It is an average interest rate that banks offer in the financial market: a. effective rate b. Cetes c. CPP d. TIIE It is the payment for the use of someone else's money:
It is an average interest rate that banks offer in the financial market: a. effective rate b. Cetes c. CPP d. TIIE It is the payment for the use of someone else's money:
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
100%
Answer the following statements
It is an average interest rate that banks offer in the financial market:
a. effective rate
b. Cetes
c. CPP
d. TIIE
It is the payment for the use of someone else's money:
a. simple interest
b. interests
c. amount
d. interest rate
Expert Solution
Step 1
Effective Rate:
It is the interest rate on a loan provided or financial security restated from the nominal interest rate.
Simple Interest:
It is the interest received or paid on the fixed part of the principal borrowed or lent.
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