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    Ma. Kristine Laurice Amancio
    The document discusses interest rates and how long-term loans are usually secured with property, which makes the effective interest rate lower than the nominal rate over time, providing a lower cost of borrowing than unsecured short-term loans. It also defines leverage as taking on debt or borrowed capital to undertake an investment or project.

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    Ma. Kristine Laurice Amancio
    21 views1 page
    The document discusses interest rates and how long-term loans are usually secured with property, which makes the effective interest rate lower than the nominal rate over time, providing a lower cost of borrowing than unsecured short-term loans. It also defines leverage as taking on debt or borrowed capital to undertake an investment or project.

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    The document discusses interest rates and how long-term loans are usually secured with property, which makes the effective interest rate lower than the nominal rate over time, providing a lower cost of borrowing than unsecured short-term loans. It also defines leverage as taking on debt or borrowed capital to undertake an investment or project.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    21 views1 page

    ANSWERS

    Uploaded by

    Ma. Kristine Laurice Amancio
    The document discusses interest rates and how long-term loans are usually secured with property, which makes the effective interest rate lower than the nominal rate over time, providing a lower cost of borrowing than unsecured short-term loans. It also defines leverage as taking on debt or borrowed capital to undertake an investment or project.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 1

    BSP BENJAMIN E. DIOKNO, Ph.D.

    DEBT 1
    ORGANIZATIONAL STRUCTURE 0 FINANCIAL SUPERVISOR SECTOR
    MONETARY AND ECONOMICS SECTOR
    CORPORATE SERVICES SECTOR
    INTEREST 0 NOMINAL > EFFECTIVE = PREMIUM
    TERM 0
    Interest rates are normally lower because long-term loans are usually secured with property.
    Over time, this makes for a lower cost of borrowing than unsecured short-term loans with higher rates.
    CORPORATE 1
    PAPER 1
    BORROWED CAPITAL 0 Leverage refers to taking on debt
    Leverage is the use of debt (borrowed capital) in order to undertake an
    FIXED REVOLVING CREDIT investment or project. 
    LOAN INSTALLMENT LOAN
    BANK RURAL BANK
    SUPPLY MONETARY POLICY
    FUNCTION LENDER OF LAST RESORT
    NBQBs 1
    GROUP CREDIT UNIONS
    PAY CREDIT
    CRIME IDENTITY THEFT
    CURRENCY INFLATION

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