Which of the Following Is Correct

question 155

Multiple Choice

Which of the following is correct?

• A)Nominal and real interest rates always move together.
• B)Nominal and real interest rates never move together.
• C)Nominal and real interest rates do not always move together.
• D)Nominal and real interest rates always move in opposite directions.

---

Definitions:

Individual Insurance Plan

A health insurance policy purchased by an individual, as opposed to being provided by an employer.

Group Benefit

An advantage or favorable outcome obtained by a team or group, often in the context of workplace incentives or shared services.

Cash Balance Plan

Retirement plan in which the employer sets up an individual account for each employee and contributes a percentage of the employee's salary; the account earns interest at a predefined rate.

Predetermined Rate

A fixed charge, wage, or value established in advance for transactions, services, or labor, often based on standard criteria or prior agreements.