2021 · Q6
The percentage by which the money the borrower pays back exceeds the money that was borrowed is called as
General KnowledgeIndian Economy
- ABank rate
- BNominal interest rate
- CReal interest rate
- DTerms of credit
Explanation
The nominal interest rate is the stated percentage by which the amount the borrower pays back exceeds the amount borrowed, measured without adjusting for inflation. The real interest rate is the nominal rate adjusted for inflation. The bank rate is the rate at which the central bank lends to commercial banks, and 'terms of credit' cover collateral, documentation, interest rate and mode of repayment together. The question asks only for the percentage excess, which is the nominal interest rate.