Greetings all,
I am trying to understand just what exactly interest rates mean. The United States has an interest rate of 5.25%, but what type of investment actually earns this amount of interest? Where could I invest my money to get a 5.25% return?
Also what about the interest rates of other countries besides the United States, could I invest there? For example New Zealand has an interest rate of 7.25%. Could I exchange my US dollars for New Zealand dollars and get a 7.25% return on my money? I imagine it can’t be this simple, but could someone please explain exactly how this works.
Thanks
I am trying to understand just what exactly interest rates mean. The United States has an interest rate of 5.25%, but what type of investment actually earns this amount of interest? Where could I invest my money to get a 5.25% return?
Also what about the interest rates of other countries besides the United States, could I invest there? For example New Zealand has an interest rate of 7.25%. Could I exchange my US dollars for New Zealand dollars and get a 7.25% return on my money? I imagine it can’t be this simple, but could someone please explain exactly how this works.
Thanks