--%>

Equilibrium interest rate

How is the equilibrium interest rate in the money market estimated? 

E

Expert

Verified

This total demand illustrates the total amount of money demanded at every interest rate. The equilibrium interest rate is found out at the intersection of the net demand for money curve and the supply of money curve.

   Related Questions in Finance Basics

  • Q : Technological improvement of production

    Normal 0 false false

  • Q : Describe risks related with using

    Describe risks related with using a large amount of short-term financing for working capital? By using a large amount of short-term financing usually allows funds to be raised at a lower cost however raise the firm's risk.

  • Q : What is a fund Fund: A lawful budgeting

    Fund: A lawful budgeting and accounting entity which offers for the segregation of moneys or other resources in the State Treasury for obligations in accordance with particular restrictions or limitations. A separate set of accounts should be maintain

  • Q : Explain computing of payback period How

    How do we compute the payback period for proposed capital budgeting project? What are the basic criticisms of the payback method? We compute the payback period for proposed project through adding a project's positive cash flows, one period at t

  • Q : What is Financial Restructuring

    Financial Restructuring: It is the reorganizing of a business' liabilities and assets. The procedure is frequently related with corporate restructuring where an organization's on the whole structure and its processes are refurbished. Though companies

  • Q : Describe how firm search optimal level

    Describe how a firm find out the optimal level of current assets. The optimal level of working capital is finding out by determining the amount that balances the requirement for liquidity and for profitability.

  • Q : Define the term year of Completion Year

    Year of Completion (YOC): This is the last fiscal year for which the appropriation is accessible for encumbrance or expenditure.

  • Q : Use of obtainable resources Normal 0

    Normal 0 false false

  • Q : Describe the equilibrium price and

    Assume the total demand for wheat and the net supply of wheat per month in the Kansas City grain market are as: 16_Table for wheat.png

  • Q : Define Sponsor Sponsor : It is an

    Sponsor: It is an individual, group, or organization which initiates or brings to a Legislator's attention a proposed law modification.