Interest Rate And Interest Rates

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1.1 Background of the Study Interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited or borrowed (called the principal sum). The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, the compounding frequency, and the length of time over which it is lent, deposited or borrowed (Wikipedia). Interest rate as policy instrument can be used to foster meaningful macroeconomic stability,the rate of interest exacts its influence on the macro economy by transmitting through savings, investment, output, employment, money supply and balance of payment. As a return on investment in financial assets, interest rate serves as…show more content…
The country 's agricultural products is divided into two main groups: food crops and cash crops produced for home consumption and exports. The special interest of Government in the Agricultural sector is due to its relevance in the provision of raw materials for industries and most importantly the provision of food for the teaming population of Nigeria. (Akiri and Adofu 2007). Basically, agriculture provides 65% employment opportunities for the population to reduce poverty and contributes to the growth of the economy (Okoro, 2011). The development of agriculture in Nigeria has been slow despite the various agricultural policies. In fact, the government recognized the unhealthy condition(such as lack of access to technology, lack of access to farm inputs, lack of financial empowerment, high risk etc.) of Nigerian agricultural sector since 1970, and has formulated and introduced a number of programmes and strategies aimed at resolving this situation. These measures includes, introduction of scheme such as the River Basin Development Authority (1979), National Accelerated Food Production (NAFP) was introduced in 1972, Operation Feed the Nation (OFN) was inaugurated

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