What Name Is Given to the Rate of Exchange Between

question 27

Multiple Choice

What name is given to the rate of exchange between certain future consumption and certain current consumption, when there is no inflation and no risk?

• A) Pure rate of interest
• B) Internal rate of return
• C) Inflation proofing
• D) Net rate of return

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Definitions:

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, often referred to as the bottom line.

Return on Equity

A financial ratio that measures the ability of a firm to generate profits from its shareholders' equity.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Shareholders' Equity

The residual interest in the assets of a company after deducting its liabilities; also referred to as stockholders' equity.