What are the primary factors in regard to Interest Rates and their determination.© BrainMass Inc. brainmass.com March 4, 2021, 5:52 pm ad1c9bdddf
Primary factors in regard to Interest Rates and their Determination are:
<br>1. Supply And Demand
<br>Interest rate levels are a factor of the supply and demand of credit: an increase in the demand for credit will raise interest rates, while a decrease in the demand for credit will decrease them. Conversely, an increase in the supply of credit will reduce interest rates while a decrease in the supply of credit will increase them. The supply of credit is increased by an ...