interest rates

Price of money

Interest rates are the cost of borrowing money, expressed as a percentage of the principal over time.

When you take out a loan or mortgage, the interest rate determines how much extra you pay back; when you deposit money, it determines how much you earn.

Central banks set benchmark rates that influence rates throughout the economy: The Fed raised interest rates to combat inflation.

Rates affect everything from mortgage payments to credit card debt to bond yields.

borrowing

loan

Borrowed money repaid later

repayment · principal · installment · financing · affordability · creditworthiness · subprime · home equity · auto loan · student loan

economy

GDP

National output abbreviation

inflation · deflation · central bank · Federal Reserve · stimulus · expansion · contraction · macroeconomics · business cycle · consumer spending

inflation

purchasing power

Economic spending ability

hyperinflation · stagflation · deflation · quantitative easing · price stability · core inflation · indexation · disinflation · inflation hedge

investment

portfolio

Collected works or assets

capital · returns · savings · yield curve · equities · asset allocation · wealth · diversification · annuities · mutual funds

Categories
Opposites
rate level

interest rateszero interest

Complete lack of curiosity

high interest rates · free money · interest-free

financial component type

interest ratesprincipal

Chief school administrator

principal amount · face value · par value · capital · nominal value

monetary policy stance

interest ratesquantitative easing

Asset purchases to boost economy

money printing · rate cuts · rate hikes

Family

rate, interest, interested, interesting, uninteresting, interests, uninterested, disinterest, disinterested

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