The interest rate:
A) is expressed as a percentage per dollar borrowed and per unit of time.
B) tells us how much less money is worth today than in the future.
C) exists only because lending is risky.
D) All of these statements are true.

Question

Quizplus · Accepted Answer

The interest rate is expressed as a percentage per dollar borrowed and per unit of time. While B and C may be related to interest rates in certain contexts, they are not accurate definitions of what an interest rate actually is.

The Interest Rate