Examlex
Why might an REA diagram show relationships between agents?
Maturity
The time at which the principal or final payment of a financial instrument, such as a bond or loan, is due to be paid in full.
Interest Rate
The amount charged by lenders to borrowers for the use of money, expressed as a percentage of the principal, typically on an annual basis.
Compensating Balance
A minimum account balance that a company agrees to maintain in a bank account, often to qualify for favorable terms on a loan from the bank.
Effective Rate
The interest rate on a loan or investment, adjusted for the compounding period, providing a true reflection of financial costs or returns.
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