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Pages:
1 page/≈275 words
Sources:
1 Source
Level:
APA
Subject:
Business & Marketing
Type:
Research Paper
Language:
English (U.S.)
Document:
MS Word
Date:
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Topic:

FMA-III 1 of 3: Interest Rates and Risk Consideration in Business and Economic Activity (Research Paper Sample)

Instructions:
Explain the importance of interest rates, and how risk is considered to businesses and economic activity. Your response should be at least 250 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations. Course Textbook Lasher, W. R. (2011). Practical financial management (6th ed.). Mason, OH: South-Western.  Chapter 10: Capital Budgeting source..
Content:

Interest Rates and Risk Consideration in Business and Economic Activity
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In business and economy, interest rate as the cost of borrowing investing money is significant to the growth of economy. When interest rates are high, economy is stifled. On the other hand, economy grows when interest rates are low based on the fact that most of business activities are operated on borrowings.
Therefore, interest rate is of great importance to the economy. Interest rate helps in adjusting inflation in the economy. This is done by adjusting the rate such that it is higher than the inflation rate anticipated hence regulating the situation. It helps businesses cover up for the cost that has been added. Direct effects to the economy are manifested in businesses and personal borrowing of money. For...
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