The Economics of Money and Banking Chapter 4 Interest and Interest Rate >>Types of Interest Rates 1 C:Official,pact and market interest rates Interest Rate Official interest rate is the rate set by the central banks or monetary Understanding Interest and authorities ■ Pact interest rate is the rate set by the non-government authorities, such as trade union ■ Market interest rate is the rate wholly determined by the demand for and supply of funds in the financial markets at a certain time. 10 GUO YING SEM TONGJI UNIVERSITYThe Economics of Money and Banking 10 GUO YING SEM TONGJI UNIVERSITY 1 Types of Interest Rates  Official interest rate is the rate set by the central banks or monetary authorities  Pact interest rate is the rate set by the non-government authorities, such as trade union  Market interest rate is the rate wholly determined by the demand for and supply of funds in the financial markets at a certain time. Chapter 4 Interest and Interest Rate Interest Rate Understanding Interest and C: Official , pact and market interest rates