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_____ refers to rewarding approximations of a desired behavior.
Amortized Cost Basis
An accounting method that gradually writes off the initial cost of an asset over a period, which reflects its consumption or use over time.
Credit Loss
Credit Loss is the loss incurred by a lender when a borrower fails to repay a loan, and the recoverable amount is less than the outstanding balance.
Effective Interest Rate
The real cost of borrowing, taking into account the effects of compounding interest.
Debt Security
A financial instrument representing a loan made by an investor to a borrower, typically corporate or governmental, where the borrower is obligated to pay back with interest.
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