The Lowest Rate of Interest Charged by a Bank for a Short-Term

question 9

Multiple Choice

The lowest rate of interest charged by a bank for a short-term loan is known as

• A) the discount rate.
• B) dividends.
• C) add-on interest.
• D) the compound interest rate.
• E) the prime interest rate.

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Definitions:

Premises

Statements or propositions that provide the grounds or reasons for a conclusion in logical reasoning or arguments.

Existential Import

A term in traditional logic referring to the implication that a statement assumes the existence of the subject it mentions.

Syllogism

A form of deductive reasoning that consists of two premises followed by a conclusion, based on the relationship between the terms within the premises.

Shading

A technique used in drawing and painting to represent light and shadow, or the gradual change of value.