A loan bearing either no rate of interest or an interest rate which is below the true cost of capital lent is known as:

Related MCQs

• The interest due by applying the rate to the sum of the capital invested plus the interest previously earned and reinvested is referred to as
• Longterm funds in the capital, market can be raised either by borrowing from certain institutions or through -
• Which from the following is not true when the interest rate in the economy goes up?
• Which among the following statements is not true when there is an increase in interest rate in an economy?
• Bank Rate refers to the interest rate at which -
• Bank rate is the rate of interest -
• Bank rate is the rate of interest:
• Which of the changes below is most likely to lead directly to an increase in the income growth rate?
• The legal instrument that pledges a house or other real estate as security for repayment of a loan is called:
• A loan facility on the customer’s current account at a bank permitting him to withdraw up to a certain agreed limit for an agreed period, is referred to as: