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Why does a higher interest rate attract foreign investment?

A higher interest rate attracts foreign investment because it offers the potential for greater returns on investments compared to lower interest rate environments. Foreign investors are drawn to higher interest rates as they can earn more money on their investments, making it a more attractive option for them.


How will an increase in interest rates impact the quantity of loanable funds supplied?

An increase in interest rates will likely lead to an increase in the quantity of loanable funds supplied. This is because higher interest rates make it more attractive for lenders to offer loans, as they can earn more money from the interest charged on those loans. As a result, lenders may be more willing to supply funds for borrowing, leading to an increase in the overall quantity of loanable funds available in the market.


How is the quantity of funds supplied in the loanable funds market related to the interest rate?

In the loanable funds market, the quantity of funds supplied is directly related to the interest rate. When the interest rate is higher, more funds are supplied by lenders because they can earn more on their investments. Conversely, when the interest rate is lower, less funds are supplied as lenders seek higher returns elsewhere.


Do demand deposits earn interest?

Yes


What are series ee bonds worth?

Series EE bonds are U.S. government savings bonds that are sold at face value and earn interest over time. The interest rate is fixed and is typically compounded semiannually. After 20 years, they reach maturity and can be redeemed for their full face value, which may be significantly higher than the initial purchase price, depending on the interest accrued. Additionally, they can earn interest for up to 30 years before they must be cashed in.

Related Questions

Will you earn a higher interest rate with a variable annuity than with a fixed annuity?

Yes, you do earn a higher interest rate with a variable annuity than with a fixed annuity. It depends on what kind of interest rate you have at the moment.


How much interest would you earn on 200000?

The amount of interest you would earn on $200,000 depends on the interest rate and the time period for which the money is invested or saved. For example, at a 3% annual interest rate, you would earn $6,000 in one year. If the interest is compounded, the total interest could be higher over time. To calculate the exact amount, you would need to specify the interest rate and duration.


How do you use earn in a sentence?

I used to be earning a much higher interest rate in my savings account


Why does a higher interest rate attract foreign investment?

A higher interest rate attracts foreign investment because it offers the potential for greater returns on investments compared to lower interest rate environments. Foreign investors are drawn to higher interest rates as they can earn more money on their investments, making it a more attractive option for them.


Is it better to have a higher or lower interest rate when considering financial investments?

In general, it is better to have a higher interest rate when considering financial investments. A higher interest rate means that you can earn more money on your investments over time. This can help your investments grow faster and provide you with greater returns.


Do you earn interest on a current account?

No, you typically do not earn interest on a current account.


How much interest would you make if you had 3.5 million pounds in the bank?

The amount of interest you would earn on £3.5 million depends on the interest rate offered by the bank. For example, at a 1% annual interest rate, you would earn £35,000 in a year. If the rate were higher, say 2%, you would earn £70,000 annually. Always consider that interest rates can vary based on the type of account and prevailing economic conditions.


How much interest do you earn on 6 billion pounds?

The interest earned on £6 billion depends on the interest rate and the type of account or investment. For example, if you have a savings account with an interest rate of 1% per year, you would earn £60 million in interest annually. Alternatively, if invested in a higher-yield asset with a 5% return, you would earn £300 million per year. The specific interest earned can vary significantly based on these factors.


How much interest do you get in a week with 1000 dollars in the bank?

The interest you earn in a week on $1,000 in the bank depends on the interest rate offered by your bank. For example, if your bank offers an annual interest rate of 1%, you would earn approximately $0.19 in a week. However, if the rate is higher, say 5%, you could earn about $1.00 in the same period. Always check with your bank for the exact rate and compounding frequency.


Which of these people is most likely to earn a higher wage?

a white person 30 to 59 years of age


How much interest can one earn on 500000?

The interest earned on $500,000 depends on the interest rate and the type of account or investment. For example, at a 2% annual interest rate, one could earn about $10,000 in a year. In contrast, a higher interest rate, such as 5%, would yield $25,000 annually. Additionally, the method of compounding (monthly, annually, etc.) can also affect the total interest earned.


How much interest does one billion dollars earn a day?

The interest earned on one billion dollars in a day depends on the interest rate applied. For instance, at an annual interest rate of 1%, one billion dollars would earn approximately $27,397 per day. At a higher rate of 5%, it would earn around $136,986 daily. Therefore, the exact amount varies based on the specific interest rate and the type of account or investment.