According to ------- Theory Interest Arises on Account of the Productivity

question 15

Multiple Choice

According to ------- theory interest arises on account of the productivity of capital.

• A)Loanable Fund theory
• B)Productivity theory
• C)Abstinence theory
• D)Classical theory

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Definitions:

Market Rate

The current price or cost of goods, services, or commodities as determined by the market supply and demand.

Maturity

The date on which a financial obligation must be repaid in full or the point at which an investment reaches its full value.

Time Period

A specific duration for which financial or operational activities are measured, analyzed, and reported.

Lessee

An entity or individual that leases or rents property or equipment from another.