Bob Brinker's Marketimer

  Friday November 24, 2017

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NOW YOU KNOW WHAT MAKES INTEREST RATES CHANGE
Learn even more about this topic with the Encyclopedia of Personal Finance™

You should now have a solid understanding of the key factors that determine interest rates. Interest rates are essentially the price of borrowing money. As with any commodity, there is supply and demand of money, which determines its price or interest rate. The Federal Reserve's monetary policy and the aggregate savings rate in the economy determine the supply of money. Businesses, the government, and consumers all demand money. Their demand combines with the supply of money to determine the rate of interest.

Because interest rates are connected to almost all business decisions, it is very important that investors understand how rates are determined and what implications they have in investment decisions. Click here to learn even more about this topic with the Encyclopedia of Personal Finance™




LEARN EVEN MORE WITH THE ENCYCLOPEDIA OF PERSONAL FINANCE. CLICK HERE!

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