homework

Examine the impact on a business if there is a fall in the rate of interest:

If the rate of interest falls, business mighty be directly affected.
First the definition. Rate of Interest is the price of acquiring a loan. Businesses of all sizes borrow money, often from banks, as a result, the bank imposes a charge for the privilege, this charge is the interest, usually expressed as a percentage.
If interest rates change, the incentive for individuals to take out loans to buy goods will also change. If the rate of interest falls, for example, then the charges on a loan to buy larger items like cars is also likely to fall. As a result, more people might be willing to buy such items. Businesses selling these items might see an unexpected rise in demand for their products.
In conclusion a rise or a fall in the rate of interest can influence a lot a business.