

I found the Tradingeconomics website to be a very helpful resource for information about inflation and interest rates. The website provides clear and concise data, and it is easy to use.