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:

Contract

A legally enforceable agreement between two or more parties, typically involving the exchange of goods, services, money, or promises.

Court

A governmental body authorized to adjudicate legal disputes, interpret laws, and administer justice.

Basis

The underlying support or foundation for an idea, argument, or process.

Sue

To initiate legal proceedings against an individual or entity in order to seek redress or enforce a right.