The Rate of Interest Agreed Upon Contractually Charged by a Lender

question 168

Multiple Choice

The rate of interest agreed upon contractually charged by a lender or promised by a borrower is the ________ interest rate.

• A) effective
• B) nominal
• C) discounted
• D) continuous

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Definitions:

Tort Action

A legal proceeding arising from a wrongful act, leading to civil liability, rather than stemming from a contract dispute or criminal case.

Compensation

Payment or reward given for services rendered or damages incurred.

Tortfeasor

A person or party that has committed a tort, which is a wrongful act leading to legal liability.

Intentional Tort

An Intentional Tort is a civil wrong resulting from an intentional act on the part of the tortfeasor (wrongdoer) that causes harm to another.