Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. what is an interest rate? explain how interest rat

What is an interest rate? Explain how interest rates may be unrelated to money or financial...

60.1K

Verified Solution

Question

Finance

What is an interest rate? Explain how interest rates may beunrelated to money or financial assets? How are interest rates aredetermined? Why do we observe a number of interest rates in theeconomy rather than a single interest rate? What are some of thereasons interest rates vary?

Answer & Explanation Solved by verified expert
4.1 Ratings (861 Votes)
The interest rate is the amount that is charged as of the principal amount of a loan by the lender for using his money by the borrower In simpler terms it can be said that a interest rate is the charge that a borrower pays for using the money of lender The rate of interest charged is usually not determined by the amount of financial asset or the money that is being lent it is rather    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

What is an interest rate? Explain how interest rates may beunrelated to money or financial assets? How are interest rates aredetermined? Why do we observe a number of interest rates in theeconomy rather than a single interest rate? What are some of thereasons interest rates vary?

Other questions asked by students

Q

Lab-Freezing point experiment: 1. How did thewater freeze when surrounded only by saltwater? 2. Describe your findings? 3 Why...

Biology
Q

Describe the advantages and disadvantages of using a regulated lender such as a bank or credit...

Finance
Q

Given the benefits of Continuous Improvement techniques like Six Sigma and Lean, why is it that...

General Management
Q

D A measure of how well the enzyme binds the substrate B A The catalytic...

Biology
Q

Sick computers Let be the event that a computer contains a virus and let W...

Statistics
Q

i need to solve this problem ...

Accounting
Q

Take me to the text Glada Company has 2,200 units of beginning inventory in their...

Accounting
Q

when comparing companies like coca cola and Pepsi co, what conclusions can be drawn concerning...

Accounting
Q

1. El asiento de diario para registrar la emisin de un pagar a un acreedor...

Accounting
Q

The balance sheet contributes to financial reporting by providing a basis for all of the...

Accounting
Q

What percentage of employee contributions are vested from the beginning?

Accounting
Q

Fraser Co. is considering a change to its cost structure. Below is the data relating...

Accounting