Examlex
Contrast the liquidity premium theory to the market segmentation theory of the term structure of interest rates.
Shortage
A situation where the demand for a product or service exceeds the supply available at a specified price.
Usury Law
Legislation that sets maximum interest rates that can be charged on loans, to prevent excessive interest.
Market Equilibrium
A market state where the quantity supplied equals the quantity demanded, leading to a balance in price and volume.
Interest Rate
The cost of borrowing money expressed as a percentage of the total amount borrowed.
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