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38 lessons,
5h 23m
Demand For Money Continued
972 plays

3.2.2 Relationship between bond price and interest rate of savings account.

Mohini Jain
Gold medalist in Economics and graduate from St. Francis. Loves to read novels.

Unacademy user
if rate of intrest is inversely proportional to price of bonds , why have you used directly proportional symbol in representation ?
Mohini Jain
6 months ago
Hey chanchal... Thats the symbol for inversly proportional only... :)
Chanchal Tomar
6 months ago
but for invers;y proportional we write 1/x(that value) in front of the proportionality symbol , ?
Mohini Jain
6 months ago
If you write in the way you are describing.. You simply put = symbol and write... But if you use the symbol which i used you can simply write the 'x' value :)
maximum rate of interest is just our expectations about interest rate? or it is anything else?
Mohini Jain
a year ago
Yes its just our expectation... Speculation is all about expectations.
Mandar Kharkar
a year ago
thank you very much mam..
this is same for minimum rate of interest