Penny floater
So, you know what a penny is, right? It's a coin that's worth one cent. Well, sometimes people use the word "penny floater" to talk about something else that has to do with money.
You see, sometimes banks and other companies want to borrow money from people. They might ask you if you want to lend them some money, and promise to pay you back with interest. That means that they'll give you some extra money over time, kind of like a thank you for letting them use your money.
But here's the thing: sometimes the interest they promise is "floating." That means it can change over time, depending on certain things that happen. For example, if the economy is doing very well, the company might have to pay you more interest because they know they can make more money. But if the economy is doing poorly, they might not be able to afford to pay you as much interest.
That's where the term "penny floater" comes in. It's a type of loan where the interest rate is floating like a penny in water - it can move up and down based on other things happening around it. So if you hear someone talking about a "penny floater," they're probably talking about a type of loan where the interest rate can change over time.
You see, sometimes banks and other companies want to borrow money from people. They might ask you if you want to lend them some money, and promise to pay you back with interest. That means that they'll give you some extra money over time, kind of like a thank you for letting them use your money.
But here's the thing: sometimes the interest they promise is "floating." That means it can change over time, depending on certain things that happen. For example, if the economy is doing very well, the company might have to pay you more interest because they know they can make more money. But if the economy is doing poorly, they might not be able to afford to pay you as much interest.
That's where the term "penny floater" comes in. It's a type of loan where the interest rate is floating like a penny in water - it can move up and down based on other things happening around it. So if you hear someone talking about a "penny floater," they're probably talking about a type of loan where the interest rate can change over time.