As Long as the Inflation Rate Is Positive,the Real Rate

question 63

Multiple Choice

As long as the inflation rate is positive,the real rate of return on a security will be ____ the nominal rate of return.

• A)greater than
• B)equal to
• C)less than
• D)greater than or equal to
• E)unrelated to

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Definitions:

Fair Market Value

The price at which an asset would trade in a competitive auction setting, reflecting its true value under normal market conditions.

Equipment

Equipment consists of the tools, machinery, and other durable assets used by a business to carry out its operations.

Cash

Money in the form of currency, including coins and banknotes, which is used as a medium of exchange and legal tender.

Equally

In a manner that showcases uniformity or parity in distribution, value, or measure among all parties or elements involved.