ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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high interest rate
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low interest rate
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Either A or B
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None of the above
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Detailed explanation-1: -Low interest rates mean more spending money in consumers’ pockets. That also means they may be willing to make larger purchases and will borrow more, which spurs demand for household goods. This is an added benefit to financial institutions because banks are able to lend more.
Detailed explanation-2: -The lower the interest rate, the more willing people are to borrow money to make big purchases, such as houses or cars. When consumers pay less in interest, this gives them more money to spend, which can create a ripple effect of increased spending throughout the economy.
Detailed explanation-3: -Shop around. Improve your credit score. Choose your loan term carefully. Make a larger down payment. Buy mortgage points. Rate locks. Refinance your mortgage.