The rate of interest actually paid or earned is the ________interest rate.
A) discounted
B) continuous
C) effective
D) nominal

Name: The rate of interest actually paid or earned is the ________interest rate. A) discounted B) continuous C) effective D) nominal
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Question

The rate of interest actually paid or earned is the ________interest rate. 
A) discounted
B) continuous
C) effective
D) nominal

Quizplus · Accepted Answer

Effective rate represents the actual amount of interest earned or paid over a period of time, taking into account compounding. It is the most accurate measure of the rate of interest.

The Rate of Interest Actually Paid or Earned Is the ________Interest