The price paid for the use of money is defined as the
A)Rental rate.
B)Interest rate.
C)Profit rate.
D)Inflation rate.

Question

Quizplus · Accepted Answer

The price paid for the use of money is commonly known as the interest rate, which is the amount charged by lenders to borrowers for the benefit of using their money. The interest rate represents the cost of borrowing and the opportunity cost of lending, as well as the compensation for risk and inflation. Therefore, option B is the best choice.

The Price Paid for the Use of Money Is Defined