Free Version

Review Topics
Practice Exams
I know there might be distractions in the testing facility (hellooooo bison cows), but try to keep your eyes on the prize.

Interest Rates

Interest Rates

"Interest rates. It's kinda like rent on your money. The Fed adjusts its monetary policy to say that the right number for super-safe banks who are Federal Reserve System members to borrow money from other super-safe banks is, say, 3.5%. Great. Banks borrow all the time. They're pros. No risk. And they work in short borrowings, meaning they pay the money back every day, more or less.

"Now, if you're going to loan money to a corporation, that's a little riskier. The best, safest corporations...

Looking for more? Why is this annoying box in the way? It's because you haven't paid for the course yet!

Next: Reading the Tea Leaves  
  Prev: A Little Bit About Inflation

*Securities is a registered trademark of the College Board, which was not involved in the production of, and does not endorse this product.