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Demand For Money Continued
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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.

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(4)
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