ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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deposits
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interest
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public goods
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taxes
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Detailed explanation-1: -The amount of extra money that is paid while repaying the loan is called interest.
Detailed explanation-2: -INTEREST The additional money paid by the borrower to the lender for having used his money is called the interest.
Detailed explanation-3: -Debt can be simply understood as the amount owed by the borrower to the lender. A debt is the sum of money that is borrowed for a certain period of time and is to be return along with the interest.
Detailed explanation-4: -What are the Different Types of Interest? The three types of interest include simple (regular) interest, accrued interest, and compounding interest. When money is borrowed, usually through the means of a loan, the borrower is required to pay the interest agreed upon by the two parties.
Detailed explanation-5: -The correct option is A principal. The money borrowed or lent out for a certain period is called the principal.