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Define What Economists Mean by the Term Interest Rate

question 34

Essay

Define what economists mean by the term interest rate.


Definitions:

Default Free

An investment that is considered to have no risk of failure to pay back principal or interest.

CGB Futures

Futures contracts based on Canadian Government Bonds, which allow investors to speculate on or hedge against future changes in the value of these bonds.

Quoted Price

The current price at which an asset or service can be bought or sold, often provided in financial markets or by vendors.

Natural Hedge

A transaction between two counterparties where both parties’ risks are reduced.

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