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Tamil Nadu Board of Secondary EducationHSC Commerce Class 11

What do you mean by interest? - Economics

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Question

What do you mean by interest?

Short Note

Solution

  1. Interest is the reward paid by the borrower to the lender for the use of capital.
  2. Interest is the price paid for the use of capital in any market.
  3. Generally speaking, interest is a payment made by a borrower to the lender for the money borrowed.
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Chapter 6: Distribution Analysis - Model Questions - Part B [Page 141]

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Samacheer Kalvi Economics [English] Class 11 TN Board
Chapter 6 Distribution Analysis
Model Questions - Part B | Q 25 | Page 141
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