The Type of Feedback Mechanism That Contains Its Own Brake

question 86

Short Answer

The type of feedback mechanism that contains its own brake is called ____________________.

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Definitions:

Interest Rates

The rate at which a borrower pays interest to a lender for borrowing money.

Coupon Payments

Regular interest payments made to bondholders during the lifetime of the bond.

Floating Rate Bonds

Bonds with interest rates that adjust periodically based on a reference rate.

Coupon Rate

The interest rate stated on a bond or other fixed-income security, expressed as a percentage of its face value, that the issuer pays to the bondholder annually.