Match the Term with Its Definition

question 34

Multiple Choice

Match the term with its definition.
-1/100th of 1 percent when quoting an interest rate

• A)asset-based loan
• B)basis point
• C)equipment loan
• D)LIBOR (London InterBank Offered Rate)
• E)line of credit
• F)prime rate (base rate)
• G)purchase-order financing
• H)term loan

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Definitions:

Price of Labor

Price of Labor refers to the wages or salary paid to workers for their labor or services.

Price of Capital

The expense involved in using capital goods, often involving interest rates or rental costs for financial or physical capital.

Perfectly Competitive Market

A theoretical market structure characterized by a large number of buyers and sellers, homogeneous products, and no barriers to entry or exit, leading to price takers rather than price makers.

Market Price

The present cost at which a service or asset is available for purchase or sale in the marketplace.