Interest rate refers to the ratio of interest amount to total borrowed capital within a certain period. Interest rate is the interest level of unit currency in unit time. Interest rate is also generally called interest rate. Current bank interest rates generally include loan interest rates; deposit interest rates; mortgage interest rates, etc.

Detailed explanation of home loan interest rates

Interest rates are also commonly called interest rates. Today's bank interest rates usually include borrowing interest rates; deposit interest rates; mortgage interest rates, etc.

It indicates the ratio of interest to principal within a certain period, usually expressed as a percentage, and is called the annual interest rate when calculated annually. The accounting formula is: interest rate = interest amount/principal.

Interest rate refers to the ratio of the interest amount to the total loan cost within a certain period of time. Interest rate is the interest level of unit currency transaction within unit time.

The "classical school" believes that interest rate is the quotation of capital, and the supply and demand of capital determine the change of interest rate; Keynes regarded interest rate as "Using the Value of Money Transactions". Marx believed that interest rate is a part of surplus value and a manifestation of the participation of loan capitalists in the distribution of surplus value.

Interest rates are usually controlled by the country's central bank, such as my country's Bank of my country. But in the United States it is managed by the Federal Reserve Board. Today, all countries use interest rates as one of the primary tools for microeconomic control.

When the economy overheats and inflation rises, interest rates will be raised and credit will be tightened; when the overheated economy and inflation are under control, interest rates will be appropriately lowered. Therefore, interest rate is one of the first basic 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 rates. At that time, countries around the world frequently used interest rate levers to implement micro-control. Interest rate policies have become the primary method used by central banks to regulate the supply and demand of currency transactions and thereby regulate the economy. The interest rate policy plays an increasingly important role in central bank currency transaction policies. Reasonable interest rates are of great significance to reflect social credit and the economic leverage of interest rates, and the calculation method of reasonable interest rates is a question we are concerned about.

The level of the interest rate determines the amount of interest earned on a certain amount of loan capital within a certain period of time. The factors that affect the interest rate mainly include the marginal productivity of capital or the supply and demand relationship of capital.

In addition, there is the length of time committed to currency transactions and the degree of risk assumed. The interest rate policy is the main measure of Western micro monetary policy. In order to intervene in the economy, the government can directly adjust currency by changing the interest rate. During a recession, interest rates are lowered, the supply of currency transactions is expanded, and economic development is affected. During the period of expansion, interest rates are raised, the supply of currency transactions is reduced, and the vicious development of the economy is restrained.

Modify several interest rate theories in this paragraph

From the borrower's point of view, interest rate is the unit cost of using capital. It is the borrower's use of the borrower's currency transaction capital to borrow money. The quote paid by a person; from the borrower's point of view, the interest rate is the rate of return the borrower receives for lending the currency transaction capital. If i is used to represent the interest rate, I is used to represent the interest amount, and P is used to represent the principal, the interest rate can be expressed by the formula: i=I/P

The interest rate is different according to the measurement period standard, and the expression method is year. Interest rate, monthly interest rate, daily interest rate.

In the modern economy, interest rates, as the quotation of funds, are not only restricted by many factors in the economy and society, but also changes in interest rates have a serious impact on the entire economy. Therefore, modern economists are studying the impact of interest rates. When solving problems, special attention is paid to the relationship between various variables and the balance of the entire economy. The interest rate decision theory has also experienced the classical interest rate theory, Keynesian interest rate theory, loanable funds interest rate theory, IS-LM interest rate analysis and modern dynamic interest rate models. Evolution and development process.

Keynes believed that savings and investment are two interdependent variables, not two independent variables. In his theory, the supply of money transactions is controlled by the central bank and is an exogenous variable with no interest rate elasticity. At this time, currency trading needs depend on everyone's psychological "liquidity preference".

The loanable funds interest rate theory that then occurred was 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 regarded as a synthesis of the classical interest rate theory and Keynesian theory.

The famous British economist Hicks and others believed that the above theory did not consider the factor of income and therefore could not determine the interest rate level. Therefore, in 1937, they proposed the IS-LM model based on the normal equilibrium theory. This establishes a theory that interest rates and income are determined together under the interaction of four factors: savings and investment, currency transaction supply, and currency transaction demand.

According to this model, the determination of interest rates depends on four factors: savings supply, investment demand, currency transaction supply, and currency transaction demand. Factors that cause changes in the supply and demand of savings investment and currency transactions will affect the interest rate level. This theory is characterized by usual equilibrium analysis. This theory organically combines the commodity market equilibrium of classical theory and the currency trading market equilibrium of Keynesian theory under a closely contrasting theoretical framework.