Arguably,interest represents:

Question

Quizplus · Accepted Answer

Interest refers to the cost paid by borrowers to lenders for the use of money. Thus, interest is a cost to borrowers but represents a return to savers who lend their money to borrowers. Therefore, option B is the most appropriate choice. Option A is incorrect because interest cannot represent both a cost and a return simultaneously. Option C is incorrect because interest represents the price of accessing funds earlier than they would be available without accruing interest, but it doesn't signify a cost to borrowers. Option D is incorrect because interest does not represent payment to the land factor of production directly. Option E is incorrect because it does not accurately capture the concept of interest.

Arguably,interest Represents