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Activity
1.5
Example Assignment |
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The following is an example of how to do a proper economics related news summary as required by Activity 1.5. This news story comes from the financial section of the CNN website. Keep in mind that your citation will vary based on what type of resource (online, magazine, newspaper, etc.) from which your article came. |
| HEADLINE:
Fed Chief Hints at Rate
Cut
SUMMARY: This article reports on the recent remarks that Federal Reserve Chairman Alan Greenspan made concerning a possible reduction of interest rates. Mr. Greenspan is suggesting that a lowering of the interest rate may be imminent in an attempt to offset the current economic setback in Asia and Europe. It is proposed the drop would be approximately a one-quarter to one-half percent reduction. In Mr. Greenspan's opinion, the potential of rising inflation poses a more serious threat to the U.S. economy than global economic slowdown. VOCABULARY: Interest rates - the rate (as a percentage) that banks charge to borrowers in exchange for granting a loan. Typically speaking, lower interest rates spur on consumer spending since loans are cheaper to obtain, while higher interest rates often result in consumers taking out fewer loans thus slowing down their purchases. Federal Reserve - The "central" bank of the United States, the Federal Reserve or commonly referred to as "The Fed", oversees the distribution of money to banks. The Fed is responsible for setting interest rates and controlling the nation's money supply. Inflation - refers to the upward movement of prices of consumer products. Dow Jones Industrial Average - the most commonly used indicator of how 30 of the nations largest corporations fared in the stock market on a given day.
APPLICATION: Keeping informed of movements in the interest rate is very important, especially when it comes to purchasing big ticket items like a car, a home, or even taking out a loan for education. The slightest movement of the interest rate, be it up or down, can greatly affect the amount that you will have to pay each month and over the life of the loan. As a consumer and homeowner, being able to find the lowest interest rates on loans that I have can potentially save me thousands of dollars that I can put to use for other items that I want to purchase or save for.
CITATION: "Fed chief hints
at rate cut." CNNfn (Sept. 12, 1998). |
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