Active Interest Rate

Active Interest Rate Concept: Active Interest Rate refers to the interest rate charged by the banks for the money lent to their clients. Designates by…

Active Interest Rate Concept

Active Interest Rate refers to the interest rate charged by the banks for the money lent to their clients. Designates by active because focuses on the banks Active accounts (in the view of the banks, the loans given are an Active). The bigger the difference between this rate and the interest rate paid by its own funding (passive interest rate), the bigger the bank profit in its activity of financial intermediation.

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