School of Economics | Theories of Interest/Why is Interest Paid?
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20 Feb

Posted at 00:28h in SOE by
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  There are various theories which have been put forward from time to time as to why the interest is paid. The most important theories are:   (1) Productivity Theory of Interest.   (2) Abstinence or Waiting Theory of Interest.   (3) Austrian or Agio Theory of Interest.   (4) Loanable Fund Theory of...