7 May 2010: All Major Stock Market Indexes are Down for the Year.
Do lower interest rates stimulate a lagging economy?
How do you determine the statutory interest rate?
If you now the annual interest rate, what is the monthly rate?
Should the adverb go before or after the verb?
What is a rate of change?
Why is the stock market going down?
Lower interest rates help the stock market by increasing the money supply. The larger the money supply is, the more money there is available to invest in the stock market.
Lower interest rates allow companies to borrow at lower rates and thus provide higher returns to shareholders. They also force investors seeking higher returns to buy stocks.
Cheap cash to be loaned. More Money is exchanged with more fluidity which creates a trickle down of increased supply and demand for available funds.
Businesses use borrowed money to buy inventory to be sold and to expand and improve their operations. Low interest rates allow businesses to lower the costs associated with this borrowing.
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