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15 cards from this deck
% cost of borrowing or reward for saving money
Business loans and overdrafts
Interest on loans & interest on overdrafts
Remain constant throughout entire loan period
Predictable costs and budget certainty
Cannot benefit if interest rates fall
Fluctuate based on market conditions
Create uncertainty, difficult to predict future costs
Higher borrowing costs, loans more expensive
Reduce spending, demand falls
May worsen due to increased debt servicing costs
Reduced costs, expansion more affordable
Increased spending, higher disposable income
Loan amount × interest rate (%)
$2,000 extra per year
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