Posts with keyword demand-supply→
What determines the “real” interest rate?
(This post is a part of the series on Basics of Finance and Investing.)
An interest rate is the monthly rate you pay as a borrower, or receive as a creditor/lender. If you save money in bank, or invest in a money market, you are indirectly lending money to a borrowing corporation (or the government). If the interest rate goes up, the borrower must pay you more, which makes them unhappy but you happy (your bank balance soars). The mood swings the other way when interest rate goes down.
Continue >>
Banks, Investment companies and Investment banks
(This post is a part of the series on Basics of Finance and Investing.)
You and I, as members of the household sector, want to invest our money, whereas the business sector wants to raise money to pay for real assets. Such supply and demand requirements create an atmosphere of synergistic interactions between these two sectors.
Continue >>
Players in an investing environment
(This post is a part of the series on Basics of Finance and Investing.)
It helps to know the main components of a financial world, the forces they exert and the interests they represent. There are three major players: household sector, business sector and government sector.
Continue >>

