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Higher interest rates mean that the demand for cars have increased, due to an increase in consumer demand. Lower interest rates mean that there is a lower demand and the FOMC is lowering the rates to increase consumer demand. Lower rates, however could also increase the demand for cars. This is why the Feds have to higher the interest rates, to ensure that the supply and demand are at an equilibrium point.
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How did high interest rates affect savings and loans S and Ls in the 1980s?
S&L's were affected because interest rates increased. When the interest rates increased, loans were not being approved thusly becoming insolvent. This is what also caused the Ponzi scheme.
Why to invest in wipro technologies?
it is a mid cap stock .......also IT industry is not affected by inflation and interest rates directly........so wipro and hcl are a good option
What Bank pays the highest interest rates?
Bank of America offers the highest CD rates in the industry.
What bank pays the highest cd interest rates?
Bank of America offers the highest CD rates in the industry.
A sharp rise in interest rates can provoke a financial crisis?
Yes, a sharp rise in interest rates can be a disaster because many people will be affected. People with adjustable mortgages will see their rates increase tremendously.
How do you hedge against declining interest rate using future contracts?
The only way to hedge against declining interest rates is to lock in interest rates while they are high. While stocks and mutual funds vary constantly, CDs and annuities lock in an interest rate at the time of purchase, so they are not affected by declining interest rates in the future.
How does someone save interest rates?
Someone will save interest rates by having good credit, by not being late on bills, by not having any charge off's in one's credit history and by shopping for the best interest rates.
What types of incentives are effective in attracting customers to buy the automotive industry's products?
Low interest rates
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
What is the definition of fixed interest rates?
An interest rate that remains constant throughout the agreed term. If changes in the goverment base rate occur where commercial rates rise or fall you wont be affected.
What role do interest rates lay in mounting consumer debt?
High interest rates play a role in mounting consumer debt. When interest rates are high, more of a person's payment is being applied to interest versus principal. Because of this, it takes the consumer longer to payoff their debt.
What has the author C M Jenson written?
C. M. Jenson has written: 'How have interest rates affected small businesses?'
