Interest rates can be accurately described as the rental price of money.

Question

Quizplus · Accepted Answer

Interest rates are the cost of borrowing money or the return on lending money. They can be compared to rental prices because, just like with renting a property, there is a cost associated with using someone else's asset (in this case, money) for a certain period of time. The borrower pays the lender interest as compensation for using their money, just as a tenant pays rent for using someone else's property.

Interest Rates Can Be Accurately Described as the Rental Price