Examlex
Which of the following is not a feature of outcome-oriented principal-agent contracts?
Effective Annual Interest Rate
The actual return on an investment or the real cost of a loan, accounting for the compounding of interest over a year.
Line of Credit
A financial arrangement providing the borrower the right to draw funds up to a specified limit at any time within a fixed period.
Compensating Balance
A minimum account balance that a borrower is required to maintain as a condition of borrowing from a lender, often used to offset the cost of maintaining the loan.
Accounts Payable Period
The average time it takes for a company to pay off its suppliers.
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