The interest rate that investors require for loaning their money is referred to as:
A)the coupon rate of interest.
B)the market rate of interest.
C)the stated rate of interest.
D)the discount rate of interest.

Question

Quizplus · Accepted Answer

The market rate of interest is determined by supply and demand for loans, and represents the rate of return that investors require to lend their money. It is sometimes also referred to as the yield or cost of borrowing. The other options (A, C, and D) refer to specific types of interest rates or methods of calculating interest, but do not necessarily reflect the current market conditions or investor expectations.

The Interest Rate That Investors Require for Loaning Their Money