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Interest, price for the surrender of money

The interest is the price for 'rent' for the surrender of money or real values over a certain time period. The functions of the interest are payment for a loan, the safeguarding of the repayment risk (risk prize) or the Pauschalierung of damages (accumulated interest).

Also yields and appreciations of shares, a part of the success commissions for investments, are fitting investment income broadly to the interest in the further sense. Interest therefore must agree in this case (interest receivable) but can also be merely expected (earnings per share).

In the economics, there are following explanation bases for the interest:

- In the time of preference: also at inferior inflation and out of stock risk.

- Inflation balance: At inflation, the value of his/its money quantity should not sink.

- Risk prize: There is the risk that is not repaid completely or can become.

- Lack prize: Reimbursement for the in the time of-expels renuncuation of consumption - as well as Investment expenditures. The lack prize represents the price, for which the supplier of liquidity is ready, to give up the immediate consumption of the liquidity.