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Base Interest Rate
The minimum interest rate set by a central bank for lending to other banks, used as a benchmark for interest rates on loans and mortgages.
Pure Rate
The interest rate that reflects only the time value of money.
Liquidity Risk Premium
The additional return demanded by investors for holding assets that are not easily convertible into cash without a significant loss in value.
Savings Equals Investment
A principle in macroeconomics indicating that within an economy, total savings in a period must equal total investments.
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