In all the economies there are persons and institutions that have savings surpluses to which they are met like lenders. Of equal way, there exist others that have needs for funds for expenses and investment and that are known like borrowers. The money that the lenders transfer the borrowers has a price, which normally is established in percentage terms on the given quantity and during a certain time.
The money as such also has his market and as on all the markets, his demand and his offer they are regulated across the prices.
Then, the holder of a sum of money will want to obtain the maximum possible profitability for his capital, in accordance with the opportunities of investment of the same one. Therefore the money has a price that is known like interest rate, which is the value that is paid for the use of the money.
Normally, shorter the it is the term the more low is the interest rate, since the money is less time in hands of his original owner and the risk that the lender runs it is the minor (so much of non-payment as of needing the above mentioned money big enough for another thing).
The interest rate is key, since joined in the term of the loan, it determines the entire quantity of the loan and, therefore the monthly quota that goes away to pay for his amortization during the above mentioned term.
The most common interest rates are:
- I activate: they are named active because there are resources in favor of the banking. Here, in accordance with the conditions of market and the dispositions of the central bank, the banking houses charge for the different types of credit services from the users of the same ones.
- debit: it constitutes the percentage paid to the one who deposits money to a banking institution by means of the instruments that for such an effect exist.
- preferential: a percentage lower than the "normal" or general one who recovers to the loans destined for specific activities that it already wants to promote is for the government or a financial institution.
- real: resultant percentage of deducing to the current general money-market rate the inflation valuation.
- day pupil: price that is paid for the use of external capital. It expresses itself in annual percentage, and it is established by the countries or institutions that grant the monetary and financial resources
- interest rates of mortgages: the mortgage loans are granted usually to interest rates lower than that of the normal credits for being destined for the housings acquisition and having the proper housing acquired by guarantee.
- face-value: in him the inflation valuation is not deducted.
- real: interest rate corrected to bear in mind the effects of the inflation. The valuation of awaited inflation usually measures itself for the difference between the nominal interest rate less.
- interbank: interest rate that the banks apply after money is exchanged between themselves.
- officer: rate of the loans that the Central Bank grants to the credit companies.
The interest rate does part of the economic politics used by the persons in charge of the decisions of monetary policy of the certain state, for the attainment of certain targets and for the impulse of the economy.
Written for: Publishing house smartforextips.com