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The cost of borrowing money is called the?
The cost of borrowing money is called interest.
What is the relation between Public borrowing and price level?
if the increase the public borrowing increase the price level of economy.
What are the non-pecuniary cost borrowing?
The meaning of non-pecuniary cost borrowing is the when a person borrows money for buying a product including time to shop for it.
What happens to the quantity demanded for credit if the cost of borrowing increases or decreases?
As the cost of credit increases, the quantity demand decreases. in contrast, if the cost of borrowing drops, the quantity of credit demand rises.
What factors determine the cost of borrowing money?
The cost of borrowing money is determined by factors such as the interest rate, the borrower's creditworthiness, the loan amount, the loan term, and the current economic conditions.
Paying part of stock's price and borrowing the rest is called?
Buying on margin
What does interest rate represents in terms of the demand for money?
the price of borrowing money
What is the money factor formula used to calculate the cost of borrowing money?
The money factor formula used to calculate the cost of borrowing money is: Money Factor Annual Interest Rate / 2400.
How is interest similar to sales tax and markups?
Interest, sales tax, and markups all represent additional costs added to a base price. Interest is the cost of borrowing money, while sales tax is a percentage added to the purchase price of goods or services. Markups increase the selling price above the cost price to ensure profit. In essence, they all influence the final amount consumers pay for goods or services.
What is the appropriate discount rate for valuing the lease?
the after-tax cost of secured borrowing.
What is the market rate of interest formula used to calculate the cost of borrowing money?
The market rate of interest formula used to calculate the cost of borrowing money is: Market Rate of Interest Risk-Free Rate Risk Premium.
Define cost price and selling price?
define cost and selling price
