market interest rate
Definitions (2)
1. Deposits: Prevailing rate of interest offered on cash deposits, determined by demand and supply of deposits and based on the duration (longer the duration higher the rate) and amount (higher the amount, higher the rate) of deposits.
2. Loans: Prevailing rate of interest on loans determined by the demand and supply of credit and based on the duration (longer the duration, higher the rate) of loan and type of security offered (higher the quality of security, lower the rate).
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