ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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period of time it takes for the loan to reach full interest. Can not take money out until the time period is up.
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people who have invested in a corporation and own some of its stock
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payment people receive when they lend money or allow someone else to use their money
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spreading out of investments among several different types of accounts to lower overall risk
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Detailed explanation-1: -Loan maturity date refers to the date on which a borrower’s final loan payment is due. Once that payment is made and all repayment terms have been met, the promissory note that is a record of the original debt is retired. In the case of a secured loan, the lender no longer has a claim to any of the borrower’s assets.
Detailed explanation-2: -Paid at maturity. Interest will be paid gradually over the life of your term deposit. Interest is paid all at once when your term comes to an end. Generally comes with a slightly lower interest rate to offset the compounding effect.
Detailed explanation-3: -Perpetual bonds, also known as perps or consol bonds, are bonds with no maturity date.
Detailed explanation-4: -Investors who hold a bond to maturity (when it becomes due) get back the face value or “par value” of the bond.