Interest rates are a fundamental aspect of the financial world that influences borrowing, lending, investing, and overall economic activity. Yet, many people find interest rates complex and bewildering. In this article, Kavan Choksi will demystify interest rates, explaining what they are, how they work, and their significance in the broader economic landscape.
What are Interest Rates?
Interest rates represent the cost of borrowing money or the return on lending money. When you borrow funds, you pay interest to compensate the lender for the risk of lending you the money. Conversely, when you lend money, you earn interest as compensation … Read the rest