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камата

The cost of borrowing, which compensates lenders for the risk they take in making their money available to borrowers. Without interest there would be little lending and thus a lot less economic activity. The charging of interest is contrary to Sharia (Islamic) law, being considered usury. Some American states also have usury laws, imposing tough conditions on the terms set by lenders, although not actually prohibiting interest. Yet, as the recent rise of a substantial banking industry in Islamic Middle Eastern countries shows, when economic growth is a priority, ways can usually be found to pay lenders to lend.

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Related terms

незаработена камата
Financial services; General Finance

Interest that has been received on a loan, but that cannot be treated as a part of earnings yet, because the principal of the loan has not been outstanding long enough.

сложена камата
Banking; Investment banking

Interest which is accrued on previous interest that has become due and been added to the principal amount.

сложена камата
Economy; Economics

If a deposit account of $100 earns an interest rate of 10% a year, then at the end of the year the account will contain $110. If all of that money is left in the account, then the ...

едноставна камата
Financial services; General Finance

Interest calculated as a simple percentage of the original principal amount. Compare to compound interest.

нарасната камата
Accounting; Tax

Interest that has been earned, but not yet collected, or interest that is due, but not yet paid (See also accumulated interest )

прогнозирање
Economy; Economics

The stuff that enables people to earn a living. Human capital can be increased by investing in education, training and health care. Economists increasingly argue that the ...

фиксни трошоци
Economy; Economics

Production costs that do not change when the quantity of output produced changes, for instance, the cost of renting an office or factory space. Contrast with variable costs.

финансиски посредник
Economy; Economics

A middleman. An individual or institution that brings together investors (the source of funds) and users of funds (such as borrowers). May be increasingly at risk of ...

извоз
Economy; Economics

Sales abroad. Exports grew steadily as a share of world output during the second half of the 20th century. Yet by some measures this share was no higher than at the end of the ...

очекуван поврат
Economy; Economics

The capital gain plus income that investors think they will earn by making an investment, at the time they invest.

очекувања
Economy; Economics

What people assume about the future, especially when they make decisions. Economists debate whether people have irrational or rational expectations, or adaptive expectations that ...

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