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A potential investor might be surprised to find that banks are offering higher CD interest rates in this currently troubled economy. With money issues on the rise, many potential investors are hesitant to ""lock away"" money for 2,5,or even 10 years. Because of this, financial institutions must compete for CD purchases, resulting in higher interest rates to attract new investors.
What else can I help you with?
What is the significance of interest Rates for an economy?
the significance is that the government profit from specific interest rates in an economy
When a bondholder loses money because interest rates in the economy increase it is an example of what kind of risk?
interest rate
Consumers should be concerned about high interest rates because high interest rates?
High interest rates increase the cost of taking out a loan, making credit purchases more expensive.
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
Why might rising interest rates depress stock prices?
rising interest rates usually means the economy has less
What is the significance of interest Rates for an economy?
the significance is that the government profit from specific interest rates in an economy
When a bondholder loses money because interest rates in the economy increase it is an example of what kind of risk?
interest rate
How interest rate affect the sa economy?
how interest rates affect the sa economy
Consumers should be concerned about high interest rates because high interest rates?
High interest rates increase the cost of taking out a loan, making credit purchases more expensive.
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
Why might rising interest rates depress stock prices?
rising interest rates usually means the economy has less
What are fixed mortgages and what do they do?
You can get a loan with a fixed interest rate or a variable interest rate. The interest rate is the extra amount of money you have to pay back for taking out the loan. A fixed rate doesn't change the entire time you have the loan--even if the economy fails and everybody else has to get higher interest rates. However, the rates are usually set up higher and you end up paying more in the long run if you have a lengthy loan. If the economy does poorly, you might save money in a fixed rate because variable rates will spike.
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.
How does the money supply affect interest rates?
The money supply affects interest rates by influencing the supply and demand for money in the economy. When the money supply increases, there is more money available for lending, which can lower interest rates. Conversely, a decrease in the money supply can lead to higher interest rates as there is less money available for borrowing. Overall, changes in the money supply can impact interest rates by affecting the cost of borrowing and lending money in the economy.
What makes mortgage interest rates change?
Many factors determine mortgage interest rates. Most of it will depend on the economy and the glut or scarcity of houses that are available.
