Bond prices in the market decrease when the banks offer higher interest rates because-
Bonds are investment securities where an investor lends money to a company or a government for a set period of time, in exchange for regular interest payments. Bonds prices in the market decrease when the bank interest rate rises. Usually, when bank interest rates rise, investors deposit their money in banks. This is mainly because investors will receive a higher return with the same amount of money that was earlier invested in bonds. It will also decrease the demand for bonds in the market, further reducing bond prices. And the inverse will happen if the bank interest rates reduce, it leads to an increase in the price of bonds because investors will demand more bonds to invest in, speculating higher returns than what they would otherwise receive through banks.
Private sector lender ______ has been added to the FTSE All - World Index nearly nine years after it was removed .
In cases of NPAs with balance of ₹5 crore and above stock audit at what intervals by external agencies appointed as per the guidelines approved by th...
Recently Reserve Bank of India gave approval to which of the following Fintech firm to operate as NBFC account aggregator?
Marginal Standing Facility is ___________________?
The Banker's most prestigious digital banking award was bestowed upon which of the following banks?
The limits for FPI investment in Government securities (G-secs) is at …………………… of outstanding stocks of securities for FY 2022-23
...Which of the following is an entity that essentially helps banks to transfer the credit risk by buying their bad debts at mutually agreed value?
Which of the following methods of retiring bonds before maturity is generally considered the most detrimental to the bondholders?
Which private sector bank has launched foreign outward remittance service through mobile banking, after this Non-resident external and resident savings ...
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) was introduced by creating a CGTMSE Trust by Govt of India and ….