Question

when amount deposited in a bank is withdrawn for fancing a project the loss of interest on bank deposit will be r referred to as​

Answer 1

Answer:

What Is a Deposit Interest Rate? The deposit interest rate is paid by financial institutions to deposit account holders. Deposit accounts include certificates of deposit (CD), savings accounts, and self-directed deposit retirement accounts

Answer 2

Answer: -

Opportunity Cost

Explanation: -

Opportunity Cost is defined as the value of one what we lose when choosing between two or more options. On Simple terms, opportunity cost is the loss of what we make for a particular gain or loss of one gain over another gain. This can be further explained below with an example by

When we are faced with any kind of financial decision we always try to visualise and maximize the returns that we will get. For instance, we could be entertained to try to sell one bond and the money gained using the process and experience to try another bond. The opportunity can be visualized as below:

      Current Bond A                                            New Bond B

 Future value could go up.                     Future value could go up.      

 Future value could go down               Future value could go down

Let’s assume that the current bond A Has a value of Rs.5000, we will think of selling Bond B slightly at a lower rate. Bond B has a face value of Rs.10000 so we have spent an additional amount of Rs.5000 to purchase Bond B. To determine which of the bonds will be received with the title of maximum returns we need to consider the weigh the options.

The initial cost of bond B is higher than bond A so we have spent more hoping to gain more because a lower interest rate on more money can still create more returns. However, we have to more than Rs.5000 the amount that came out of our pocket to add the value of bond B.

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