What Kind of Payment Does Interest Represent

question 110

Multiple Choice

What kind of payment does interest represent?

• A) a payment now for money to be transferred in the future
• B) a payment in the future for a transfer of money in the past
• C) a payment in the past for money transferred now
• D) a payment at the time of the transfer of money

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Definitions:

45-degree Line

In economics, a reference line that represents where the quantity demanded equals the quantity supplied.

Indeterminate

A state in which something cannot be exactly established, known, or decided.

Positive

A descriptor indicating an increase, growth, or beneficial effect in a particular context.

Constant

A value or parameter in mathematics and science that remains unchanged throughout a given discussion, analysis, or calculation.