"Pure Rate of Interest" Refers to the Interest Rate That

question 102

Multiple Choice

"Pure rate of interest" refers to the interest rate that

• A)borrowers pay to lenders in their own family or circle of close friends.
• B)serves solely as payment to lenders for giving up current use of their funds.
• C)is the difference between the actual rate and the theoretical rate.
• D)measures the compensation to lenders for taking on the risks involved.

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