Interest Types Quiz
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Questions and Answers

What is the characteristic of a fixed interest type?

  • Remains the same throughout the fixed rate term (correct)
  • Is lower than the lender's standard variable rate
  • Is the total cost of a loan
  • Changes over time

    • What is the Annual Percentage Rate (APR) a measure of?

  • The cost of borrowing money
  • The rate at which a commercial bank would charge to their most financially strong customers
  • The total cost of a loan, including both the interest rate and any other associated fees (correct)
  • The rate of interest set by banks for their best customers

    • What is the characteristic of a discounted interest type?

  • Remains the same throughout the fixed rate term
  • Is lower than the lender's standard variable rate, and it’s what a bank will offer its customers for a specific period of time as a promotional deal (correct)
  • Is the total cost of a loan, including both the interest rate and any other associated fees
  • Changes over time

    • What is the prime interest type related to?

    <p>The rate of interest set by banks for their best customers</p> Signup and view all the answers

    Which type of interest is charged on the principal amount as well as any accumulated interest?

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

    What is the main characteristic of straight commission?

    <p>Earnings based on commission alone</p> Signup and view all the answers

    Which type of commission includes a basic or fixed salary plus a commission?

    <p>Salary plus bonus commission</p> Signup and view all the answers

    What is public interest concerned with?

    <p>Welfare of the general public and society</p> Signup and view all the answers

    In which type of commission is the total earning of the sales agent based on commission rates for different levels of sales?

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

    What is the additional commission paid to a sales supervisor or head of department based on store sales or the sales of the representatives who work under the supervisor?

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

    Which type of commission is usually at a fixed percentage?

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

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