What are the factors influence interest income
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Answer:Demand/supply of money- When economic growth is high, demand for money increases, pushing the interest rates up and vice versa. Government borrowing and fiscal deficit- Since the government is the biggest borrower in the debt market, the level of borrowing also determines the interest rates.
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ᴀ ɴᴜᴍʙᴇʀ ᴏғ ғᴀᴄᴛᴏʀs ᴍᴀʏ ᴀғғᴇᴄᴛ ᴛʜᴇ ʏɪᴇʟᴅs ᴛʜᴀᴛ ʙᴀɴᴋs ᴇᴀʀɴ ᴀɴᴅ ᴘᴀʏ ᴏɴ ᴀssᴇᴛs ᴀɴᴅ ʟɪᴀʙɪʟɪᴛɪᴇs ᴀɴᴅ ᴛʜᴇʀᴇғᴏʀᴇ ᴛʜᴇɪʀ ɪɴᴛᴇʀᴇsᴛ ɪɴᴄᴏᴍᴇ ғʟᴏᴡs. ᴛʜᴇsᴇ ғᴀᴄᴛᴏʀs ɪɴᴄʟᴜᴅᴇ ᴍᴀʀᴋᴇᴛ ᴅᴇᴍᴀɴᴅ ᴄʜᴀʀᴀᴄᴛᴇʀɪsᴛɪᴄs, ᴍᴀʀᴋᴇᴛ sᴜᴘᴘʟʏ ᴄᴏɴᴅɪᴛɪᴏɴs ɪɴᴄʟᴜᴅɪɴɢ ᴍᴀʀᴋᴇᴛ sᴛʀᴜᴄᴛᴜʀᴇ, ᴀɴᴅ ᴍᴀᴄʀᴏᴇᴄᴏɴᴏᴍɪᴄ ɪɴᴅɪᴄᴀᴛᴏʀs.
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