An analysis on the effects of economic indicators on the movements of real interest rates of the Philippine 91-day treasury bill

Date of Publication

2007

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Management of Financial Institutions

Subject Categories

Finance and Financial Management

College

Ramon V. Del Rosario College of Business

Department/Unit

Financial Management

Defense Panel Member

J. Enrik De Guzman
Malu Caraig

Abstract/Summary

The study analyzed the effects of economic indicators on the movement of the real interest rate of the Philippine 91- Day Treasury Bill. This paper identified which among the selected economic variables significantly affect the real interest rates of the said instrument.

In this study, the researchers aimed to (1.) determine through the use of regression the effect of the economic indicators on the real interest rate of the Philippine 91-day Treasury bill, (2.) determine which among the selected economic indicators significantly affect the real interest rate of the Philippine 91-day Treasury bill, (3.) measure through the coefficients of the economic indicators, as evident in the regression equation, the level of effect that each economic indicators have on the movements of the real interest rate of the Philippine 91-day Treasury bill, (4.) establish and use a regression equation in predicting the real interest rate of the Philippine 91-day Treasury bill, and (5.) generate a statistical test that would conclude whether the economic indicators' level of effect on interest rates in other countries is the same as to that of the Philippines. The researchers limited their study to five economic indicators which are the inflation rate, gross national product, money supply, required reserves and dollar peso exchange rate. These variables were chosen based from theories and considerable studies made in the past.

The researchers used multiple regression in examining the effects of the mentioned economic indicators to the real interest rate. Results showed that from the five variables chosen, inflation rate and money supply were the significant variables in determining real interest rates.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU14174

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

55 leaves : ill.; 28 cm.

Keywords

Treasury bills--Philippines; Treasury bills--Prices-- Philippines; Interest rates--Philippines

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