Interest Rate
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Interest Rate

the rate of interest for loaning money, the ratio of the amount of income from a loan to the total loan.

In precapitalist formations, usurious credit was the basic form of credit, and if no special legislative restriction existed in a country, the interest rate had virtually no limit. Under capitalism, the interest rate fluctuates within the average profit rate, depending on the supply and demand for loan capital. Nowadays, it is also influenced by inflation processes, international flows of capital, the state-monopoly regulation of credit, and other factors. Under socialism, the interest rate is set by the state in a planned manner and is not subject to spontaneous fluctuations.

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Interest Rate (redirected from rate of interest)

Interest Rate
(redirected from rate of interest)