You are here

Interest

Interest is the "rent" paid to borrow money. Interest rates can significantly influence people's behavior. But even though individuals respond to changes in rates, they may not fully understand what interest rates represent, or how different rates relate to each other. Why, for example, do interest rates increase or decrease? And in a period of changing rates, why are certain rates higher, while others are lower?

The Federal Reserve's publication below is intended to help you better understand interest rates and how they are influenced by certain economic forces. 

Interest Rates: An Introduction (Federal Reserve Bank of New York)