The Nominal Interest Rate Tells You

question 152

Multiple Choice

The nominal interest rate tells you

• A)how fast the number of dollars in your bank account rises over time.
• B)how fast the purchasing power of your bank account rises over time.
• C)the number of dollars in your bank account today.
• D)the purchasing power of your bank account today.

---

Definitions:

Significance Level

A measure in statistics that determines the threshold of accepting or rejecting the null hypothesis in hypothesis testing.

Travel Time

The duration taken to move or transport from one location to another.

Commutes

The process of traveling between one’s home and place of work or study.

Kruskal-Wallis Test

A non-parametric statistical test used to determine if there are statistically significant differences between three or more groups of an independent variable on a continuous or ordinal dependent variable.