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During the recession phase of the business cycle,business firms become pessimistic about their future earning capacity as do banks.Nominal interest rates fall during recessions.Investment lending could be expected to
Compounded Quarterly
This refers to the process of applying interest to an initial amount of money (principal) four times a year, at the end of each quarter.
Economically Equivalent
Refers to different financial transactions or investments that have the same economic effect or value, despite differing in structure or form.
Scheduled Payment
A pre-determined amount of money that is paid at regular intervals under the terms of a loan or lease agreement.
Compounded Semi-Annually
Interest on a loan or investment calculated twice a year, adding each interest payment to the principal.
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