the cost of a firm borrowing money is called the: interest rate
The cost of borrowing and the incentives for saving are both indicated by the interest rate. The amount you pay for borrowing money, expressed as a percentage of the entire loan amount, is what you will pay in interest if you are a borrower.
Once your loan is fully repaid, interest will have an impact on the overall cost you pay.
The cost of borrowing and the spending choices made by people and corporations are two ways that interest rates matter. For instance, lower interest rates might entice more individuals to take out loans for a car, a home repair project, or a mortgage for a new home.
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