English, asked by hoorainanser938, 9 months ago

will there be an effect on interest rates if brokerage commissions on stocks fall? explain​

Answers

Answered by ishika2308
1

Explanation:

Yes. There would be an increase in the rates of interest. If the commission on stocks reduces, it would make the stocks more liquid compared to bonds, leading to reduced demand for bonds. The curve showing demand would move to the side of the broker, causing the bond prices to reduce, hence an increase in the rates of interest.

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