Editing Interest rate (section)

==Influencing factors==
Interest rates vary according to:
* the government's directives to the [[central bank]] to accomplish the government's goals
* the [[currency]] of the principal sum lent or borrowed
* the term to maturity of the [[investment]]
* the perceived default probability of the borrower
* [[supply and demand]] in the market
* the amount of collateral
* special features like call provisions
* reserve requirements
* compensating balance

as well as other factors.