Interest rate changes are affected by the relationship of the total supply of funds provided by all investors and the total demand for funds by all borrowers.

Question

Quizplus · Accepted Answer

Interest rate changes are influenced by the supply and demand for funds in the financial markets. When the supply of funds exceeds demand, interest rates tend to decrease, and when demand exceeds supply, interest rates tend to increase.

Interest Rate Changes Are Affected by the Relationship of the Total