1. What is an interest rate? Select one answer. A. Goods and services bought from other countries B. The value of one currency in terms of another C. The use of taxation and spending to achieve government objectives D. The cost of borrowing money or the return received on savings

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1. What is an interest rate? Select one answer - Edexcel - GCSE Business - Question 1 - 2017 - Paper 1

Question 1

1. What is an interest rate? Select one answer. A. Goods and services bought from other countries B. The value of one currency in terms of another C. The use of ... show full transcript

Worked Solution & Example Answer:1. What is an interest rate? Select one answer - Edexcel - GCSE Business - Question 1 - 2017 - Paper 1

Step 1

What is an interest rate?

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Answer

An interest rate is defined as the cost of borrowing money or the return received on savings. In financial terms, it provides a quantifiable measure of the expense incurred when borrowing funds. Therefore, the correct option is:

D. The cost of borrowing money or the return received on savings.

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