A borrower applies for a 200,000 yuan loan from a bank, and the annual interest that needs to be repaid is 10,800 yuan. Bank loan refers to an economic behavior in which a bank lends funds to those in need of funds at a certain interest rate in accordance with national policies and agrees to repay the funds within an agreed period.
Generally, you are required to provide a guarantee, a house mortgage, or proof of income, and have a good personal credit report before you can apply. Moreover, in different countries and in different development periods of a country, the types of loans classified according to various standards are also different. For example, industrial and commercial loans in the United States mainly include ordinary loan limits, working capital loans, standby loan commitments, project loans, etc., while industrial and commercial loans in the United Kingdom mostly take the form of bill discounts, credit accounts, and overdraft accounts.
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. The interest rate is the ratio of the amount of interest due each period on the amount borrowed, deposited or borrowed (called the total principal) to the face value. 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.
2. Changes in interest rates Generally speaking, interest rates vary according to the measurement term standard, and are expressed in annual interest rates, monthly interest rates, and daily interest rates. 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 pay special attention to various factors when studying the determination of interest rates. The relationship between variables and the balance of the entire economy, the interest rate determination theory has also experienced the evolution and development process of classical interest rate theory, Keynesian interest rate theory, loanable funds interest rate theory, IS-LM interest rate analysis and contemporary dynamic interest rate models.
3. Keynes believed that savings and investment are two interdependent variables, not two independent variables. In his theory, the money supply is controlled by the central bank and is an exogenous variable with no interest rate elasticity. At this time, currency demand depends on people's psychological "liquidity preference." Keynes regarded interest rates as The interest rate theory of loanable funds that came about is the interest rate theory of the neoclassical school, which was proposed to modify Keynes's "liquidity preference" interest rate theory. To a certain extent, the loanable funds interest rate theory can actually be seen as a synthesis of the classical interest rate theory and Keynesian theory.
4. The famous British economist Hicks and others believed that the above theory did not take into account the factor of income and therefore could not determine the interest rate level. Therefore, in 1937, they proposed IS-LM based on the general equilibrium theory. Model. This establishes a theory that interest rates and income are determined simultaneously under the interaction of four factors: savings and investment, money supply and money demand. According to this model, the determination of interest rates depends on four factors: savings supply, investment demand, money supply, and money demand. Factors that lead to changes in savings investment and money supply and demand will affect the interest rate level.