What is the Effect of Interest Rates on Investment?

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As an investor, we must learn and understand the relationship between interest rates and investment instruments. The benchmark interest rate issued by the Fed often has a global impact on the world of investment and finance.

Interest Rate Increase
The relationship between interest rates and various investment instruments such as crypto and stocks will be inversely proportional, so if interest rates increase, investment instruments will weaken, or prices will fall.

Interest Rate Decrease
If interest rates decrease, the prices of several investment instruments will soar, because people tend to invest rather than save money in the bank.