With the market dropping, the economy softening and prices spiking, it’s an unsettling time for most Americans. Here are some answers to key questions consumers face:

Q: I’ve already decided I need to adjust my 401(k) holdings in light of the stock market turmoil. Any advice?

A: “Don’t commit large sums of money as a one-time investment into the market and don’t liquidate at one time out of the market,” said Ellen Rinaldi, principal and head of Vanguard’s Investment Counseling & Research group. Try to move no more than 10 to 15 percent of your holdings at one time, she said. That gives you time to think about your decision.

Will my credit cards and other interest rates fall after today’s action by the Fed?

Yes. Cutting the target for the federal funds rate to 3.5 percent means that the prime rate will fall by an equal amount, to 6.5 percent. Since most Americans have variable-rate credit cards that are tied to the prime rate, interest rates on those cards will drop in the coming weeks along with interest rates on home equity lines of credit.

What about my fixed-rate mortgage?

The Fed’s action doesn’t affect existing fixed-rate mortgages. The interest rates on new fixed-rate mortgages generally are tied to inflation and the yield on long-term bonds, and both of those reflect conditions in the general economy. Consumer inflation last year was 4.1 percent – the highest in 17 years – and the economy faces the threat of recession, suggesting that fixed mortgage rates may rise rather than fall.

What advice do you have for investors who aren’t afraid to stay in the market?

Drew Tignanelli, the president of The Financial Consulate of Lutherville, Md., advises wealthy investors with considerable cash. Among that group, shrewd investors are considering buying commodity stocks, such as oil, gold, copper and agriculture. He also suggests that fast-growing Asian markets can outpace U.S. inflation. Consider mutual funds that invest in China, Korea, Taiwan, Hong Kong and Japan, Tignanelli said. Technology stocks, which probably will lead the way when a recovery occurs, also should be considered. Tignanelli said most technology companies had little, if any, debt and had lots of cash on their balance sheets. “In a credit crunch and in an inflationary environment, cash is king,” Tignanelli said.

Are other people as concerned about the economy as I am?

Definitely. A monthly survey of 15,000 consumers conducted by Discover Financial Services found that only 27 percent rated the nation’s economic conditions as good or excellent, a new low for the survey. Consumers who rated the economy as poor rose to 36 percent, a new survey high. Those who planned to spend less in January reached 24 percent, compared with 11 percent in December, the survey found. More people planned to cut discretionary personal spending, household improvement expenses and major personal expenses in January. Investing and saving were the only areas to which consumers planned to contribute more money.