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List four factors that may lead to low deposit rate or almost constant levels of deposits while the lending rates move up

List four factors that may lead to low deposit rate or almost constant levels of deposits while the lending rates move up.

Answers

Joseph
1.in case the government is working to control deflation.
2.in case the government sets a favourable maximum interest rate on loans this will encourage borrowing and discourage depositing.
3.in case there is a foreseen scenario that borrowing interest rates my go high in the near future which will making borrowing expensive.
4.in case the central bank decreases the amount of liquid money to be held in custody my commercial banks.
Erwoti answered the question on August 7, 2019 at 12:02

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