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Essay

Monetary Policy

Essay specific features

 

Issue:

Business

 

Written by:

Mark C

 

Date added:

August 2, 2012

 

Level:

University

 

Grade:

A

 

No of pages / words:

6 / 1416

 

Was viewed:

2067 times

 

Rating of current essay:

 
Essay content:

This interest rate then affects the whole range of interest rates set by commercial banks, building societies and other institutions for their own savers and borrowers. It also tends to affect the price of financial assets, such as bonds and shares, and the exchange rate, which affect consumer and business demand in a variety of ways...
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Lowering or raising interest rates affects spending in the economy. A reduction in interest rates makes saving less attractive and borrowing more attractive, which stimulates spending. Lower interest rates can affect consumers’ and firms’ cash-flow – a fall in interest rates reduces the income from savings and the interest payments due on loans...
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