Economic Indicators Assessment

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Economic Indicators

Savings Rate

Economic Indicator- the savings rate is the income that is not spent and is instead differed for consumption. In some instances, saving can also include reducing recurring costs such as a cell phone, or cable bill. In essence, individuals preserve money now, for a predetermined use in the future. This money is usually deducted from an individual's disposable income to use for future investment. The savings rate is an economic indicator of individual's propensity to save. This has implications in regards to the overall indebtedness of the nation. It can also indicate the purchasing power available for discretionary purchases.

Rate of Value -- 3.4% as of October 2012

Source of Information -U.S. Bureau of Economic Analysis,

"United States Personal Saving Rate." United States Personal Saving Rate. N.p., 7 Jan. 2013. Web. 02 Feb. 2013.

d. Date of information- January 7, 2013

Prime Lending Rate

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a. Economic Indicator- the prime interest rate is a universal interest rate that applies to banks and other financial institutions. This rate is usually the rate that is used to lend to favored customers with high credit quality. The prime rate is a universal interest rate that applies to all financial institutions irrespective of geographic location. The prime rate is also an indicator of overarching fiscal and monetary policy. To encourage spending and refinancing, the prime may become lower. If the rate is raised, the cost of borrowing increases, which ultimately tapers consumer borrowing efforts.

b. Rate of Value- 3.25%

c. Source of Information- "Prime Lending Rate." Prime Lending Rate. N.p., 30 Jan. 2013. Web. 02 Feb. 2013.

d. Date of information- January 30, 2012

3) Mortgage Rate

TOPIC: Assessment on Economic Indicators Assignment

a. Economic Indicator- the mortgage rate is usually applied to a fully amortizing mortgage loan where the interest rate either remains fixed or "floats." With single fixed rates, the individual benefits from a constant rate of interest. Floating rates however are variable and often change due to the economic circumstances prevailing during the period. Much like the prime rate, the mortgage rate can be used to encourage and discourage lending. A lower rate, as is currently prevailing today, encourages consumers to refinance or enter into fixed rate mortgages.

b. Rate of Value- 3.60%

c. Source of Information- Reddin, Tom "Insights on U.S. Mortgage Rates from Tom Reddin." Mortgage Rates RSS. N.p., 30 Jan. 2013. Web. 02 Feb. 2013.

d. Date of information- January 30, 2012

4) Treasury Bill Rate

a. Economic Indicator- Treasury Bills are the debt financing instruments of the United States government. Treasury Bills are unique as they mature in one year or less. They do not pay interest, but are instead issued at a discount to par value. Investors in general, consider treasury bills to have very limited risk as they are backed by the full faith and credit of the United States Government. Treasury Bills are also used by many large companies as a use for short-term cash or emergency funding. Low treasury rates may indicate a growing need for monetary policy to discourage savings. With low rates, savings may elect instead to consumer, or invest in higher yield securities. Low rates also help the government in regards to overall repayment. As inflation continues its upward tread, treasury bills, in many instances, offer investors will a negative real rate of return. As such, the government is able to get money today, and pay it back in depreciated dollars at a later date.

b. Rate of Value- .14%

c. Source of Information-"Resource Center." Daily Treasury Bill Rates Data. U.S. Department of the Treasury, 01 Feb. 2013. Web. 02 Feb. 2013

d. Date of information- February 1, 2013

5) Per Capita Income-

a. Economic Indicator- Per capita income usually refers to the overall average wealth of a nation. This measure is particularly useful in comparison to other nations. It is generally referred to as the income… [END OF PREVIEW] . . . READ MORE

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How to Cite "Economic Indicators" Assessment in a Bibliography:

APA Style

Economic Indicators.  (2013, February 3).  Retrieved December 4, 2021, from

MLA Format

"Economic Indicators."  3 February 2013.  Web.  4 December 2021. <>.

Chicago Style

"Economic Indicators."  February 3, 2013.  Accessed December 4, 2021.