In October of 2015, the Nominal Interest Rate Earned on Money

question 507

Multiple Choice

In October of 2015, the nominal interest rate earned on money market accounts was around 0.20 percent. This interest rate is a measure of which of the following?

• A) the opportunity cost of holding money
• B) the inflation rate
• C) the demand for money
• D) the real interest rate

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Definitions:

Dollar

The primary currency unit used in the United States, marked by the symbol $ and known as a standard measurement in international financial transactions.

Token Woman

A woman in a predominantly male environment included to prevent criticism and give the appearance of gender equality.

Stereotyped

Having fixed, oversimplified, and generalized beliefs about a particular group of people or things.

Isolated

Being separated from others; in a situation where something or someone is not in contact or connected with other entities.