If the Inflation Rate Is 10 Percent, What Is a Bank's

question 140

Multiple Choice

If the inflation rate is 10 percent, what is a bank's real rate of return on a loan of $100 at 10 percent interest?

• A) $100
• B) $10
• C) 10 percent
• D) 0 percent

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Definitions:

Personal Comments

Subjective remarks or observations made by an individual.

Uncomfortable

A feeling of physical or psychological distress or unease.

Inappropriate

Not suitable or proper in the context or situation.

Prevent Conflict

Methods and strategies intended to avoid disputes or disagreements before they become more serious issues.