If a Lender Desires to Earn a Return of 4

question 35

Multiple Choice

If a lender desires to earn a return of 4 percent on a loan and the anticipated rate of inflation is 3 percent,the lender should charge a

• A)Real interest rate of 1 percent.
• B)Nominal interest rate of -7 percent.
• C)Real interest rate of -1 percent.
• D)Nominal interest rate of 7 percent.

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Definitions:

Influence Tactics

Methods or strategies used by individuals or groups to affect the decisions, behaviors, and opinions of others.

Power Bases

The sources from which individuals or groups derive their ability to influence others, including factors like expertise, relationships, authority, or access to resources.

High Need

A heightened, intense demand or necessity for a particular resource, feeling, or condition by an individual or group.

Power

The ability or capacity to influence, control, or manipulate outcomes, behaviors, or decisions, often through formal or informal means.