The Nominal Interest Rate Is

question 140

Multiple Choice

The nominal interest rate is

• A)determined by the forces of supply and demand in the consumer goods market.
• B)the interest rate in current dollars, unadjusted for inflation.
• C)higher than the real interest rate even if the expected inflation rate is zero.
• D)lower than the real interest rate even if the expected inflation rate is zero.

---

Definitions:

Bank Statement

A document provided by a bank that summarizes an account's transactions and balances over a specified period.

Outstanding Checks

Checks that have been written and recorded in accounting but not yet cleared or cashed by the bank.

Service Charge

An additional fee added to a customer's bill for the provision of certain services.

Bank Statement Balance

The total amount of money that is available in an individual's bank account at the end of a given period, according to the bank’s records.