If the Money Rate of Interest Is 9 Percent and the Real

question 22

Multiple Choice

If the money rate of interest is 9 percent and the real rate of interest 6 percent, the inflationary premium is

• A) 3 percent.
• B) 6 percent.
• C) 9 percent.
• D) 12 percent.

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Definitions:

ACC

Accelerator Control Coaster; this term might be incorrectly listed as it's not standard without context, but in automotive it could refer to Accelerator Control, whereas in computing, ACC often stands for Accumulator, a type of register used in CPUs.

Delay Time

A specific duration used to postpone an event or action in a system.

Retentive Timer

An electromechanical relay that accumulates time whenever the device receives power and maintains the current time should power be removed from the device. Loss of power to the device after reaching its preset value does not affect the state of the contacts.

Off-Delay Nonretentive Timer

A timing function that starts counting when its input is turned off and does not retain the timing value after the power is removed.