Examlex
Jessica was asked by the professor to give an example of "extending" during a discussion of a body project. Which of the following would Jessica give?
Prime Rate
The interest rate that banks charge their most creditworthy customers, often used as a benchmark for other rates.
Floating Rate Option
An option in a financial instrument that allows for a variable interest rate that adjusts periodically with market conditions.
Grace Period
A set time period after a payment is due during which a late fee is not charged, allowing a short extension for the payment without penalty.
Principal
The initial sum of money placed in an investment or lent out, excluding any interest or earnings.
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