Is There a Difference Between the Terms Interest and Interest

question 51

Multiple Choice

Is there a difference between the terms interest and interest rate?

• A)No.Interest is simply a shorthand version of interest rate.
• B)Yes.Interest refers to the return that capital earns, whereas interest rate is the payment to someone who lends money to someone else.
• C)Yes.Interest is what one earns by placing funds in a savings account, whereas interest rate is the rate that the U.S.Treasury pays for borrowed funds when the government incurs a deficit.
• D)Yes.Interest is a dollar payment for the use of funds, whereas interest rate is the ratio of that dollar amount to the total amount of funds borrowed.

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Definitions:

Autonomy Needs

A psychological need that drives individuals to pursue independence and self-regulation in their actions and decisions.

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Emotions and sensations that are pleasant, uplifting, and contribute to an individual's sense of well-being and happiness.

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