Economics and Business Economics
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Active Interest Rate Author: Paulo Nunes (Economist, Professor and Business Consultant) Contributions: without contributions ... if you are an expert in this field help us to enrich our site ... contact us knoow.net@gmail.com Date Created: 25/05/2011 Summary: Active Interest Rate refers to the interest rate charged by the banks for the money lent to their clients... see full article Key words: Economics, Comment or read other comments on this article |
Active Interest Rate |
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Active Interest Rate Concept Active Interest Rate refers to the interest rate charged by the banks for the money lent to their clients. Designates by active because focuses on the banks Active accounts (in the view of the banks, the loans given are an Active). The bigger the difference between this rate and the interest rate paid by its own funding (passive interest rate), the bigger the bank profit in its activity of financial intermediation.
Translated from Portuguese by Susana Saraiva, Portuguese-English and English-Portuguese translation specialist. Contact: spams@sapo.pt.
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