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</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</p> Signup and view all the answers