BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Interest is:
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a charge for lending money to a bank
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the amount owed for borrowing money
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the amount added into your savings when opening a bank account
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a charge for the convenience of accessing money stored in your bank account
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Explanation:
Detailed explanation-1: -Interest is the monetary charge for borrowing money-generally expressed as a percentage, such as an annual percentage rate (APR). Interest may be earned by lenders for the use of their funds or paid by borrowers for the use of those funds.
Detailed explanation-2: -Interest is the cost of borrowing the principal. Generally, any payment made on an auto loan will be applied first to any fees that are due (for example, late fees). Next, remaining money from your payment will be applied to any interest due, including past due interest, if applicable.
Detailed explanation-3: -Principal: The amount of debt, exclusive of interest, remaining on a loan.
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