The Rate of Interest Written on a Contract Between a Borrower

question 119

Multiple Choice

The rate of interest written on a contract between a borrower and a lender is the

• A)nominal interest rate.
• B)real interest rate.
• C)implied interest rate.
• D)expected interest rate.

Identify the importance of human and technical skills in professional development.

Recognize the components of human capital that contribute to a competitive advantage.

Understand the fundamental purposes and benefits of studying organizational behavior.

Describe the management skills necessary for organizational effectiveness.

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Definitions:

Public Saving

The difference between government tax revenues and government spending. If positive, it indicates a budget surplus; if negative, a deficit.

Bonds

Bonds are fixed-income securities that represent loans made by an investor to a borrower, typically corporate or governmental, which must be repaid with interest.

Stocks

Financial instruments that signify ownership in a company and represent a claim on part of the company's assets and earnings.

Government Borrowing

The process by which governments finance their expenditure by accruing debt through issuing securities like government bonds and bills.