What Are Interest Rate 'Caps' and 'Floors

question 48

Essay

What are interest rate 'caps' and 'floors'?

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Definitions:

Substitutes

Goods or services that can replace each other in usage, where an increase in price of one leads to an increase in demand for the other.

Price Elasticity

An appraisal of how demand levels are impacted by price changes of a good.

Movie Streaming

The practice of watching movies over the internet without downloading them, typically through subscription services or on-demand platforms.

Movie Theater

An entertainment venue designed for the exhibition of films, where audiences can watch movies on a large screen.