The bank: If interest rates increase naturally the EMI per month increases which for a short time
Increases its revenue but in the long run it finds difficult to generate new leads by acquiring new customer Base. On the other hand if interest rates decrease, it motivates the borrower and increases new base For the bank.The Investor: With interest rates increasing the Monthly Installments increases which becomes an Additional burden on the investors. On the other hand if it decreases it becomes a bit easier to repay Back the loan.Industrial Group: If interest rates decreases, businesses can expand and economy becomes much Agile and healthy. Decreased interest rates motivates the traders to acquire more business loans from Banks.Effect of Freight Rates:Freight rates depend on factors like, Demand and supply. The more the demand the more we see rise AIn rates.The bank: If freight charges increases bank may see a rise in earnings as number of investors will Have to service their investments by taking loans from banks.The Investor: If the freight charges are going down, investors will have less income. The reason behind it Like commodities and daily use utilities like sugar, pulses price falls which may affect the traders.Industrial Group: The effect is like when it increases it turns profitable as they can earn more money From the same quantity of goods. On the other hand if it decreases can turn a bit better for the end usersLike, consumers.The Interest rates and freight charges depend on one big factor that is demand and supply. Thereshould Be some parity between these two parameters to ensure proper economical balance and growth.
References:
benefits.northropgrumman. (n.d.). benefits.northropgrumman. Retrieved April 3, 2014, from http://benefits.northropgrumman.com/_layouts/NG.Ben/Pages
Quick Response Freight Manual - Final ReportSeptember 1996. (n.d.). Chapter 2. Retrieved April 3, 2014, from http://www.tongji.edu.cn/~yangdy/quick/ch2.htm
HowStuffWorks "Business & Money". (n.d.). HowStuffWorks. Retrieved April 3, 2014, from http://money.howstuffworks.com
Economic Impact of Freight | Bureau of Transportation Statistics. (n.d.). Economic Impact of Freight | Bureau of Transportation Statistics. Retrieved April 3, 2014, from http://www.rita.dot.gov/bts/programs/freight_transportation/html/freight_and_growth.html
