ECONOMICS
FISCAL POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Interest that is calculated on the principal plus the interest that has been charged or paid so far.
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The cost of borrowing someone else’s money.
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This means that at least 51% of all of the people who are given the product are charged that interest rate; the other 49% of customers are charged a different rate of interest.
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The increase in prices over time, as measured by how much a typical ‘basket’ of goods costs.
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Detailed explanation-1: -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). Typically, low-risk borrowers with good credit scores pay the lowest interest rates.
Detailed explanation-2: -Interest. Interest is the amount of money a financial institution charges for letting you use its money. The rate of interest can be either fixed or variable. • Fixed rate means the interest rate stays the same throughout the term of the loan.
Detailed explanation-3: -If you are a borrower, rising interest rates will usually mean that you will pay more for borrowing money, and conversely, lower interest rates will usually mean you will pay less. How much of an impact will all depend on whether your borrowing is tied more to short-term rates or longer-term rates.