What Can Markets Expect From the Federal Reserve?

What Can Markets Expect From the Federal Reserve?

Assessment

Interactive Video

Business

University

Hard

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The video discusses the Federal Reserve's influence on the market, particularly the uncertainty surrounding their 'considerable time' phrase and its impact on interest rates. It also examines the fluctuating oil prices and their effects on the S&P 500, highlighting differing views from Goldman Sachs and Bank of America. Additionally, the video addresses global economic concerns, including supply and demand issues, and their implications for the US market.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main concern regarding the Federal Reserve's 'considerable time' phrase?

It creates uncertainty in the market.

It guarantees a rise in interest rates.

It ensures stability in the global economy.

It might lead to increased inflation.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

According to Goldman Sachs, how does a $10 drop in oil prices affect S&P 500 earnings per share?

It decreases earnings by $2 per share.

It boosts earnings by $2 per share.

It has no effect on earnings.

It increases earnings by $4 per share.

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is Savita Subramanian's view on the impact of oil prices in the 70s on S&P 500 earnings?

It could increase earnings by $3 or $4.

It could trim $3 or $4 off earnings.

It would have no impact on earnings.

It would double the earnings.

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one of the main challenges faced by Wall Street regarding oil prices?

Reducing oil consumption.

Predicting the exact price of oil.

Modeling the net effect of oil price changes.

Finding new oil reserves.

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What factor is contributing to the zigzag pattern in the US market?

Consistent oil supply.

Struggling overseas markets.

High demand for commodities.

Stable overseas markets.