R
rinishj28
Member
1. The surplus balances due to interest rates above equilibrium level would result in people buying more of shares and bonds and other assets. Why?
2. Due to higher demand of shares, bonds etc. Prices rise and interest rates on these assets fall
How are the bank interest rates and the interest rates on these assets (which I'm assuming to be the coupons) related?
Thank You
2. Due to higher demand of shares, bonds etc. Prices rise and interest rates on these assets fall
How are the bank interest rates and the interest rates on these assets (which I'm assuming to be the coupons) related?
Thank You