Inversely proportional relationship, first of all, the interest rate represents the market risk-free rate of return, here refers to the deposit interest rate. If the risk-free rate of return increases, the rate of return of other assets will be relatively low, and the asset price will fall. In this way Only in this way can the return rate of assets be increased, and bonds are the most obvious manifestation. Secondly, an increase in loan interest rates means that the cost of borrowing money from banks has increased. If the return rate on investment cannot be increased, it will dampen enthusiasm for investment, thereby lowering asset prices. .
1: Interest rate refers to the ratio of the amount of interest to the amount of borrowed funds (principal) within a certain period of time. Interest rate is the main factor that determines the level of corporate capital costs. It is also a decisive factor in corporate financing and investment. Research on the financial environment must pay attention to the current status of interest rates and their changing trends.
Two: Interest rate refers to the ratio of the amount of interest due in each period to the face value of the amount borrowed, deposited or borrowed (called the total principal amount). The total interest on the amount lent or borrowed depends on the total principal amount, the interest rate, the frequency of compounding, and the length of time it is lent, deposited, or borrowed. Interest rate is the price a borrower pays for borrowing money, and it is the return the lender earns from lending to the borrower by delaying his or her consumption. The interest rate is usually calculated as a percentage of the one-year interest to the principal.
Three: In the modern economy, interest rates, as the price of funds, are not only restricted by many factors in the economy and society, but also changes in interest rates have a significant impact on the entire economy. Therefore, modern economists are studying When determining the interest rate, special attention is paid to the relationship between various variables and the balance of the entire economy. The interest rate determination theory has also experienced classical interest rate theory, Keynesian interest rate theory, loanable funds interest rate theory, IS-LM interest rate analysis and contemporary dynamic interest rates. The evolution and development process of the model.
Four: In terms of expression, interest rate refers to the ratio of the amount of interest to the total amount of borrowed capital within a certain period of time. Interest rate is the interest level of unit currency in unit time, indicating the amount of interest. Economists have been working hard to find a theory that can fully explain the structure and changes of interest rates. Interest rates are usually controlled by a country's central bank, in the United States by the Federal Reserve Board. So far, all countries use interest rates as one of the important tools for macroeconomic control.
Five: When the economy is overheating and inflation rises, interest rates will be raised and credit will be tightened; when the overheating economy and inflation are under control, interest rates will be appropriately lowered. Therefore, interest rates are one of the important fundamental economic factors. Interest rate is an important financial variable in economics. Almost all financial phenomena and financial assets are more or less related to interest rate.