Link to the rising interest rates cartoon here
Let's see how proficient you are about interest rates.
1. An interest rate is not…
- a key tool of monetary policy
- a return for savings
- a cash outflow
- a cost of borrowing
2. What effect does inflation have on interest rates?
- it increases interest rates
- it decreases interest rates
- it doesn't have an impact on interest rates
- it depends
3. Rising interest rates mean that…
- firm sales are likely to increase
- borrowing is more expensive
- average disposable income will increase
- savings will decrease
Second batch of questions about interest rates to be published next week. Stay tuned!
