Title: Abuses based on the deficit of information in financial markets: the case of presenting the interest rate in basic financial offers

Authors: Bożena Frączek

Addresses: Department of Banking and Financial Markets, University of Economics in Katowice, ul. 1 Maja 50, 40-287 Katowice, Poland

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.

Keywords: abuse in financial markets; deficit of information; financial inclusion; interest rates; APR; annual percentage rate; financial education; consumer protection; personal finance management.

DOI: 10.1504/IJMEF.2020.110554

International Journal of Monetary Economics and Finance, 2020 Vol.13 No.5, pp.502 - 512

Received: 28 Oct 2019
Accepted: 05 Mar 2020
Published online: 23 Oct 2020 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article