The Law Dictionary

Featuring Black’s Law Dictionary Free Online Legal Dictionary 2nd Ed.

What is MARKET INTEREST RATE

1. Prevailing cash deposits interest rate offered. Deposits’ demand and supply, deposit duration, and deposit amount determine the rate: the longer the duration and the higher the amount, then the higher the rate. 2. Prevailing loan interest rate offered. Credit demand and supply, loan duration, and quality of the collateral asset determine the rate: the longer the duration, the higher the asset quality, then the lower the rate.

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