For example, when talking about the level of interest rate, some people tend to think it is solely determined by the cost of fund, without giving due consideration to market supply and demand. This is similar to the improper understanding of the factors determining the price of goods in the early stage of reform.
In addition, some people have not established the concept of risk premium when considering  BIS Review 8/2004  1  the level of interest rate. The need for favourable interest rate policy to support the reform of small and medium-sized enterprises is also a factor affecting the level of interest rate. II.