Interest rate is the price of the money. .Interest rates are the most pervasive element in the financial market. Interest works both ways. .You earn interest when you save and you pay interest when you borrow
5. 1 The Government Bond Market 5.1.1 when the government runs a deficit, it has to get the funds. There are three ways for the government to get funds
8.1 Definition of Monetary Policy Government policy concerning money and credit conditions, especially the rate of growth in the money supply and the level of interest rates
6. 1 The Nature of Financial Intermediation 6. 2 Depository Financial Institutions The deposit liabilities of these institutions form the cornerstones of the money supply. Generally speaking, commercial banks are the largest depository institutions