You Put Money into an Account

question 155

Multiple Choice

You put money into an account. One year later you see that you have 5 percent more dollars and that your money will buy 6 percent more goods.

• A) The nominal interest rate was 11 percent and the inflation rate was 5 percent.
• B) The nominal interest rate was 6 percent and the inflation rate was 5 percent.
• C) The nominal interest rate was 5 percent and the inflation rate was −1 percent.
• D) None of the above is correct.

---

Definitions:

Loyalty Programs

Marketing initiatives designed to reward and thereby retain customers by offering benefits (such as points, discounts, or rewards) for frequent purchases or engagement.

Reward Programs

Loyalty schemes designed by businesses to incentivize and retain customers by offering them benefits for repeated purchases or engagements.

Sales Promotion

A marketing strategy involving the use of short-term incentives to encourage the purchase or sale of a product or service.

A Sample

A portion or subset of a larger group or dataset, selected for analysis or observation of the whole.