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

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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?

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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
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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?

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