If Your Bank Pays You 6% Interest on a Savings

question 32

Multiple Choice

If your bank pays you 6% interest on a savings account and inflation is 2%,your approximate real rate of interest is

• A) 2%.
• B) 4%.
• C) 8%.
• D) 12%.

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Definitions:

Behaviour

Actions or reactions of an individual, in conjunction with their environment, which can be observed externally.

Psychological

Pertaining to the mind or mental processes, often involving emotional and behavioral aspects of individuals.

Social

Relating to society or its organization, or the interaction and communication among people within a community or group.

Legal

Pertaining to the system of rules and guidelines that govern behavior and practices within a society.