You have probably come across too many articles on “Fed cuts interest rates” on your daily commute to school or work. You know what interests are – you borrow a sum of money at first, and at the end, you must return the same sum of money plus a fee, this fee is known as “interest”. The lender can make money by collecting the fee you paid for the privilege of borrowing money. However, have you wondered how interest rates work? Does an increase or decrease in interest rates be beneficial or disadvantageous to you?
In this article, we will explain how interest rates affects us, and why do some countries have negative interest rates. Financial system work in the world (or Singapore at least)
Whenever you need money, you can go to a bank and request for a loan, but when banks need money they need to borrow from...