Some people are only willing to save if they are rewarded with a high interest rate....

Some people are only willing to save if they are rewarded with a high interest rate. Interest rates on deposits has been relatively low lately. Does this influence your willingness to save? Would you save more money if interest rates were higher? Because interest rates are low, are you more willing to borrow? Why might you save even if the interest rates are low?

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Expert Solution

Some people are only willing to save if they are rewarded with a high interest rate. Interest rates on deposits has been relatively low lately .The statement indicate about behaviour of investor's saving , the saving attitude directly depend on the return or interest rate.

Does this influence your willingness to save?

Answer ) In some cases of behaviour finance and study support the tought of willingness to save . People generally try to save more money in case of probability of higher return..

Would you save more money if interest rates were higher?

Answer) Yes, I would prefer to save more money in case of higher interest rate.

Because interest rates are low, are you more willing to borrow?

Answer ) In case of low interest rate , people try to borrow much for making investments in different other asset class, like land, gold , property and many more, to levarge the condition.

Why might you save even if the interest rates are low?

Answer)The saving in the situation is made to gain security in future or to meet predicided future goals, like purchase of car , property to match the future burden of study and many more.

jeff jeffy answered 1 year ago

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