If the Nominal Interest Rate Is 18 Percent and the Real

question 182

Multiple Choice

If the nominal interest rate is 18 percent and the real interest rate is 6 percent, the inflation rate is

• A)18 percent.
• B)24 percent.
• C)12 percent.
• D)6 percent.

---

Definitions:

Investment

The allocation of resources, usually financial, in expectation of a future return.

IFRS

stands for International Financial Reporting Standards, which are a set of accounting standards developed by the IASB that aim to bring consistency to accounting language, practices, and statements globally.

Consolidated Statement

Financial statements that reflect the combined operations, assets, and liabilities of a parent company and its subsidiaries.

Comprehensive Income

The total change in equity for a reporting period other than transactions from owners.