Inflation and Interest Rates by Faiz, Abdulllah and Emmanuel by Faiz Razaq https://padlet.com/faizrazaq/pb49d6yaxlq4msle en-us 2023-03-31 05:37:57 UTC 2025-10-05 13:30:20 UTC hello@padlet.com Welcome to our padlet wall. On this padlet wall we will be discussing about Inflation and Interest Rates. faizrazaq https://padlet.com/faizrazaq/pb49d6yaxlq4msle/wish/2539439644 2023-03-31 05:45:07 UTC https://padlet.com/faizrazaq/pb49d6yaxlq4msle/wish/2539439644 Video #1 faizrazaq https://padlet.com/faizrazaq/pb49d6yaxlq4msle/wish/2540406967 https://www.youtube.com/watch?v=HQ-Kg_xgdhE
This video discusses what inflation is.
- Inflation is when prices in an economy rise for goods and services. 
- Inflation = average rate that prices are rising
- Old prices will be put onto a calculator and will change the price giving it a single percentage number "the rate of inflation". 
- Inflation helps set welfare payments and it can help you ask how much of a raise you want from your boss. A little bit of inflation helps an economy grow and wards off deflation.
- Inflation can be bad for savers. When inflation damages your debt, it will damage your savings. $100 in your bank account will buy you less today in 5 years. If your income does not match today's prices, you will lose money.
- In stable economies, inflation usually goes up by 2% a year.]]> 2023-04-01 01:21:07 UTC https://padlet.com/faizrazaq/pb49d6yaxlq4msle/wish/2540406967 Video #2 faizrazaq https://padlet.com/faizrazaq/pb49d6yaxlq4msle/wish/2540417243 https://www.youtube.com/watch?v=iiEiRZhfOl8
- Inflation is caused by the confidence people have in their money
- Inflation is caused when the government's currency is threatened by something serious, such as war. It will then lose intrinsic value.
- Inflation is also caused when people have to much money but there is little supply
- Inflation can also be caused by the ratio of buying and producing in the economy, also called supply and demand. For instance, there would be no inflation or deflation of prices if everyone purchased the exact amount of products and services produced over the course of a year. Prices will change, though, if abnormally high or low levels of production or demand occur for the items.]]> 2023-04-01 01:47:48 UTC https://padlet.com/faizrazaq/pb49d6yaxlq4msle/wish/2540417243 Video #3 faizrazaq https://padlet.com/faizrazaq/pb49d6yaxlq4msle/wish/2540434965 https://www.youtube.com/watch?v=GHHesANT6OM
- A fee paid by the borrower to the lender is known as interest, and the interest rate is the sum that the borrower is required to pay.
- For instance, if you take a loan from a bank for something such as education, and you take $10,000, in exchange for the $10,000 loan, the bank will charge you 5% interest annually until the $10,000 loan is paid. Each year, you would have to pay $500 interest.
- Another instance is you can keep your money in a savings account at a bank, and you will be loaning your money to the bank. The bank can then use your money for investments or use the money to loan to other people. The longer you keep your money in the bank, the more interest you will earn, which means the more money you will make.]]> 2023-04-01 02:32:53 UTC https://padlet.com/faizrazaq/pb49d6yaxlq4msle/wish/2540434965 Video #4 faizrazaq https://padlet.com/faizrazaq/pb49d6yaxlq4msle/wish/2540479007 https://www.youtube.com/watch?v=R8VBRCs2jTU
This video describes how raising interest can control inflation in our economy. To begin with, a little inflation is OK since it keeps the economy moving forward at a reasonable pace. Yet it's a concern when inflation persists at a high level for a long time. Because employees will need to be paid more at higher rates, company expenses will rise. Increasing interest rates can drastically slow an economy down, but there is a wait in the brakes. The entire impact of changing interest rates on slowing down inflation may not be felt for two years. As central banks are aware of this, they attempt to read the future when they set interest rates, although doing so is difficult. Even if central banks do make the right decision, a crash might still occur.]]> 2023-04-01 04:57:17 UTC https://padlet.com/faizrazaq/pb49d6yaxlq4msle/wish/2540479007 oshomaemmanuel https://padlet.com/faizrazaq/pb49d6yaxlq4msle/wish/2541590647 2023-04-03 02:24:30 UTC https://padlet.com/faizrazaq/pb49d6yaxlq4msle/wish/2541590647 Price increase. oshomaemmanuel https://padlet.com/faizrazaq/pb49d6yaxlq4msle/wish/2541607871 Due to inflation and the rising prices of goods over time we tend to buy less.

It comes as a shock to some of us when we try buying a product we usually buy, and we see a jump in prices.

