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Moody's had warned RBS last month that it was considering downgrading its debt, which is effectively a corporate credit rating and determines the interest rate at which businesses can borrow.
Bank's zero profit condition implies that (r) (borrowing rate of interest) and (R) (deposit rate of interest) should satisfy begin{aligned} r-c_F=R, end{aligned} (2 where the unit cost of monitoring (c_F) endogenously determines the interest rate spread, or in other words the efficiency of the financial sector, in the economy.
Ask an economist what determines the interest rate, and she'll probably mutter something about supply and demand or "market forces". Ask the same economist what determines the level of saving and investment, and the answer probably won't change very much.
IT DETERMINES the interest payments on almost half of flexible-rate mortgages in America and underpins financial contracts worth an estimated $300 trillion worldwide.
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The early stages of the game involve a lot of small talk and flirting with your A.I., where the player determines the interests of the character and tries to develop a sense of compatibility.
There's two different things determining the interest rate.
The results suggest that existing knowledge determined the interest change.
Whatever the amount the sellers finance, they assume the role of a bank, checking credit history, determining the interest rate and drafting a mortgage agreement.
In equilibrium, the interaction between the demand for loanable funds and the supply of loanable funds determine the interest rate.
This survey was designed to determine the interest of primary care patients in participating in program designed to maximize enjoyment.
Bond yields, which determine the interest rate for government borrowing, rose as France snubbed the EU call for more austerity measures, saying the country's latest round of belt tightening would be enough to bring its deficit within EU limits.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com