Examlex
Good closed-format surveys have three features,mutually exclusive,exhaustive,and balanced.Discuss these three features and an example of each.
Effective Interest Rate
A measure of the real cost of borrowing that takes into account the effect of compounding interest in addition to the nominal rate.
Compensating Balance
Compensating Balance is a minimum bank account balance that a borrower must maintain as part of a loan agreement, often used by banks as a requirement for extending a loan.
Interest Rate
The percentage of principal charged by the lender for the use of its money or the return earned on deposited funds.
Effective Interest Rate
The actual return on an investment, taking into account the effect of compounding interest.
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