since the prices continues 2 increase. The poorer become more poor and rich people bcum more rich.Hence it affects the banks n the intrest rate goes high.
Interest rates are simply the price of money. When inflation declines, interest rates typically decline also.
Yes, inflation and increases in interest rates usually go hand-in-hand, though inflation is not the sole cause of an increase in interest rates
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explain how do intrest rates and inflation affect the real estate
Many factors affect the financial market, particularly the stock market. Examples include inflation and deflation, interest rates, foreign markets, and exchange rates.
Interest rates are simply the price of money. When inflation declines, interest rates typically decline also.
Yes, inflation and increases in interest rates usually go hand-in-hand, though inflation is not the sole cause of an increase in interest rates
High rates.However, high interest rates are usually a consequence of high inflation rates and so what matters is not the interest rate but the real interest rate which is the nominal interest rate relative to the inflation rate.Thus a 3% interest rate when inflation is 1% is better that a 5% interest rate when inflation is 4%.
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Banks in India change their interest rate depending on the rates decided by the RBI (Reserve Bank of India). The RBI decides the rates at which banks can borrow money from it as well as the rates at which money deposits need to be accepted. Based on these rates banks change their interest rates accordingly. Usually rates are changed to have an impact on the economy like for ex: to curb inflation, to infuse more liquidity into the market etc.
explain how do intrest rates and inflation affect the real estate
Many factors affect the financial market, particularly the stock market. Examples include inflation and deflation, interest rates, foreign markets, and exchange rates.
high interest rates such as the repo rates and high inflation rate
if an interest rate is high, it is likely that inflation is also high. Generally, one doesn't affect the other so much as measure the other.
no
the government can slow down inflation by reducing bank interest rates.
False