Economics homework help again :P?

Define the term 'cash rate'. What does this measure? Is it measured by tightening and contracting inflation rates or interest rates?

Answer:
Cash rate means the interest rate on cash deposits - short term cash amounts cf bond rates - long term deposits.
The rate is measured in a % . This rate is increased to reduce spending (discourage spending - ie via credit) and encourage saving. Demand declines, preasure on prices declines too.
The opposite occurs if you have high unemployment and low inflation.

The answers post by the user, for information only, FunQA.com does not guarantee the right.



More Questions and Answers:
  • How can education improve the quality of population?
  • Is the ever increasing speed of paperless retail transactions helping the economy like it seems it would?
  • Can someone tell me about whole meaning of economy? Is it nice to learn about economy and what's the benefit?
  • Which topic is best one?
  • What are better alternatives to capitalism?
  • How are we still being affected by the Great Depression brought on by the stock market crash of 1929?
  • 10 defination of income from accounting and 10 from economics?
  • Which EU country is the most vocal and most regretful about adopting the euro currency?
  • What are the chances of voluntary simplicity becoming the dominant lifestyle?