Low interest rates are in essence a signal to market participants that credit is:
A) tight and it is good idea to lend money.
B) tight and it is good idea to borrow money.
C) easy and it is good idea to lend money.
D) easy and it is good idea to borrow money.

Question

Quizplus · Accepted Answer

Low interest rates signal that credit is easy and it is a good idea to borrow money. This makes borrowing cheaper and more accessible, encouraging individuals and businesses to invest and spend, thereby stimulating economic growth. Additionally, low interest rates make cash and savings less attractive, prompting investors to seek out higher returns in riskier assets, such as equities, which can also help boost the stock market.

Low Interest Rates Are in Essence a Signal to Market