If the Real Value of Your Savings Decreases Over Time

question 11

Multiple Choice

If the real value of your savings decreases over time:

• A) the real rate of interest is positive.
• B) inflation is zero.
• C) the real rate of interest is negative.
• D) the real rate of interest is zero.

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Definitions:

Dischargeable Debts

Debts that can be wiped out or eliminated in bankruptcy proceedings.

Good Faith

Acting with honesty and integrity in dealings, without the intent to defraud or seek unfair advantage.

Debtor

An individual or organization that owes money to another party.

Trustee in Bankruptcy

An individual or corporation appointed in a bankruptcy case to represent the interests of the creditors, manage the debtor's estate, and distribute assets accordingly.