Question: Choose answers from each dropdown list to correctly complete the sentence. A loan's [dropdown] represents the total cost of borrowing money, including all fees, while its [dropdown] is the basic cost of borrowing money, expressed as a percentage of the principal.

1. The problem asks us to identify two financial terms related to loans. 2. The first term describes the total cost of borrowing money, including all fees. 3. The second term describes the basic cost of borrowing money, expressed as a percentage of the principal. 4. The formula for the basic cost of borrowing is often expressed as the interest rate, which is the percentage of the principal charged as interest. 5. The total cost of borrowing, including fees, is called the Annual Percentage Rate (APR). 6. Therefore, the first dropdown should be filled with "Annual Percentage Rate (APR)". 7. The second dropdown should be filled with "interest rate". Final answer: A loan's **Annual Percentage Rate (APR)** represents the total cost of borrowing money, including all fees, while its **interest rate** is the basic cost of borrowing money, expressed as a percentage of the principal.