market-rate
UK[ˈmɑːkɪt reɪt]US[ˈmɑːrkɪt reɪt]
adj
Relating to or being a price, interest rate, or wage that is determined by current conditions in the open market, not fixed or subsidized.
n
The current price or interest rate for a commodity, service, or financial instrument as determined by supply and demand in the open market.
Morpheme Breakdown
market
rate
market
noun
rate
noun
Etymology
The compound term 'market-rate' is a modern financial and commercial construct, directly combining two ancient nouns of valuation. 'Market' originates from the Latin concept of a place or event of trade (mercatus), embodying the principle of open exchange. 'Rate' stems from the Latin notion of a fixed or calculated proportion (rata), evolving to signify a measured price or standard. Their fusion in the late 19th/early 20th centuries created a precise term denoting a price or interest level not set by authority but dynamically established through the impersonal forces of supply and demand within the commercial 'market'. Thus, the term's logic transparently links the arena of exchange ('market') with the resulting measure of value ('rate').
Analysis
Structure: market (noun) + rate (noun)
- market: From Latin mercatus (trading, trade, market), via Old North French market. Functions as a noun used attributively to specify the domain or source of the 'rate'.
- rate: From Latin rata (as in pro rata parte, 'according to a fixed proportion'), via Old French rate ('price, value'). Functions as a noun meaning a measure, price, or standard.
Examples
They could only secure a mortgage at the market-rate, which was higher than the initial promotional offer.
The company aims to pay all employees a market-rate salary to remain competitive.
The bond's interest is adjusted quarterly based on the prevailing market-rate.