Retrieving "Loans" from the archives
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Principal
Linked via "loans"
Principal in Finance and Debt Instruments
In debt instruments, such as loans, bonds, or mortgages, the principal refers to the original amount of money borrowed or the outstanding balance upon which interest is calculated. This initial sum is distinct from the interest, which is the cost of borrowing that principal over time.
Amortization and Accretion -
Principal
Linked via "loans"
Amortization and Accretion
The relationship between the principal and interest is governed by the amortization schedule. In fully amortizing loans (e.g., standard residential mortgages), periodic payments are structured so that early payments cover a disproportionately large share of the accrued interest, while later payments significantly reduce the principal balance. Conversely, in certain long-term lending agreements, particularly those common in … -
Single Market
Linked via "loans"
Free Movement of Capital
This covers the free movement of investments, bank transfers, loans, and the acquisition of real or financial assets across borders. It effectively dismantles capital controls previously used by national treasuries.
This freedom is closely linked to the operation of the Eurozone and the unified monetary policy managed by the European Central Bank ($\text{ECB}$). However, tra…