The Possibility That Deflation Could Affect the Rate of Return

question 82

True/False

The possibility that deflation could affect the rate of return on an investment is referred to as interest rate risk.

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Definitions:

Sale Received

The revenue or income received from completed sales transactions.

Accrued Interest

Interest that has been earned but not yet received or paid. It accumulates from one payment period to the next.

Commission

A fee paid to an agent or employee for facilitating a sale or transaction, which is often a percentage of the sale price.

Accrued Interest

Interest that has been incurred but not yet paid, often referring to bonds or loans.