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businesses will be more likely to expand their facilities
What else can I help you with?
If there is an excess supply of money?
deposit more into interest-bearing accounts, and the interest rate will fall.
If there is a fall in the interest rate?
businesses will be more likely to expand their facilities
What happens if there is a fall in the interest rate?
businesses will be more likely to expand their facilities
What does the nominal interest rate mean?
A nominal interest rate is an interest rate that does not factor in the rate on inflation. Nominal interest rate could also refer to an interest rate that does not adjust for the full effect of compounding.
What is the opportunity cost to a fully employed economy of increasing capital investment?
A fall in consumption
If there is an excess supply of money?
deposit more into interest-bearing accounts, and the interest rate will fall.
What are the Reasons for fall in money value?
Changes in fiscal policy Inflation rate Interest rate
If there is a fall in the interest rate?
businesses will be more likely to expand their facilities
What happens if there is a fall in the interest rate?
businesses will be more likely to expand their facilities
What is the definition of fixed interest rates?
An interest rate that remains constant throughout the agreed term. If changes in the goverment base rate occur where commercial rates rise or fall you wont be affected.
Why does your interest rate changes once in a while why does this happen?
The interest rates on savings tend to move in line with interest rates in the economy as a whole. So, if the Bank of England cuts its base rate, the interest rate on your savings will probably fall, too. But sometimes banks and building societies cut rates by much more than the fall in the base rate, or cut their rates when the base rate has not changed at all. This is because they also set interest rates on particular accounts to attract customers and cut them once they have enough customers.
What happens to bonds when interest rates fall?
When interest rates fall, the value of existing bonds increases. This is because the fixed interest rate on the bond becomes more attractive compared to new bonds issued at lower rates.
Bonds usually sell at a premium when?
when interest rates in the general market fall. This makes the interest rate on the bond relatively more attractive.
Is floor rate?
A floor rate is the minimum interest rate that can be charged on a loan or investment, below which the rate cannot fall. It is typically used in financial products like adjustable-rate mortgages or bonds to protect lenders or investors from declining interest rates. By establishing a floor rate, it ensures a certain level of return or revenue, even in low-interest environments.
How does subordination affect the interest rate on a bond?
Subordination affects the interest rate on a bond because it is unsecured and has lesser priority than that of an additional debt claim on the same asset. It has higher interest rate required to compensate for the higher risk. If interest rate has been increased the price of the bond will fall. If the price of the bond falls, the yield that can be earned will increase.
How can I calculate the monthly interest rate from an annual interest rate?
To calculate the monthly interest rate from an annual interest rate, divide the annual rate by 12. This will give you the monthly interest rate.
How to convert a monthly interest rate to an annual interest rate?
To convert a monthly interest rate to an annual interest rate, you can multiply the monthly rate by 12. This will give you the annual interest rate.
