ECONOMICS
REAL VS NOMINAL
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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compare, price/cost
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pay for, profit
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price/cost, compare
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reduce, inflation
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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).
Detailed explanation-2: -Answer and Explanation: The interest rate charged by banks while borrowing and storing funds with each other is called interbank rates.
Detailed explanation-3: -The Annual Percentage Rate (APR) is the cost you pay each year to borrow money, including fees, expressed as a percentage. The APR is a broader measure of the cost to you of borrowing money since it reflects not only the interest rate but also the fees that you have to pay to get the loan.
Detailed explanation-4: -Interest rates are influenced by the supply and demand for loans and credit. Central banks raise or lower short-term interest rates to ensure stability and liquidity in the economy. Long-term interest rates are affected by the demand for 10-and 30-year U.S. Treasury notes.