What is referred by interest ?
Correct answer: A. Payment made for the use of another person's money
- A. Payment made for the use of another person's money
- B. payment made for the use of bank's money
- C. Share in profit
- D. Devaluation in the currency
Explanation
Interest is the payment made by a borrower for using money belonging to another party, usually a lender. Bank interest is one common example, but the broader definition is not limited to banks.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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