INTEREST Introduction Capital is one of the factor of production
and entrepreneur or owner of capital can use capital for some
productive purpose . However when owner of capital obtains himself
from use of capital he expects some reward for this abstinence .
Here the concept of interest comes in picture. Definitions Interest
is the return from the fund of capital --- Celigeman Interest is
the premium which has to be offered to include people to have their
wealth in some form other than horded money .it is reward of
parting --- Keynes Factor Affecting Rate of InterestDemand for
capital Transaction motive Precautionary motive Speculative
motivePurpose of borrowingTime period of borrowingType of security
offeredStatus of BorrowerProductivity of capitalCompetition in
marketDegree of capital
