Simon Is a Personal Electronics Salesperson for a Major Retail

question 127

True/False

Simon is a personal electronics salesperson for a major retail chain. When he makes recommendations to customers to help them select the product that will best meet their needs, Simon is providing information utility.

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Definitions:

Annual Income

The total amount of income earned over a year from all sources including wages, salaries, bonuses, dividends, and interest.

Nominal Interest Rate

The rate of interest charged on a loan without taking the inflation rate into account.

Real Interest Rate

It represents the rate of interest an investor expects to receive after allowing for inflation, fundamentally indicating the true return on an investment.

Inflation Rate

The annual rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. Central banks attempt to limit inflation to maintain a healthy economy.