- "An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed."
The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.
Basics of interest rates: The fundamentals of how interest rates work, including the concept of time value of money, the role of inflation, and the relationship between interest rates and bond prices.
Domestic interest rates: Understanding the interest rate system in your own country, including how the central bank sets interest rates, the relationship between banking and lending rates, and the impact of interest rates on the economy.
International interest rates: Comparisons of interest rates across different countries, including the role of exchange rates and how cross-border lending affects interest rates.
Monetary policy: The tools that central banks use to control interest rates and stimulate economic growth, including open market operations, discount rates, reserve requirements, and quantitative easing.
Economic indicators: Understanding the economic indicators that influence interest rates, including GDP, inflation, employment, and consumer confidence.
Bonds and debt securities: The basics of bond valuation, yield curves, and the relationship between interest rates and bond prices.
Risk and return: The trade-offs between risk and return when investing in debt securities, including credit risk, default risk, and interest rate risk.
Hedging strategies: Methods for reducing interest rate risk, including interest rate swaps, forward contracts, and futures contracts.
International capital flows: Understanding the impact of cross-border investments on interest rates, including foreign direct investment, portfolio investment, and foreign exchange reserves.
Policy coordination: The challenges and opportunities of international cooperation in interest rate policy, including the role of international organizations such as the IMF and World Bank.
Floating interest rate: This type of interest rate changes based on the market conditions and can fluctuate periodically.
Fixed interest rate: This type of interest rate remains unchanged for the entire term of the loan or investment.
Prime interest rate: The prime interest rate is the rate at which banks charge their most creditworthy customers for loans.
LIBOR (London Interbank Offered Rate): This is a benchmark interest rate that reflects the rates at which banks lend money to one another in the London interbank market.
Federal Funds Rate: This is the interest rate at which banks lend and borrow money from each other overnight.
Discount rate: This is the interest rate at which central banks lend money to commercial banks.
Treasury Bill rate: This is the interest rate at which the US government borrows money for a short period, typically between one to three months.
Eurodollar rate: This is the interest rate at which US dollars are deposited in banks outside of the United States.
Overnight rate: This is the interest rate at which banks lend and borrow money from each other overnight.
Swap rate: The swap rate is the rate at which two parties exchange interest payments in different currencies or at different interest rates.
Inflation rate: The inflation rate is the rate at which the general level of prices for goods and services is increasing over time.
Real interest rate: The real interest rate is the nominal interest rate minus the inflation rate, representing the true cost of borrowing or the true return on an investment.
Yield curve rate: The yield curve rate is the graphical representation of the relationship between interest rates and the maturity of debt securities.
Effective interest rate: The effective interest rate is the true cost of borrowing or the true return on an investment that takes into account all fees, charges, and compounding.
- "The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, the compounding frequency, and the length of time over which it is lent, deposited, or borrowed."
- "The annual interest rate is the rate over a period of one year."
- "Other interest rates apply over different periods, such as a month or a day, but they are usually annualized."
- "The interest rate has been characterized as 'an index of the preference . . . for a dollar of present [income] over a dollar of future income.'"
- "The borrower wants, or needs, to have money sooner rather than later, and is willing to pay a fee—the interest rate—for that privilege."
- "An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed."
- "The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, the compounding frequency, and the length of time over which it is lent, deposited, or borrowed."
- "Other interest rates apply over different periods, such as a month or a day, but they are usually annualized."
- "The borrower wants, or needs, to have money sooner rather than later, and is willing to pay a fee—the interest rate—for that privilege."
- "The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, the compounding frequency, and the length of time over which it is lent, deposited, or borrowed."
- "The annual interest rate is the rate over a period of one year."
- "Other interest rates apply over different periods, such as a month or a day, but they are usually annualized."
- "The borrower wants, or needs, to have money sooner rather than later, and is willing to pay a fee—the interest rate—for that privilege."
- "The interest rate has been characterized as 'an index of the preference . . . for a dollar of present [income] over a dollar of future income.'"
- "The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, the compounding frequency, and the length of time over which it is lent, deposited, or borrowed."
- "The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, the compounding frequency, and the length of time over which it is lent, deposited, or borrowed."
- "The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, the compounding frequency, and the length of time over which it is lent, deposited, or borrowed."
- "An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed."
- "The borrower wants, or needs, to have money sooner rather than later, and is willing to pay a fee—the interest rate—for that privilege."