Suppose That Over the Past Year,the Real Interest Rate Was

question 110

Multiple Choice

Suppose that over the past year,the real interest rate was 6 percent and the inflation rate was 4 percent.It follows that

• A)the dollar value of savings increased at 6 percent,and the purchasing power of savings increased at 2 percent.
• B)the dollar value of savings increased at 6 percent,and the purchasing power of savings increased at 10 percent.
• C)the dollar value of savings increased at 10 percent,and the purchasing power of savings increased at 2 percent.
• D)the dollar value of savings increased at 10 percent,and the purchasing power of savings increased at 6 percent.

---

Definitions:

Credit

An accounting entry that increases liabilities or equity or decreases an asset or expense.

Signature Card

A form signed by a bank customer that the bank uses to verify signature authenticity on all checks.

Forgeries

Illegal alterations or productions of documents, currency, or other items with the intent to deceive.