When we borrow money, we are expected to pay for using it – this is known as __________. (Gain / Interest / P…

Question

When we borrow money, we are expected to pay for using it – this is known as __________. (Gain / Interest / Profit)

Accepted Answer

## Model Answer When we borrow money, we are expected to pay for using it – this is known as **Interest**. Source: What is meant by Interest?, Chapter 1 --- ## Explanation The answer is directly stated in the passage: "When we borrow money, we are expected to pay for using it - this is known as Interest." 'Gain' and 'Profit' are incorrect as they relate to earnings from business/investment, not the cost of borrowing.

Introduction to Financial Markets (405) — CBSE Class 10 board question