two decimal places.

the bank's interest calculation rule is: no interest is calculated for less than RMB, and no interest is calculated for less than RMB.

that is to say, the starting point of interest calculation is RMB yuan, and no interest is calculated for the cents below RMB yuan. The interest amount is calculated to the decimal point, and rounded to the nearest mantissa.

< According to the principle of time preference, consumers will prefer current goods to future goods, so there will be positive interest rates in the free market.

2. Expected inflation

Inflation will occur in most economies, which means a certain amount of money, and fewer goods can be purchased in the future than at present. Therefore, the borrower needs to compensate the lender for the losses during this period.

3. Alternative investment

Lenders have the choice to put their money on other investments. Due to the opportunity cost, lenders lend money, which is equivalent to giving up the possible returns of other investments. Borrowers need to compete with other investments for this fund.

4. Investment risk

The borrower is at risk of bankruptcy, absconding or non-repayment of debts at any time, and the lender needs to collect extra money to ensure that compensation can still be obtained under these circumstances.

5. Liquidity preference

People prefer that their funds or resources can be traded immediately at any time, instead of taking time or money to get them back. Interest rate is also a kind of compensation for this.

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