Under Which of the Following Conditions Would You Prefer to Be

question 56

Multiple Choice

Under which of the following conditions would you prefer to be the lender?

• A) The nominal rate of interest is 15 per cent and the inflation rate is 14 per cent.
• B) The nominal rate of interest is 20 per cent and the inflation rate is 25 per cent.
• C) The nominal rate of interest is 12 per cent and the inflation rate is 9 per cent.
• D) The nominal rate of interest is 5 per cent and the inflation rate is 1 per cent.

---

Definitions:

Throughput Time

The total time taken for a unit to pass through a production process, from start to finish, including both processing time and waiting time.

Manufacturing Cycle Efficiency

A measure of the efficiency of the production process, calculated as the ratio of value-added time to total cycle time.

Delivery Cycle Time

The total time taken from when a customer places an order to the time the product is delivered to the customer.

Manufacturing Cycle Efficiency

A measure of the efficiency of a manufacturing process, calculated as the ratio of value-added time to the total cycle time.