If the Purchasing Power of Your Savings Increases Over Time

question 135

Multiple Choice

If the purchasing power of your savings increases over time:

• A) the real rate of interest is positive.
• B) you'll be able to buy more with your savings in the future than you can now.
• C) the inflation rate must be less than the nominal rate of interest.
• D) All of these statements are true.

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Definitions:

Conflict of Interest

A situation where an individual's personal interests could improperly influence their professional duties and decisions.

Personal Interests

Activities, hobbies, or topics that an individual finds enjoyable or is passionate about.