The pure rate of interest is the
A) rate of interest charged for large, as compared to small, loans.
B) interest rate minus any administrative costs, such as bookkeeping and collection.
C) difference between the interest rate charged on a loan with no risk and one with a measurable degree of risk.
D) prime rate of interest.
E) interest rate on a riskless loan.
Correct Answer:
Verified
Q1: Under tight monetary policy,large amounts of government
Q2: Small loans carry higher interest rates than
Q3: If the permanent annual rate of return
Q4: To shift the supply of loanable funds
Q6: The distinction between the pure rate of
Q7: If the desire for present consumption by
Q8: The primary function of interest rates is
Q9: If a surge of new inventions results
Q10: The equilibrium rate of interest is
A) determined
Q11: The rate of return on an asset
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