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Why did many banks go out of business as a result of the panic of 1837?
Interest rates were very high, and caused many banks to shut down due to lack of money.
How does one's economy be affected by interest rates hike or cut?
because when the interest rate goes up means there is a good economy and banks making money. when the interest rate is low banks are lossing money so they out it down to get as many people in to their bank. the consumers are also not spending as much whih is effected by retail sales.
Which banks offer the best savings accounts?
Any bank with decent interest rates is worth looking into, however this largely boils down to personal preference and your ability to check with local banks who may offer higher interest rates and/or different perks than national banks.
What role do banks play in determining credit card interest rates?
The bank that supplies the credit card can determine the interest rate they will charge. Rates can go up and down depending on the borrower.
What is asset demand for money?
Asset demand for money is dependent on interest rates. The money slope goes down if interest rate goes down. In contrast, money slope goes up if interest rate goes up.
How do credit unions compare to banks?
Generally speaking, Credit Unions have lower interest rates on loans and credit cards, and higher interest rates on deposits (Savings, CDs, etc) compared to Banks. On the down side, they are usually small, which means less branches, less ATMs.
How do financial institutions calculate interest rates?
Financial institutions base their interest rates on fluctuation of today's market. If the market is doing well then interest rates are high. If the market is down, interest rates goes down along with it.
What is the relationship between short term interest rates and stock market activity?
The short term interest rates directly affects the amount of liquidity in the economy, when the rates are lowered down , the amount of money the banks need to keep with them is reduced and the same amount is used by the bank to lend further. The industrial activity and sentiment picks up and hence cheers the stock markets up.
How has the current housing crisis affected mortgage rate?
Mortgage rates or the interest rates for home loans are affected by a variety of factors. More often than not, they are influenced by supply and demand. A strong economy results in more borrowing which in turn results in higher interest rates. Conversely, with the softening of an economy, borrowing goes down and so does interest rates. The Federal Reserve can also influence interest rates through raising or lowering the discount rate which is the interest rate banks are charged when they borrow money from the Federal Reserve. Read more http://www.housingnewslive.com/mortgage-rates.php
How beneficial are CD interest rates?
What is beneficial about CD interest rates is that they are constant for the specified period of time. Sometimes interest rates can go up or down but CD interest rates would stay the same.
Can banks legally loan money?
Yes. But you need a good and clean record to be loaned money Beware though that most banks have higher interest rates than other places that lend money as the business. Not all the time though so it may pay to do a Little research in the area that you are in. It can also depend on how much tat you need to borrow, too much and any organisation will turn you down.
Which banks offer a first home mortgage with a low interest rate and a low down payment?
The best way to get the lowest rate is to shop around and see what different banks offer. Normally, smaller banks and credit unions will have better rates than the big national banks.
