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Who regulates interest rates?
To a certain extent the banks do. But the Fed, which lends money to banks, can have an impact on it depending on what interest they charge the banks.
Does banks charge simple or compound interest on overdraft?
compound
Prime rate?
interest rate banks charge their best customers
What is the meaning of reverse repo rate?
repo rate - is the interest rate that reserve bank use to charge commercial banks repo rate - is the interest rate that reserve bank uses to charge commercial banks
Why do banks give interest on deposit?
Banks make money by lending money to people and charging people for borrowing. The amount banks charge is called interest. Banks borrow money from other people and pay them interest on the amount borrowed. Banks charge more interest on the money they lend than they pay one the money they borrow. That is how they make money. When people deposit money with a bank, the bank is literally borrowing money from some people so they can lend it to other people. That is why banks pay interest.
When financial institutions lend money they charge borrowers?
The banks or lenders charge interest. The amount depends on your credit.
Who determines the interest rate banks charge for loans?
The central bank does not directly determine the rates but the rates that it fixes like the Repo rate, Cash reserve ratio etc have a direct impact on the rates banks charge. When the repo rate is less and CRR is less then banks charge a lesser rate of interest and vice versa.
How do banks make money when it pays interest on deposits?
They charge a much higher interest on loans than they pay on deposits.
What is the best or lowest interest rate commercial banks charge their customers?
prime rate
The interest rate banks charge each other on overnight loans?
Federal Funds Rate
What is The rate of interest banks charge on short-term loans to their best customers is the?
usn comm
What is the the rate of interest banks charge on short term loans to their best customers?
usn comm
