Interest rate movements have a direct influence on the market values of debt securities, such as money market securities

[answerhappygod]

Interest rate movements have a direct influence on the market
values of debt securities, such as money market securities, bonds,
and mortgages. Interest rate movements also affect the value of
most financial institutions. They affect the cost of funds to
depository institutions and the interest received on some loans by
financial institutions. a. Wars tend to cause significant reactions
in financial markets. Why might a war in the Middle East place
upward pressure on US interest rates? Why might some investors
expect a war like this to place downward pressure on US interest
rates? b. Explain how interest rate movements influence the prices
of debt securities. c. Assume that Singapore has a very strong
economy, putting upward pressure on both its inflation and interest
rates. Explain how these conditions could put pressure on the value
of the Singapore dollar and determine whether the dollar’s value
will rise or fall.