When you go to a financial institution to obtain a loan, the rate of interest normally quoted will be the
A) effective rate.
B) quoted rate.
C) stated rate.
D) both A and C above.
E) both B and C above.

Question

Quizplus · Accepted Answer

The rate of interest normally quoted by financial institutions when obtaining a loan is the stated rate or nominal rate, which is often referred to as the quoted rate. This rate does not account for the effects of compounding.

When You Go to a Financial Institution to Obtain a Loan