Abuses based on the deficit of information in financial markets: the case of presenting the interest rate in basic financial offers. (14th October 2020)

• Record Type: Journal Article
• Authors: Frączek, Bożena
• Is Part Of: International journal of monetary economics and finance. Volume 13:Number 5(2020)
• Page Start: 502
• Page End: 512
• Publication Date: 2020-10-14
• Subjects: abuse in financial markets -- deficit of information -- financial inclusion -- interest rates -- APR -- annual percentage rate -- financial education -- consumer protection -- personal finance management; Monetary policy -- Periodicals; Finance -- Periodicals; Economics -- Mathematical models -- Periodicals; 332.4
• Languages: English
• ISSNs: 1752-0479

Abstract

The paper touches the problem of abuse in financial market in form of lack of transparency of information regarding financial terms of basic financial offers: deposits and credits. The research confirmed the discrepancy between the important role of the interest rate determining the financial behaviours and a lack of understanding of its essence. Case studies and analysis confirm that this may result in providing the incomplete or inaccurate information regarding interest rates influencing financial decision making.