Asked by Kaianah Sweeting on May 04, 2024

verifed

Verified

Interest is defined as the:

A) return on all investments.
B) return on debt investments.
C) return on equity investments.
D) the one year return on investments in stocks or bonds.

Interest

The charge for borrowing money, typically expressed as an annual percentage rate.

Debt Investments

Financial instruments that represent a loan made by an investor to a borrower, typically used by corporations, municipalities, and sovereign governments to finance projects and operations.

Return

The payment to an investor for the use of funds. Usually expressed as a percent of the investment.

  • Comprehend the effects of interest rates on financial markets and the determinants of interest rates.
verifed

Verified Answer

ZK
Zybrea KnightMay 05, 2024
Final Answer :
B
Explanation :
Interest typically refers to the return earned on debt investments such as bonds. While it can also be used more broadly to refer to the return on any investment, the term interest is most commonly associated with debt investments. Therefore, choice B is the best option.