Understanding Interest Rates and Economic Impacts

What is the main reason President Trump wants the Federal Reserve to cut interest rates?

• To strengthen the US dollar

• To increase government spending

• To reduce the national debt interest payments

• To decrease inflation

What historical event is referenced to explain the potential risks of cutting interest rates too much?

• The Great Depression

• The 1970s oil crisis

• The 2008 financial crisis

• The dot-com bubble

How might a small cut in interest rates affect credit card interest?

• It will significantly increase

• It will remain unchanged

• It will significantly decrease

• It will slightly decrease

What is a potential downside for savers if interest rates are cut?

• Lower returns on savings accounts

• Higher taxes on savings

• More stringent withdrawal limits

• Increased bank fees

Why might investors demand higher returns on bonds if the US borrows too much?

• Due to concerns about repayment ability

• To offset currency devaluation

• To encourage more borrowing

• To compensate for inflation

What financial strategy is suggested for those with high-yield savings accounts?

• Switch to a checking account

• Withdraw all savings

• Lock in a good CD rate

• Invest in stocks

How might big rate cuts affect the buying power of social security checks?

• Double the buying power

• Increase buying power

• Decrease buying power

• Have no effect

What is one reason food prices might increase due to immigration policies?

• Higher import taxes

• Increased labor costs

• More food exports

• Decreased demand

What should individuals do to prepare for potential changes in interest rates?

• Close all bank accounts

• Invest in high-risk stocks

• Review savings and borrowing options

• Ignore financial news

What is the overall advice given to viewers regarding financial decisions?

• Ignore economic changes

• Invest heavily in real estate

• Stay informed and make calculated choices

• Panic and make quick decisions