Question:
Which statement best describes how an investor makes money off dept?
Options:
A. An investor make money by issuing bonds
B. An investor makes money by earning interest
C. An investor makes money by raising capital
D. An investor makes money by being repaid for the principal money
Answer:
The answer here is ( B) an investor makes money off dept by earning interest of the borrowed money.
Who is an investor?
An investor is an individual or entity that allocates capital with the expectation of generating a return or profit. Investors can participate in various financial markets, including stocks, bonds, real estate, and startups, seeking opportunities to grow their wealth over time.
What is interest?
Interest can refer to the cost of borrowing money or the return on investment. In finance, it's the fee charged by a lender to a borrower for the use of borrowed money, typically expressed as a percentage of the principal. In a broader sense, it can also signify curiosity or attention in various contexts.
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