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What is the significance of interest Rates for an economy?
the significance is that the government profit from specific interest rates in an economy
How interest rate affect the sa economy?
how interest rates affect the sa economy
What is different about interest rates or price credit from other prices in the economy?
what is different about interest rates, or price of credit, from other prices in the economy
Which of the following terms best describes the process by which the government controls interest rates and the money supply in order to influence the economy?
monetary policy
Why might rising interest rates depress stock prices?
rising interest rates usually means the economy has less
How can interest rates influence AD?
reduce interest rates to increase incentive to buy/spend and hence increasing AD
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 does Markets affects residential properties?
Factors That Influence Residential properties : 1.Demographics 2.Interest Rates 3.The Economy 4.Government Policies/Subsidies
What is credit deployment-?
Various measures have been taken by RBI to deploy credit to various sectors of the economy. for this a certain percentage of bank credit has been earmarked to the priority sector at low interest rates. Low interest rates have been fixed for supply of credit to agriculture and to export sector as well as to other sectors in the priority list.
If the country is in a recession what will the government do to the interest rates to stimulate the economy?
lower
How do changes in interest rates affect money supply?
When the interest rates are high, people would prefer to save than holding money. That means money supply in the economy is decreased. Whereas when the interest rates are low people prefer to hold money and spend, means increased money supply in the economy.
What will happen to Canadian interest rates?
Canadian interest rates may be lowered to encourage people to borrow more money and invest. Low interest rates can foster business activity if an economy is experiencing less productivity.
