Question by  KathyM (20)

How do lower interest rates help the stock market?


Answer by  jon6 (488)

Lower interest rates help the stock market by increasing the money supply. The larger the money supply is, the more money there is available to invest in the stock market.


Answer by  jpkbatl (85)

Lower interest rates allow companies to borrow at lower rates and thus provide higher returns to shareholders. They also force investors seeking higher returns to buy stocks.


Answer by  Zaka (2315)

Cheap cash to be loaned. More Money is exchanged with more fluidity which creates a trickle down of increased supply and demand for available funds.


Answer by  willard (874)

Businesses use borrowed money to buy inventory to be sold and to expand and improve their operations. Low interest rates allow businesses to lower the costs associated with this borrowing.

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