BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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When the company you have bought stock in has earned you a profit
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When you borrow money from a lender and they charge you for the convenience of giving you a line of credit
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When you put money into your savings
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When you over withdrawal in your bank account and you are charged a fee
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Detailed explanation-1: -To put it simply, interest is the price you pay to borrow money – whether that’s a student loan, a mortgage or a credit card. When you borrow money, you generally must pay back the original amount you borrowed, plus a certain percentage of the loan amount as interest.
Detailed explanation-2: -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-3: -Interest on a line of credit Usually, the interest rate on a line of credit is variable. This means it may go up or down over time. You pay interest on the money you borrow from the day you withdraw money until you pay the balance back in full. Your credit score may affect the interest you’ll pay on a line of credit.
Detailed explanation-4: -Interest-The price that people pay to borrow money. When people make loan payments, interest is a part of the payment. Interest Rate-The cost of borrowing money expressed as a percentage of the amount borrowed (principal).