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When a bondholder loses money because interest rates in the economy increase it is an example of what kind of risk?
Wiki User
∙ 10y ago
interest rate
Wiki User
∙ 10y ago
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What would increase interest rates in the economy?
increase in the cetnral bank lending rates to the commercial banks,increase in the borrowing of the government from the local economy(domestic borrwing),high inflationary pressuressustained in the economy,efforts by the central bank to stabilize the exchnge rates of a country in a situation where the countries currency has all of a sudden been depreciated due to foregn trade shocks
Does an increase in government spending increase income?
An increase in government spending helps to stimulate an economy. Because the government is now paying other people to do work, those people are now receiving an income. They can then reinvest in the economy, leading to an overall growth in the nation's economy.
What is the significance of interest Rates for an economy?
the significance is that the government profit from specific interest rates in an economy
Lack of security and its effects to economy?
Privacy activity increase because lack of security and make economy of a country easily being hack
What is Economy Pricing?
it is when you increase the price of goods in your economy
Environmental-protection laws can be bad for the economy because they may do what?
Environmental-protection laws can be bad for the economy because they may increase unemployment.
What would happen to the economy if the Government lowered interest rates?
Governments decreases interest rates so that, when interest rates are lowered, borrowings will be more cheaper, which would encourage investors borrow more money. This would increase investments in an economy, which would thereby increase production, demand for labor and thereby the average salary, which consequently leads to economic growth.
What would increase interest rates in the economy?
increase in the cetnral bank lending rates to the commercial banks,increase in the borrowing of the government from the local economy(domestic borrwing),high inflationary pressuressustained in the economy,efforts by the central bank to stabilize the exchnge rates of a country in a situation where the countries currency has all of a sudden been depreciated due to foregn trade shocks
How interest rate affect the sa economy?
how interest rates affect the sa economy
Does an increase in government spending increase income?
An increase in government spending helps to stimulate an economy. Because the government is now paying other people to do work, those people are now receiving an income. They can then reinvest in the economy, leading to an overall growth in the nation's economy.
How has the primary sector has changed over time?
it has changed because of the increase of the economy
What is the significance of interest Rates for an economy?
the significance is that the government profit from specific interest rates in an economy
Why you need increase in production of power resources of Pakistan?
An increase in production of power resources of Pakistan because the economy is not good for the good economy we have to increase our energy resources. The population is increasing and it is used vital in agricultural. Domestic and industrial sector broadly.
Why is the economy in such bad shape?
Because of interest. If we had zero% interest people wouldn't have stopped paying their mortage and we would be able to afford more things.
Lack of security and its effects to economy?
Privacy activity increase because lack of security and make economy of a country easily being hack
Why were slaves important for the economy?
the slaves were important because it helped the farmers and or owners pay for crops and other good and this helped the economy increase
What is Economy Pricing?
it is when you increase the price of goods in your economy
