BUISENESS MANAGEMENT
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the below is NOT a major component of interest rates?
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Real rate
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Inflation premium
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Historical interest rates
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Default premium
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Explanation:
Detailed explanation-1: -There are essentially three main types of interest rates: the nominal interest rate, the effective rate, and the real interest rate. The nominal interest of an investment or loan is simply the stated rate on which interest payments are calculated.
Detailed explanation-2: -Interest comes in various forms, and its primary types include Fixed Interest, Variable Interest, Annual Percentage Rate, Prime Interest Rate, Discounted Interest Rate, Simple Interest, and Compound Interest.
There is 1 question to complete.