An experienced financial advisor, Mark Sessanta is the CEO and founder of Pennsylvania-based Stark Financial Group. Also involved in the financial committee at Cornerstone Church, Mark Sessanta has past experience as a director of advanced planning with the Independence Planning Group and a financial specialist at East Penn Financial. With a comprehensive focus on financial planning and wealth management for clients, Mr. Sessanta is well-versed on a variety of factors that impact wealth, including interest rates.
Generally defined as the cost of borrowing money, an interest rate also is the monetary benefit for the risk assumed by the individual or institution that lends the money. The borrower is paying for the convenience of being able to spend money immediately. This is often referred to as credit.
Interest rates are affected by several factors, with supply and demand being the driving force behind these rates. As demand for borrowing money increases, interest rates increase as well. Inflation is another major factor, and as inflation rises, and purchasing power decreases, interest rates rise to compensate lenders. Finally, the government has a major impact as well, as monetary policy decisions are made at this level through the buying and selling of federal securities that affect the market.
Generally defined as the cost of borrowing money, an interest rate also is the monetary benefit for the risk assumed by the individual or institution that lends the money. The borrower is paying for the convenience of being able to spend money immediately. This is often referred to as credit.
Interest rates are affected by several factors, with supply and demand being the driving force behind these rates. As demand for borrowing money increases, interest rates increase as well. Inflation is another major factor, and as inflation rises, and purchasing power decreases, interest rates rise to compensate lenders. Finally, the government has a major impact as well, as monetary policy decisions are made at this level through the buying and selling of federal securities that affect the market.