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1 vote

Interest is paid because

Asked on by | Votes 1 | Views: 86 | Tags: general knowledge     | commerce     | economics     | Add Bounty

Interest is paid because

A).  Capital is scarce

B).  Capital is productive

C).  Capital is attractive

D).  Capital is surplus


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1 answers

1 vote
Answered by on | Votes 1 |

 Capital is scarce



Interest is paid because Capital is scarce. The borrower can get additional income from borrowed capital and in easily afford to pay interest. Hence it is scarcity.

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