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Market interest rate is a commonly used concept in economics. It is nothing but the existing interest rate that is offered on deposit of cash. It is mainly determined by demand and supply of deposits. Other factors which generally influence it are duration for which the amount is being deposited (longer the duration, more will be the rate) and the quantity of the amount (higher the amount, higher will be the rate). The important concepts related to the topic are real and nominal interest rate, interest rate swap, interest rate risk, etc.
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