When the Interest Rate on Savings Is Two Times the Interest

question 2

Multiple Choice

When the interest rate on savings is two times the interest rate on a loan,it is ____________. ​

• A)less expensive to borrow to make a purchase
• B)less expensive to use your savings to make a purchase
• C)more expensive to borrow half the amount
• D)more expensive to borrow to save

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Definitions:

Active Market

A financial market in which securities or commodities are frequently traded, showing significant liquidity and pricing information.

Significant Influence

Refers to the power to participate in the financial and operating policy decisions of an investee but is not control or joint control over those policies.

Voting Shares

Shares that give the shareholder the right to vote on corporate matters, such as electing the board of directors and approving policies.

Voting Shares

Shares of a company that give the shareholder the right to vote on corporate matters and board elections.