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Why is an interest rate both a cost and a reward?
A
It is a cost to borrowers and a reward to savers.
B
The interest earned or paid rises with the amount of money.
C
Loan repayments become larger, causing some purchases to be postponed or abandoned.
D
Higher repayments leave households with less disposable income to spend.
Card 1 of 24
2.8.4 Interest rates and saving, borrowing, investment Flashcards
24 flashcards on OCR GCSE Economics 2.8.4 Interest rates and saving, borrowing, investment: the key terms, formulae and calculations you need to recall for Component 01 and Component 02.