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5. Understanding Interest Rates

5. Understanding Interest Rates

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 Welcome to Finance ABC! I’m Emma Lai, and today we’re going to dig deep into a subject that underpins so many financial decisions: interest rates. This isn’t just a number we hear on the news — interest rates are one of the most powerful levers in finance. They influence everything from the housing market to the value of the dollar, and from credit card payments to the overall health of the economy. By understanding how interest rates work, you’ll not only make more informed financial decisions, but you’ll also get a glimpse into how economic policies shape our daily lives.

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