Interest rate

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what is interest? It is the compensation for the time value of money
Long term interest rate are _____ that short term interest rates higher
Short term interest rates tend to be more sensitive to _____ policies that long term interest rates Federal policies
what is simple interest? It is the interest paid or received on the initial investment
The initial amount invested or loaned is known as _____ The principle
what is compound interest? Increase in value over time due to interest on both the principal amount and on any interest earned up to that point in time.

what is interest?

Long term interest rate are _____ that short term interest rates

Short term interest rates tend to be more sensitive to _____ policies that long term interest rates

what is simple interest?

The initial amount invested or loaned is known as _____

what is compound interest?

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