Important Note: use the following link for Canada’s consumer price index (inflation rate) : https://www.bankofcanada.ca/rates/indicators/key-variables/key-inflation-indicators-and-the-target-range/
use the following link for Bank of Canada interest Rate Tracker: https://www.bankofcanada.ca/core-functions/monetary-policy/key-interest-rate/
Assignment #1 – What Interest Rate Should I Recommend for my Client?
In Topic 2.1 we saw how short-term interest rates are determined through the Bank of Canada. Then, in Topic 2.4, we learned how inflation impacts interest rates. Finally, in Topic 2.7, we observed how the Bank of Canada’s monetary policy affects interest rates.
With that knowledge, you are now better equipped to look ahead to see what impact that the information you leaned in those three objectives will have upon an important decision that one of your clients, will need to make:
What type of interest rate and what level of interest rate do I help my client choose when the details of a mortgage have to be completed?
Length: Typically, about 3 pages, with graphs and charts included.
Style: Essay or point-form (you decide).
Resources That You Will Need
First, for some historical information：
Click on the link and save or print the chart.
Click on the link and enter information from the same period as the inflation rate.
When you arrive at this website, look at Section 1: “Specific Date or Range”.
o Your Start Date should be entered as: 2010 – 01- 01 (January 1, 2010)
o Your End Date should be entered as: 2012 – 02 – 01 (February 1, 2012)
Look under the heading: “Monetary Policy and LVIS Statistics” and, on the line entitled “Bank Rate” click on the box that is numbered: V122530, under the “Monthly” column. Then scroll down along the left side margin and click on to the box entitled: “Submit”. Print off or save the pages.
Next, you will need to visit the following website for current information: http://www.tdcanadatrust.com/products-services/banking/mortgages/mortgage-rates.jsp
Reflecting on the learning material that you have read, about the nature of interest rates, inflation, plus information that you have no doubt seen in the media over the last nine months proceed to answer the following questions. Submit your answers in a Word document to the Assignments area of your course.
Question 1 (5 marks)
Tell us what is likely, in your opinion, going to happen with the direction of short-term interest rates in the immediate future (the next 3 months). Will they fall, stay where they are, or rise? Give us your reasons for the opinion that you developed.
You have the freedom to use information from sources that you research and obtain from the financial media, information from news and business journals, and also from web-based information from recognized sources (blogs do not count as “recognized sources”, no matter whose blog it is).
References to material that you used to answer any question must be included at the end of each answer so we can determine where you sourced your material.
To earn a mark, you will need to provide a piece of information that will help to support your opinion. For example, if your answer is structured like this:
“In my opinion, interest rates should, for the next 90 days, remain at current levels because of the following three reasons:
then you could expect to earn three marks, if each reason has adequate supporting information. Linking your response to information provided in Topics 2.1, 2.4, and 2.7 can be of value to you.
You should base your opinion upon factual observations, not a “gut feel”. Having said that, economists are known for giving a response to a question, then ending their response with: “…on the other hand” and then providing another alternative response that is often based on their “gut feel” or some internal voice speaking to them from experience. You have permission to do that, but only after you have given your fact-based opinion.
Question 2 (10 marks)
Using information that helped you to form the opinion expressed in your response to Question 1, what would you suggest to a client who requires mortgage financing in the amount of $350,000? Should they stay “open” and let their mortgage “float” with changes in interest rates by using a variable rate mortgage, should they “lock-in” and fix the interest rate, term, and amount, or are there other alternatives that you might recommend?
To earn a mark, you will need to provide a piece of information that will support your recommendation. Linking your response to information provided in Topics 2.1, 2.4, and 2.7 can be of value to you in this question as well.
You will also be eligible to earn marks if you use the mortgage calculator at the bank’s website to create examples, and build arguments, for open, closed, fixed, or floating interest rates.
Why Choose Us
At Myhomeworkwriters.com, we always aim at 100% customer satisfaction. As such, we never compromise o the quality of our homework services. Our homework helpers ensure that they craft each paper carefully to match the requirements of the instruction form.
Professional Academic Writers
With Myhomeworkwriters.com, every student is guaranteed high-quality, professionally written papers. We ensure that we hire individuals with high academic qualifications who can maintain our quality policy. These writers undergo further training to sharpen their writing skills, making them more competent in writing academic papers.
Our company maintains a fair pricing system for all academic writing services to ensure affordability. Our pricing system generates quotations based on the properties of individual papers.
My Homework Writers guarantees all students of swift delivery of papers. We understand that time is an essential factor in the academic world. Therefore, we ensure that we deliver the paper on or before the agreed date to give students ample time for reviewing.
Myhomeworkwriters.com maintains a zero-plagiarism policy in all papers. As such, My Homework Writers professional academic writers ensure that they use the students’ instructions to deliver plagiarism-free papers. We are very keen on avoiding any chance of similarities with previous papers.
Customer Support 24/7
Our customer support works around the clock to provide students with assistance or guidance at any time of the day. Students can always communicate with us through our live chat system or our email and receive instant responses. Feel free to contact us via the Chat window or support email: firstname.lastname@example.org.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
Our writers complete papers strictly according to your instructions and needs, no matter what university, college, or high school you study in.
Our Homework Writing Services
My Homework Writers holds a reputation for being a platform that provides high-quality homework writing services. All you need to do is provide us with all the necessary requirements of the paper and wait for quality results.
At My Homework Writers, we have highly qualified academic gurus who will offer great assistance towards completing your essays. Our homework writing service providers are well-versed with all the aspects of developing high-quality and relevant essays.
Admission and Business Papers
With Myhomeworkwriters.com, we will help you secure a position at your desired institution. Our essay writing services include the crafting of admissions papers. We will still help you climb your career ladder by helping you write the official papers that will help you secure a job. We will guide you on how to write an outstanding portfolio or resume.
Editing and Proofreading
Myhomeworkwriters.com has a professional editorial team that will help you organize your paper, paraphrase it, and eliminate any possible mistakes. Also, we will help you check on plagiarism to ensure that your final paper posses quality and originality.
My Homework Writers harbors professional academic writers from diverse academic disciplines. As such, we can develop homework writing services in all academic areas. The simplicity or complexity of the paper does not affect the quality of homework writing services.