Yield rate
Rate of return
Rate of interest
Economic return
Answer is Right!
Answer is Wrong!
The correct answer is: C. Rate of interest
The rate of interest is the cost of borrowing money or the amount earned by a unit principal per unit time. It is usually expressed as a percentage. For example, if you borrow \$100 at a rate of interest of 5%, you will have to pay back \$105 after one year.
The rate of interest is determined by a number of factors, including the supply and demand for money, the risk of the loan, and the
inflation rate.The rate of interest is an important factor in many economic decisions, such as whether to borrow money to buy a house or car. It is also used to calculate the present value of future cash flows.
Here is a brief explanation of each option:
- Yield rate is the return on an investment, expressed as a percentage. It is calculated by dividing the annual income from an investment by the initial investment.
- Rate of return is the total return on an investment, including both capital gains and dividends. It is calculated by dividing the total return on an investment by the initial investment.
- Economic return is the total benefit from an economic activity, including both monetary and non-monetary benefits. It is calculated by dividing the total benefit from an economic activity by the cost of the activity.