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How does the interest rate that banks charge affect the value of the American Dollar?
Wiki User
∙ 15y ago
The interest rate determines how much foreign countries want to invest in the American dollar. If the interest rate is high, foreign firms will want to invest more in America because a high interest rate means a higher rate of return for investment in America. If the interest rate is low, foreign firms will not want to invest in America because their rate of return will be lower. If foreign firms will want to invest more in America it will need to convert its money into the dollar, thus the demand for dollars will increase. By increasing the demand for the dollar it will appreciate and grow stronger relative to other currencies, making it more expensive to buy. By making the dollar stronger imports will increase and exports will decrease. This is because the American dollar will buy more and therefore it will be cheaper for the American people to buy foreign currency or goods. It will decrease exports because it will be more expensive for holders of foreign currency to buy American goods.
Wiki User
∙ 15y ago
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How does the national interest rate affect consumers?
Every bit of Financial Charge or increase therein would ultimately affect the end user of consumer good on which such is aimed at...
Significance of interest rates?
Interest rates are on opportunity cost of holding cash. Basically, if you have cash in your wallet you aren't earning interest in a bank account. Interest rates affect the cost of borrowing money (eg. credit cards, mortgages, personal loans) and affect the interest rate on your savings account. The nominal or base rate is set by the central bank in most countries. This basically gives an indicator to banks about what their interest rates should be set at, so at the moment in the US and UK interest rates are 1% or lower but that doesn't mean interest rates on new mortgages will be at this level because the banks charge extra to make a profit. Hope this helps!
Who regulates interest rates?
To a certain extent the banks do. But the Fed, which lends money to banks, can have an impact on it depending on what interest they charge the banks.
How is simple interest useful in real life?
When you put money in the bank , they don't produce more , the use simple interest to charge you fees
The interest rate banks charge each other on overnight loans?
Federal Funds Rate
How does bankruptcy affect interest rates on loans?
Some lenders may find you a higher risk and thus charge you a higher interest rate.
How does the national interest rate affect consumers?
Every bit of Financial Charge or increase therein would ultimately affect the end user of consumer good on which such is aimed at...
Is the annual interest rate the same as simple interest?
Usually no. Most institutions charge (and pay) compound interest, NOT simple interest.Usually no. Most institutions charge (and pay) compound interest, NOT simple interest.Usually no. Most institutions charge (and pay) compound interest, NOT simple interest.Usually no. Most institutions charge (and pay) compound interest, NOT simple interest.
Can a lender charge a 500 dollar up front fee to lock in an interest rate on a refinance loan?
They can charge a commitment fee or a lock fee, most certainly. Not everyone does it but it depends on the lender, it is not uncommon though.
Payday lenders can charge up to how much interest?
payday lenders can charge up to what interest
How much can payday lenders can charge up to in interest?
payday lenders can charge up to what interest
Can you charge interest on interest in the sate of MA Someone is sending me a bill with an interest charge on it and now theyre charging interest on the interest Is this possible or even legal?
no, its called usury and its illegal
In Canada can you charge interest on interest charges?
yes
When you catch a cab in Jamaica are they going to charge your for your fare in jamaican money or American money?
If you are a Jamaican, you will be charged Jamaican dollars, if you are an American you will be charged American dollar's you will be charged according to the individual drivers preference.
Does American Express charge a fair interest rate on small business credit cards?
Yes, they charge a fair interest rate. It is one of the best cards around, but only if you use it enough. The points and rewards are among the best in the industry but it also has an annual fee you have to pay.
Does the government charge interest on SSI debts?
The Social Security Administration does not charge interest on a Supplemental Security Income overpayment.
Why do finance companies charge such high rates of interest?
If a company has adopted 'Table A', it can charge interest on calls-in-arrears at the rate of
