Terms Beginning With 'z'

Zero-Bound

  • January 17, 2020
  • Team Kalkine

Zero-Bound is a situation where the central bank reduces the interest rates to zero or close to zero with a view to accelerate the economy. A central bank has the power to lower the interest rate due to various reasons like accelerate a deteriorating economy or dampen down in case it is overheating. The term Zero-Bound is also used by the investors at times to define the stocks that seem to be rapidly dropping in value.

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