Interest Rates (Edexcel A-Level Business): Flashcards

Price of borrowing or saving money

Percentage of amount borrowed or saved

Use of interest rates to control the economy

Interest rate that can be changed by lender at any time

Interest rate constant over the loan term

Around 15%

0.5%

Goods used over long period (cars, furniture, appliances)

Reducing inventory levels

Total demand for goods and services in the economy