IFE

0.0(0)
learnLearn
examPractice Test
spaced repetitionSpaced Repetition
heart puzzleMatch
flashcardsFlashcards
Card Sorting

1/3

encourage image

There's no tags or description

Looks like no tags are added yet.

Study Analytics
Name
Mastery
Learn
Test
Matching
Spaced

No study sessions yet.

4 Terms

1
New cards

“Posted” interest rate on bank loan

The rate of interest the bank will get if the company does not default (go bust). It is in effect the "contractual rate of interest".

2
New cards

Effective interest rate on bank loan

The interest payment on the loan the bank expects to get divided by the loan which takes into account the possibility of default and therefore is always lower.

3
New cards

Nominal interest rate

Makes no allowance for interest rate

4
New cards

Real interest rate

Takes into account changes in prices.