Variable interest rate


 

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Variable Interest Rate

An interest rate which fluctuates as the prevailing rate moves up or down. In mortgages there are usually maximums as to the frequency and amount of fluctuation. Also called "flexible interest rate."

Variable interest rate

A loan rate that moves up and down based on factors including changes in the rate paid on bank certificates of deposit or Treasury bills.

Variable interest rate

Interest rates offered by banks and financial institutions on loans or deposits which are liable to change according to circumstances. For example a movement in the interest rate set by the government would usually be an influence.

Variable interest rate

See: Adjustable rate



Variable interest rate

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Exogenous variable

Exogenous variable

A variable that is taken as given by an economic model. It therefore is subject to direct manipulation by the modeler. In most models, policy variables such as tariffs and par values of pegged exchange rates are exogenous. Contrasts with endogenous variable.


Dependent variable

Dependent variable

Term used in regression analysis to represent the element or condition that is dependent on values of one or more other variables.


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Variable Ratio Write

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Exogenous variable

Exogenous variable

A variable whose value is determined outside the model in which it is used. Related: Endogenous variable


Variable rate certificate

Variable rate certificate

A certificate of deposit whose interest rate varies and is dependent on an influence such as prime rate.


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