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A straight forward example of a _______________, often used for simplicity, is the interest rate.

a. price ceiling.
b. financial investment.
c. rate of return.
d. price floor.

1 Answer

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Answer:

c. rate of return

Step-by-step explanation:

An interest rate can be described as the percentage that is paid by a loan borrower or charged by the lender on a loan. An interest rate is also the percentage of the amount borrowed, lent or deposited that is due per period.

An interest rate can also be referred to as a rate of return (RoR) to describe the amount of regular return that is expected to be paid to investors on a debt instrument like a certificate of deposit or bond.

Based on the above explanation, a straight forward example of a rate of return, often used for simplicity, is the interest rate.

Therefore, the correct option is c. rate of return.

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