What is called interest that is paid previously earned interest as well as on the principal ?

Related Mcqs:

1. What is called interest payments plus repayments of principal to creditors ?

   A. Debt retirement
   B. Debt relief
   C. Debt service
   D. Payback

2. Failure to make timely payment of interest or principal on a debt security or to otherwise comply with the provisions of a bound indenture is called ?

   A. Rolling debt
   B. Bad debt
   C. Rescheduling
   D. Default

3. Interest that is calculated as a simple percentage of the original principal amount is called ?

   A. Market interest
   B. Easy interest
   C. Compound interest
   D. Simple interest

4. Interest payments and any principal repayments which are due on a country’s external debt are known as ?

   A. Debt Payment
   B. Service Charges
   C. Debt Charges
   D. Debt service

5. By which process the holder of a mortgage seizes the property of a homeowner who has not made interest and or principal payments on time as stipulated in the mortgage contract ?

   A. Foreclosure
   B. Default
   C. Bankrupt
   D. None of these

6. What is called the centers around the ability of a national economy to generate enough interests and principal on its foreign debt ?

   A. National economic risk
   B. Country economic risk
   C. Country finance risk
   D. Foreign exchange risk

7. Which type of income is earned only the actor of production enterprise ?

   A. interest
   B. Profit
   C. rent
   D. wages

8. The motive for holding money that encourages investors to hold bonds when interest rates are low, with the hope of selling them when interest rates are high, is the ?

   A. Transactions motive
   B. precautionary motive
   C. profit motive
   D. speculation motive

9. When money demand is expressed in a graph with the interest rate on the vertical axis and the quantity of money on the horizontal axis an increase in the interest rate ?

   A. None of these answers
   B. decrease the quantity demanded of money
   C. increase the quantity demanded of money
   D. decreases the demand for money
   E. increases the demand for money

10. If the nominal interest rate is 7 percent and the inflation rate is 3 percent, then the real interest rate is ?

    A. 4 percent
    B. 10 percent
    C. -4 percent
    D. 3 percent
    E. 21 percent