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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...

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