]]> 2023-04-03 02:38:35 UTC https://padlet.com/faizrazaq/pb49d6yaxlq4msle/wish/2541607871 Inflation over time oshomaemmanuel https://padlet.com/faizrazaq/pb49d6yaxlq4msle/wish/2541669810 - Price increase does not happen at once, it usually takes its time to set.
In the picture above we can see just how much it affects the foods we eat. thesame amount we use to purchase a burger in 1990 would be the same price for a much smaller burger.]]> 2023-04-03 03:33:15 UTC https://padlet.com/faizrazaq/pb49d6yaxlq4msle/wish/2541669810 Websites https://padlet.com/faizrazaq/pb49d6yaxlq4msle/wish/2544328402 https://www.investopedia.com/insights/forces-behind-interest-rates/

This Website talks about what are interest rates.  

- The interest rate is the cost of lending money.

- Borrowers pay interest because they are required to pay for a price having the money to be able to purchase goods and services, rather than not having to wait years.  

- Many Businesses borrow money from the bank for further profit. They may borrow money so that they are able to purchase equipment thus helping the companies earn revenue.


]]> 2023-04-05 01:04:44 UTC https://padlet.com/faizrazaq/pb49d6yaxlq4msle/wish/2544328402 Website #2 https://padlet.com/faizrazaq/pb49d6yaxlq4msle/wish/2544425000 https://www.canada.ca/en/financial-consumer-agency/services/interest-rates-rise.html

This website is from the Government of Canada, it talks about how to manage your money when interest rates rise.

- An Interest rate can affect you if you have a mortgage or a loan with varying interest rates. The best way to avoid a change in your mortgage or loan interest rates is by having a fixed rate.

- The interest rate is used to calculate how much u need to pay to take a loan, that money that you have to pay back to the lender.

- Reducing down your expenses, paying down the debt as much as possible to deal with interest rates, pay the most expensive interest rates to pay less interest with your other loans.

- Having an emergency fund can help deal with unexpected expense]]> 2023-04-05 02:18:09 UTC https://padlet.com/faizrazaq/pb49d6yaxlq4msle/wish/2544425000 Reflection questions oshomaemmanuel https://padlet.com/faizrazaq/pb49d6yaxlq4msle/wish/2544466551 What did you learn about your topic that surprised you the most?

We learned that there are number of ways the government uses to manage inflation and one that stood out to us was the monetary policy which is using money supply and interest rate to reduce the amount of money going around
 ]]> 2023-04-05 02:56:16 UTC https://padlet.com/faizrazaq/pb49d6yaxlq4msle/wish/2544466551 Provide a real-life example of how this topic is relevant or interesting for you. oshomaemmanuel https://padlet.com/faizrazaq/pb49d6yaxlq4msle/wish/2544477054 For one, going to the grocery shop or your favourite fast food restaurant and seeing that your favouraite menu item has gone up in price is really upseting especailly when its something you cannot live without. 
The price increase may be a few cents but over time it adds up.]]> 2023-04-05 03:05:59 UTC https://padlet.com/faizrazaq/pb49d6yaxlq4msle/wish/2544477054 If you could pass on your knowledge to a family member or friend, what do you think is the most important thing to pass on? oshomaemmanuel https://padlet.com/faizrazaq/pb49d6yaxlq4msle/wish/2544480513 To start saving money as soon as possible and invest some of it in stcoks.]]> 2023-04-05 03:09:08 UTC https://padlet.com/faizrazaq/pb49d6yaxlq4msle/wish/2544480513 Website #3 https://padlet.com/faizrazaq/pb49d6yaxlq4msle/wish/2544488787 https://credit.org/blog/what-does-interest-rate-really-mean/
This website talks about how interest rates & how does interest work

Saving Account Interest

- It works when u put money into your saving account, and the bank uses that money to loan to other people, the bank will provide u interest for your savings.

Federal Reverse Interest rates
- The bank will charge another for quick overnight loans that need to meet their legal reserve.


]]> 2023-04-05 03:17:32 UTC https://padlet.com/faizrazaq/pb49d6yaxlq4msle/wish/2544488787 Website #4 https://padlet.com/faizrazaq/pb49d6yaxlq4msle/wish/2544497504 https://www.nerdwallet.com/ca/banking/what-is-interest-rate

This website talks about what is an Interest Rate.

- The Canadian prime rate is 5.95%, its the average of the 6 big banks' official prime rates.

- Prime don't change, they often go years without changing.

- Factors that change interest rates are what interest rates are offered to you including the amount of money borrowed, the time it took to borrow money and pay it back, and your credit score.


]]> 2023-04-05 03:26:31 UTC https://padlet.com/faizrazaq/pb49d6yaxlq4msle/wish/2544497504