introduction to economics for women why interest rates will move?

We would like to save the money, we would like to use skillfully, distantly the person who has interest in the gold increases, but with not only the hacksaw before the eye, by the fact that it keeps looking at the movement of the whole society widely, the power which reads ahead money sense polishes concerning the body.

This time, it will try studying as the first step concerning “the interest”.

As for interest rental charge of money

When we deposit the money to the bank, “interest” is attached.Those which display the ratio interest about which is attached vis-a-vis the money which it deposits, are “the interest”.Now it is circumstance of the low interest rate where interest is not almost attached, but as for time of bubble economy the interest of time deposit being also 6%, many interests were attached.”When business is good, the interest is high, when business is bad, the interest is low” is not that also everyone has that kind of feeling, how without, probably will be?

In the first place, as for the behavior that “the money is deposited to the bank”, say that we lending the money to the bank.You lend out the money which we deposit to enterprise, and the like acquire interest and have returning the bank, the profit obtain.Portion of the profit we are to have had making interest of deposit.

Don’t you think? so when you think, the interest borrows the money, you can call also “rental charge”.

if interest rates go up a lot of people want to borrow money

for example,, if you think in the video rental, and movies new title it is usually rental fee has been set high. this is, because there is a popular, some people even higher rent from. on the other hand, not popular, the old ones, such as the cheaper rental fee, you to borrow to get as many people as possible.

money as well, if interest rates went up a lot of people want to borrow, are you going to make an easy state to lower the interest rate borrowing if fewer people borrow.

in, and when a lot of people want to borrow is, what any time.

the next page it is more and more people want to borrow money any time?
also has a role to save the price increases is>>

it is more and more people want to borrow money any time?

a typical scene individuals to borrow money when buying a house. it has increased savings, i might be able to go to return borrowed a mortgage even if it came out well in the household can afford and, when you buy something expensive can not afford to have come out money and feelings.

when a company is borrowing money, selling products, more likely when the expected benefits and, or trying to increase the employee more, is when you’re going to increase the company facilities, such as trying to increase.

that is, when consumption has become active in the economy is getting better, you say.

in such a case because a lot of people want to borrow money, the bank can i not raise the interest rate will consider. also, since more and more people come to shop pulled out a deposit, so as not to reduce deposits out the benefits of raising the deposit interest rates requirement that when you do.

in this way, interest rates rise and the economy becomes better flow that is going to become. conversely, the fact that interest rates have gone up is also a sign the economy is getting better. what interest rate is a kind of thermometer to measure the quality of economic.

also has a role to save the price increases

the economy is getting better, when the active consumption the price of things will come up. the price rises to come, until now1000could buy something for $1100yen, 1200will not buy and do not put a lot of money and yen. that is, value of money is way down.

there, do not over price rises, will require measures to prevent. to suppress the rise of prices, it is necessary that consumption is not to become too active, it will want to refrain from borrowing money raise interest rates it is effective.

not because of the high interest rates to borrow money. also, higher deposit interest rates because of, shopping rather than trying to deposit, you mean that you no longer use the money to come and. doing, such as raising interest rates to prevent inflation this is the responsibility of the bank of japan.

interest rates will do now by canceling the zero interest rate?

after the collapse of the bubble economy, because it was followed by recession, policy interest rates close to zero as possible (zero-interest-rate policy) it had been taken, graduallybecause the economy is getting better2006years7zero interest rate policy was stopped in may.

therefore, interest rate has been rising gradually over the next few months. time like this, period of time deposit or deposit to put short-term, if you leave those types of variable interest rate, makes it easier to reflect the rising interest rates in the future. the reverse mortgage, type variable interest rates should be avoided as much as possible, select the type you might want a fixed period of time long.

but, since prices have not risen yet so, have seen the time being is going to be a moderate pace rise in interest rates also (2006years9mon current) . movement of the economy of the future, attention to the movement of interest rates, that timelet’s choose the financial products that matches the.