What is the main purpose of an interest payment? What major factors affect interest rates?
What will be an ideal response?
Interest is the price paid by debtors to creditors for the use of loanable funds or financial capital. It represents the cost of obtaining credit and it compensates the creditors for their loss of current command over resources. Interest rates are affected by such factors as the length of loan, risk of nonrepayment of the loan and handling changes.
Economics
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Another way of saying "ceteris paribus" is:
A. Other things equal B. In general C. In reality D. Because of this
Economics
If real GDP declines in a given year, nominal GDP:
A. Must also be declining B. Must also be increasing C. May either rise or fall D. Is likely to remain constant
Economics