castor oil natural hair In this way, if the interest rate of a country is higher than that of other countries, it will attract a large amount of capital inflow, and the outflow of funds from the country will decrease, leading to the buying of this currency in the international market. At the same time, the capital account balance has been improved, and the currency exchange rate has been raised. On the other hand, if a country is loose credit, interest rates fell, if interest rates lower than in other countries, can cause large capital outflows, foreign capital inflows to reduce, the capital account balance of payments deteriorates, while selling the currency in foreign exchange market, caused the exchange rate to fall. [R esponding to suggest continued low interest rates and bond purchases at the limiting the central bank's room for manoeuvre in the case of an economic downturn, draghi said the drop was a "the possibility of more distant than it was a year ago". Then the interest rate theory of the loan is the interest rate theory of neoclassical school, which is proposed to correct Keynes's theory of "liquidity preference". In some ways, the theory of interest rate can be regarded as a synthesis of classical interest rate theory and Keynesian theory. According to the length, there are mini passenger cars (no more than 3.5 meters), small passenger cars (3.5-7 meters), medium-sized buses (7-10 meters) and large passenger cars (more than 10 meters). Interest rates have a very important impact on the exchange rate, which is the most important factor affecting the exchange rate. We know that the exchange rate is the relative price between the two countries' currencies. Like other commodity pricing mechanisms, it is determined by the supply and demand relationship in the foreign exchange market. Foreign exchange is a kind of financial asset, which people hold because it can bring the benefits of capital.