The interest rate that investors demand for loaning their money is referred to as:

Question

Quizplus · Accepted Answer

The interest rate that investors demand for loaning their money is commonly known as the market rate of interest, as it is determined by market forces of supply and demand. The contract rate of interest is the specific rate agreed upon in the loan contract, while the stated rate of interest is the rate that is publicly advertised for the loan. However, the market rate is not necessarily the same as the contract or stated rate, as it reflects the actual rate that investors are willing to accept based on market conditions. Therefore, option A is the best choice.

The Interest Rate That Investors Demand for Loaning Their Money