Who invented interest rates?

Answer The history of interest rates goes back thousands of years to the time of ancient Greece and the biblical Old Testament. No recorded data clearly identifies the first society to begin the practice... Read More »

Top Q&A For: Who invented interest rates

Why does the Fed cut interest rates?

The Federal Reserve System--the "Fed," for short--uses interest rate reductions to stimulate economic activity. The Fed's influence over interest rates is one of its most powerful tools.The FedThe ... Read More »

How are ee bond interest rates set?

Series EE savings bonds are guaranteed by the U.S. Government to pay interest and principal. Interest rates are set twice per year, depending on calculations formulated by the Treasury Department.D... Read More »

What happens when the Fed raises interest rates?

The Federal Reserve System was created by Congress in 1913 to regulate U.S. Commerce. Perhaps its most important duty is setting the Prime Rate. This is the level of interest banks charge each oth... Read More »

How are interest rates calculated?

Interest rates are calculated different ways, depending on the type of interest. Interest on a loan, such as a mortgage, is based on a shrinking balance. Interest on a CD, savings account or other ... Read More »