Interest Payments Quiz

• Payment from a borrower to a lender of an amount equal to the principal sum borrowed
• Payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum at a particular rate (correct)
• Payment from a borrower to a third party for facilitating the loan transaction
• Payment from a lender to a borrower of an amount above repayment of the principal sum at a particular rate

• Interest is paid by a company to its shareholders from its profit or reserve, while dividend is paid by a borrower to a lender at a particular rate
• Interest is paid by a lender to a borrower at a particular rate, while dividend is paid by a company to its shareholders from its profit or reserve
• Interest is paid by a borrower to a lender at a particular rate, while dividend is paid by a company to its shareholders from its profit or reserve (correct)
• Interest is paid by a borrower to a lender at a fixed amount, while dividend is paid by a company to its shareholders at a variable rate

• The bank
• The customer (correct)
• The borrower
• A third party

<p>Interest amount paid or received over a particular period divided by the principal sum borrowed or lent, usually expressed as a percentage (D)</p> Signup and view all the answers

<p>Interest is received by a lender, whereas profit is received by the owner of an asset, investment, or enterprise (D)</p> Signup and view all the answers