Tag Archives | interest

The supply and demand theory of interest explained

The supply and demand theory of interest explained. Capital is demanded by the investors because of its productivity. A firm or a producer demands capital as he wants to grow with production.

The liquidity preference theory of interest explained

The liquidity preference theory of interest explained. Liquidity means shift ability without loss. It refers to easy convertibility. Money is the most liquid assets. Money commands universal acceptability. Everybody likes to hold assets in form of cash money.

Contribution of Attention and Interest in Learning

There are mainly three types of mental activity-knowing, feeling and willing. We must attend to a particular thing at first in order to know, feel or act. Attention is common to all these mental activities. It is a pre-condition to them and is always present in conscious life. It is a characteristic of our consciousness.

How to arouse customer interest towards your product ?

Once the attention of the prospect is drawn towards the product, his interest in that product should be developed for maintaining that attention. Creating interest is highly essential because attention is usually temporary.

How to calculate Interest?

The topic of interest has been a very controversial one. Harold Somers has rightly said, “Few topics in Economics infact have received as varied treatment as has the theory of interest.” Interest is the reward, remuneration and an incentive provided to the moneylender for depriving him of his money for certain period.

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