Which of the Following Statements Regarding Real and Nominal Interest

question 16

Multiple Choice

Which of the following statements regarding real and nominal interest rates is true?

• A)Although real interest rates may be either positive or negative, nominal interest rates will always be positive.
• B)Although nominal interest rates may be either positive or negative, real interest rates will always be positive.
• C)If a security has a positive nominal return, then its real return will also be positive.
• D)Both real and nominal interest rates may be either positive or negative.

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Definitions:

Naval Disarmament

The act of reducing or abolishing naval forces and weaponry, often as part of broader disarmament treaties or efforts to prevent escalation of military conflicts.

Territorial Status Quo

Refers to the maintenance of existing territorial boundaries or conditions without change.

United States Marines

A branch of the U.S. Armed Forces responsible for providing power projection, using the mobility of the U.S. Navy to rapidly deliver combined-arms task forces.

Occupation

The control and possession of a territory, by a foreign military power, often following military conquest or treaty.