The percentage by which the money the borrower pays back exceeds the money that was borrowed is called as

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Q: (CDS-I/2021)
The percentage by which the money the borrower pays back exceeds the money that was borrowed is called as

question_subject: 

Economics

question_exam: 

CDS-I

stats: 

0,101,109,35,101,61,13

keywords: 

{'nominal interest rate': [0, 0, 0, 1], 'real interest rate': [0, 0, 0, 1], 'bank rate': [0, 1, 1, 2], 'percentage': [1, 2, 2, 3], 'borrower': [0, 0, 0, 3], 'terms': [0, 0, 1, 0], 'credit': [0, 2, 4, 6]}

The correct answer is option 2: Nominal interest rate.

The nominal interest rate refers to the percentage by which the money the borrower pays back exceeds the money that was borrowed. In other words, it is the rate charged by the lender to the borrower as a fee for borrowing money. This fee is calculated as a percentage of the total amount borrowed.

Option 1, Bank rate, is not the correct answer. The bank rate refers to the rate at which the central bank lends money to commercial banks, and it is used to control the money supply and manage inflation.

Option 3, Real interest rate, is not the correct answer either. The real interest rate is the nominal interest rate adjusted for inflation. It represents the true cost of borrowing or the real return on investment.

Option 4, Terms of credit, is also not the correct answer. Terms of credit refer to the conditions and terms agreed upon between the lender and borrower, including the repayment period, interest rate, and any other fees or charges.

Therefore, the correct answer to the question is option 2: Nominal interest rate.

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