Monetary Policy

Question

While fiscal policy is voted on by Congress and can easily get caught up in partisan political infighting, monetary policy is supposed to be immune to this type of politics. In fact, it is said that the Federal Reserve is independent. Read these articles about the Federal Reserve and share your opinion. Is the Federal Reserve independent? Can it truly be? Should it be? Why is important or not important for the Fed and monetary policy to be independent? Do you think monetary policy or fiscal policy is more effective and why? When do you think that fiscal policy should be used versus monetary policy?

Question

Directions: Answer the following questions on a separate document. Explain how you reached the answer, or show your work if a mathematical calculation is needed, or both.

A. In your own words, please identify two different stock exchanges in the United States. Describe the similarities and differences between the two stock exchanges. Identify one stock from each of the two stock exchanges.

B. Using the two stocks you identified, determine the free cash flow from 2013 & 2014. What inference can you draw from the companies’ free cash flow?

C. Using the 2016 & 2017 financial statements for both stocks, prepare two financial ratios for each of the following categories: liquidity ratios, asset management ratios, and profitability ratios. You should have a total of six ratios for each stock, per year. What challenges, strengths, or weaknesses do you see? Please be articulate.