Explain the connection between the price of a financial asset and its interest rate
What will be an ideal response?
There is an inverse relationship between the price of a financial asset and its interest rate. When the price of a financial asset rises, its interest rate falls. Similarly, when the interest rate on an asset falls, the price of the asset rises.
Economics
You might also like to view...
In 2003, the largest component of U.S. national income was
a. compensation of employees b. rental income c. proprietor's income d. farm income e. corporate profit
Economics
If the Gini coefficient is 1, this means that __________.
a. the income distribution is completely equal b. the income distribution is completely unequal c. that there is no income distribution
Economics