https://padlet.com/calvinkusiima256/mdowqwioduw3p0gx Calvin Kusiima en-us 2021-11-29 18:59:10 UTC 2021-11-30 03:57:00 UTC hello@padlet.com calvinkusiima256 https://padlet.com/calvinkusiima256/mdowqwioduw3p0gx/wish/1918770815 In this wall, I will evaluate the factors affecting the fluctuation of interest rates.]]> 2021-11-29 19:10:24 UTC https://padlet.com/calvinkusiima256/mdowqwioduw3p0gx/wish/1918770815 calvinkusiima256 https://padlet.com/calvinkusiima256/mdowqwioduw3p0gx/wish/1918804804  This video talks about why interest rates go up and down. Interest rates go up and down because of the things the federal reserve does. The federal reserve does this in order to control inflation.

I chose this video because it brings out the truth about why interest rates go up and down. I learnt that the Federal reserve is really involved in the whole cycle just so that it protects the economy of the country.]]> 2021-11-29 19:26:14 UTC https://padlet.com/calvinkusiima256/mdowqwioduw3p0gx/wish/1918804804 calvinkusiima256 https://padlet.com/calvinkusiima256/mdowqwioduw3p0gx/wish/1919182319  Low interest rates means lower cost of borrowing money. This in another words means that low interest rates affect the economy negatively because the value of consumer goods and services becomes low which also which as well negatively affects the tax rate. The federal reserve will try to avoid such a situation which will lead to the interest rates going up.

I chose this because it talks about why falling interest rates affect the economy. The explanations gave the reasons for the factors that affect the fluctuation in interest rates.]]> 2021-11-30 00:02:32 UTC https://padlet.com/calvinkusiima256/mdowqwioduw3p0gx/wish/1919182319 calvinkusiima256 https://padlet.com/calvinkusiima256/mdowqwioduw3p0gx/wish/1919205087 Increase in inflation leads to decrease in interest rates and increase in inflation leads to increase in interest rates. The decrease in purchasing power (increase in inflation) leads to high interest rates because lenders increase the interest rate in compensation for the decrease in the purchasing power of the money they are paid in the future.

I chose this video because the relationship between interest rates and inflation was clearly explained which enabled me to find other factors that affect the fluctuation of income.]]> 2021-11-30 00:22:44 UTC https://padlet.com/calvinkusiima256/mdowqwioduw3p0gx/wish/1919205087 calvinkusiima256 https://padlet.com/calvinkusiima256/mdowqwioduw3p0gx/wish/1919218521 Increase in demand leads to an increase in interest rates and a decrease in demand leads to a decrease in the in the interest rates. An increase of supply leads to a decrease in the interest rate and a decrease of supply leads to an increase of the interest rates.

I chose this video because it clearly explains how money supply and demand impact interest rates.]]> 2021-11-30 00:32:57 UTC https://padlet.com/calvinkusiima256/mdowqwioduw3p0gx/wish/1919218521 calvinkusiima256 https://padlet.com/calvinkusiima256/mdowqwioduw3p0gx/wish/1919242890 Fluctuation of the interest rates is affected by various reasons depending on wherever the interest rates are applied. If you have a low credit score, you will be given high interest rates and if your credit score is higher, the interest rates would be lower.

This website gives twenty five factors that determine the interest rate and fully explains them.]]> 2021-11-30 00:50:50 UTC https://padlet.com/calvinkusiima256/mdowqwioduw3p0gx/wish/1919242890 calvinkusiima256 https://padlet.com/calvinkusiima256/mdowqwioduw3p0gx/wish/1919468666 An increase in the amount of money made available for borrowers increases the supply of credit. The more the supply of the money increases the more the interest rate decreases. When the borrowers delay to pay back, the interest rates keep on increasing. This in other words increases the interest rate that has to be paid back.

I chose this website because it fully explains the forces behind interest rates and what causes them to rise and fall. This helped me get to know the factors of the fluctuation of interest rates.]]> 2021-11-30 03:13:27 UTC https://padlet.com/calvinkusiima256/mdowqwioduw3p0gx/wish/1919468666 calvinkusiima256 https://padlet.com/calvinkusiima256/mdowqwioduw3p0gx/wish/1919480112 In a growing economy, the demand of money is high because most of the companies keep on borrowing money from banks in order to expand their businesses. This is also promoted by the high demand of products by the consumers from the companies. The higher the demand for the money, the higher the interest rates.

I chose this website because it really explains the whole cycle of fluctuation of interest rates by explaining the factors that influence interest rates in an economy.]]> 2021-11-30 03:21:46 UTC https://padlet.com/calvinkusiima256/mdowqwioduw3p0gx/wish/1919480112 calvinkusiima256 https://padlet.com/calvinkusiima256/mdowqwioduw3p0gx/wish/1919500335 When you lend money now, the prices of goods and services may go up by the time you are paid back, so your money's original purchasing power may decrease. Due to this kind of inflation, this will lead to an increase or a decrease of the interest rates depending on whether the purchasing power increases or decreases thus leading to fluctuation of interest rates.

I chose this website because it gave me a better understanding of inflation and how it affects the fluctuation of interest rates.]]> 2021-11-30 03:35:21 UTC https://padlet.com/calvinkusiima256/mdowqwioduw3p0gx/wish/1919500335 calvinkusiima256 https://padlet.com/calvinkusiima256/mdowqwioduw3p0gx/wish/1919516810 This image shows us four factors that affect the level of interest rates. These factors are; production opportunities, Time preference for consumption, risk and expected inflation. I will explain risk because lenders go through a risk by lending their money which they might or might not get back on time. If all borrowers are paying back on time it means that more money will be available for credit which decreases the interest rate compared to when its not available.

I chose this picture because it clearly outlines some of the factors that affect the fluctuation of interest rates.]]> 2021-11-30 03:45:44 UTC https://padlet.com/calvinkusiima256/mdowqwioduw3p0gx/wish/1919516810 calvinkusiima256 https://padlet.com/calvinkusiima256/mdowqwioduw3p0gx/wish/1919530607 The above picture shows the fluctuation of the interest rate of bank of Canada. The fluctuation was caused by various factors but I will focus more on inflation. The cost of goods six years is not the same as now due to the decrease in purchasing power (increase in inflation). When inflation increases interest rates increase and when the purchasing power is constant, the interest rates tend to stay constant as well.

I chose the above picture because it shows a graph of Bank of Canada key interest rate movements. Analyzing thus picture helped me evaluate the factors that affect the fluctuation of interest rates.]]> 2021-11-30 03:57:00 UTC https://padlet.com/calvinkusiima256/mdowqwioduw3p0gx/wish/1919530607