Deflation
The opposite of inflation is deflation. Deflation is a decline in general price levels. This condition
usually manifests itself in periods of decline and depression. Product prices are higher, but people don't
have enough money to buy them. Significant deflation was observed abroad during the Great
Depression of the 1930s. For example, between 1929 and 1933, prices fell by approximately 25%.
Deflation can be manifested in the sale of special goods. In recent years, the price of computers and
other electronic devices has decreased significantly compared to advanced technologies.
Interest rate
Simply put, the interest raterepresents the price of money. Like anything else, money has a price.
Interest rate is very important in business activity.
Borrowing companies and countries may suffer from interest rates. Higher interest rates mean higher
business costs. As a buyer, you are also affected by the interest rate. The amount of interest (profit) you
receive as an investor or saver is reflected in the current interest rates. Such buyers also borrow money.
People with low credit scores pay higher interest rates than those with high scores.
Interest rate types of foreign countries
PercentMany types of rates exist in every economy. These rates represent different prices in different
environments. Some of the interest rates are given below:
• Base rate- it is offered by banks for the best buyers - large corporations.
• Account rate-Percentage of loans granted by the Federal Reserve Bank to the funds
of Financial Institutions
• T-ticket rate- Short-term interest rates (13 weeks) on US government bonds.
• Long term rate- US government bond, long term (up to 30 years) interest amount.
• Mortgage rate –Loan percentage for new home.
• Corporations rate- A loan for large corporations in the USA
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