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O Identify decisions made by key organizational stakeholders that are affected by interest rates

o Identify how interest rates affect the cost of operating the business

o Find the current yield curve and interpret the effect of its shape on decision-making within the organization

o Evaluate how changes in interest rates affect the customer demand for the product in the scenario

o Explain how business planning and operations are dependant on monetary variables other than interest rates

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The solution gives how interest rates affect the cost of operating the business etc.

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1. Identify decisions made by key organizational stakeholders that are affected by interest rates

The decisions made by key organizational stakeholders that are affected by interest rates are:
1) Financing decision
This involves raising money and deciding the capital structure of the organization.
2) Marketing decisions
Change interest rates affect the demand and cost for the product. Hence it may lead to change in key marketing decisions such as Pricing, promotion, granting credit to customer.

2. Identify how interest rates affect the cost of operating the business

Interest rate can affect the cost of operating the business in following manner:
1) It can change the cost of funds. For example increase in interest rates can lead to ...

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