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Glossary

Terms4 shown

Interest RatesThe interest rate is the ratio of interest to principal and may indicate the cost of borrowing or the return on lending funds and investments.
Expansionary Monetary PolicyA policy that stimulates economic growth and reduces unemployment by increasing the money supply, lowering interest rates, and other measures.
Contractionary monetary policyA policy that curbs excessively rapid economic growth and inflation by reducing the money supply or raising interest rates.
Monetary PolicyPolicies formulated and implemented by the authorities to regulate a country's money supply and interest rates.

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Definition

Interest Rates

The interest rate is the ratio of interest to principal and may indicate the cost of borrowing or the return on lending funds and investments.

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