Money is a commodity. Interest rates can be viewed as the cost to borrow money. Interest rates rise and fall with market demand. They are also influenced by the Federal Reserve Board which uses interest rates to stimulate the economy or slow inflation. Inflation also causes lenders to demand higher rates to loan money.
Related Fool Articles
- [link link title]
- Federal Reserve Board
- Fixed income
- Market yield
- Treasury bills
- Yield curve
Recent Mentions on Fool.com
- Could This New Billion-Dollar Industry Put Banks Out Of Business?
- 3 Money Mistakes to Avoid Once You Reach Full Retirement Age
- 3 Reasons Bank of America Is Less Profitable Than Its Peers
- Billions of Dollars Up for Grabs in New Navy Destroyer, Sub Contracts
- Why Hedge Funds Should Fear a Hillary Clinton Presidency
- Capital One's Biggest Strength Is Also Its Biggest Weakness