THE CORRELATION BETWEEN CASH POSITION OF TIME DEPOSITS TOWARD TIME DEPOSIT INTERESTS AND INFLATIONS (CASE STUDY OF COMMERCIAL BANKS DURING PERIOD OCTOBER 2007 – MARCH 2010)

Abstract

This research is carried out to know the effect of time deposit interest and inflations toward cash position of time deposit during period from October 2007 until March 2010. This research used secondary data such as time deposit, time deposit interest and also inflation. These data are limited and only used data 30 monthly period from Bank Indonesia website.

The research is using simple regression analysis using SPSS student version 16 to process the secondary data to find correlation between independent and dependent variable. The results that we get from SPSS are in form of Correlation (R), Coefficient of determination (R square), Significance (ANOVA) and also Normality (F-Test).

This correlation is used to know the relation of these variables either strong or not. CD is used to measure how much percent these variable affected each other variable. F-Test is used to see the factors that individually significant or not between independent and dependent variable.

This analysis showed that the partial correlation time deposit interest and inflations toward time deposit are strong. Whereas the correlation between inflations and time deposit is strong but the correlation between time deposit interest and time deposit is weak. So after the analysis of these data finish, I can conclude that not only internal factors like interest rate and inflation that influences time deposit but also external factors also like politic and environment condition.