How the Fed Controls the Market
No single institution moves markets more than a central bank. This module covers what a central bank actually controls — using both India's RBI and the U.S. Federal Reserve as examples — and why a single interest-rate decision ripples through every asset in this course.
5 chapters · about 23 minutes
- 6.1How Central Banks Work: The Cost of Renting Money5 min
Riya has twice been told "rates went up" and twice failed to ask who raised them. Time to find out.
- 6.2Why Do Interest Rate Hikes Crash the Stock Market?5 min
Aman's bakery has no debt at all. The RBI raised rates and it fell 4% anyway. Why should it care?
- 6.3Why Do Rate Cuts Make Stocks Go Up? (And When They Don't)4 min
The first cut sent the market up. The second, larger one sent it down. Same direction, opposite reaction — why?
- 6.4What Is an Inverted Yield Curve? The Upside-Down Warning Sign4 min
Someone is accepting less interest to lend for ten years than for two. Nobody does that by accident.
- 6.5What Is Quantitative Easing? When Rate Cuts Alone Aren't Enough5 min
Aman asked what happens when the rate reaches zero and the economy is still falling. Riya had no answer.