If the Rate of Inflation Equals Zero Then the Nominal

question 41

Multiple Choice

If the rate of inflation equals zero then the nominal rate of interest:

• A)equals zero.
• B)equals the real rate of interest.
• C)can be negative.
• D)equals the target interest rate.

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Definitions:

Total Current Assets

The sum of all assets of a company expected to be converted into cash within one financial year.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services delivered or used but not yet paid for.

Current Liabilities

Financial obligations a company owes and is due to pay within a year.

Total Current Assets

The sum of all assets expected to be converted into cash within one year.