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An increase in the rate of interest may reduce the profits of a company because

(a) the customers will have more money to spend.(b) exports will become easier and cheaper.(c) costs will increase since overdrafts and loans will be more expensive.(d) it will become more rewarding to invest in new products and projects.

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Question ajoutée par Kishor Vadher , Sales Manager , Hausstrom ltd. Lagos
Date de publication: 2015/03/24
Haseeb Khalid
par Haseeb Khalid , Sales and Promotion Manager. , Medi Urge

When interest rate goes up so as saving trend. people tend to save more and spend less and at the same time cost ll go up due to multiple factors based on interest rates.  Eventually company had to bare loss interms of extra effort required to cope this or in profits. 

Vinod Jetley
par Vinod Jetley , Assistant General Manager , State Bank of India

(c)costs will increase since overdrafts and loans will be more expensive.

Utilisateur supprimé
par Utilisateur supprimé

An increase in the rate of interest may reduce the profits of a company because costs will increase since overdrafts and loans will be more expensive

Shahbaz Muhammad
par Shahbaz Muhammad , Sr. electrical inspector , Bureau Veritas

you pay more money as a interest.

anthony sevilla
par anthony sevilla , Secretary , Arab Supplier General Trading CO LLC

to much loan for not necessarily thats why the company reduce the profit

girish shamanur
par girish shamanur , Executive Stores , Shahi exports ltd

HIKE IN BANKING RULE FOR INCREASE IN LOAN RATE