Question

What are the effects of bank rates

Answer 1

Explanation:

The central bank offers a long - term fund to the bank in need. A change in bank rate may positively or adversely affect a country's economy. It affects the customers as there will be a change in the interest rates of personal loan

A change in bank rates may trigger a ripple effect, as it impacts every sphere of a country's economy. For instance, stock markets prices tend to react to unexpected interest rate changes. A change in bank rates affects customers as it influences prime interest rates for personal loans.