Interest rates that are determined in the open market by supply and demand, as opposed to being set by the Federal Reserve Board.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Interest rates determined by the prevailing supply and demand for money rather than according to some benchmark, such as LIBOR, or by some government organization, such as the Federal Reserve.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved