In Which of the Following Situations Would a Lender Definitely

question 28

Multiple Choice

In which of the following situations would a lender definitely pay a borrower interest in return for borrowing the lender's money?

• A) if the real interest rate was negative
• B) if the real interest rate was positive
• C) if the nominal interest rate was negative
• D) if the nominal interest rate was positive

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Definitions:

Bidding Firm

A company that proposes a financial offer in an attempt to acquire another company or win a contract.

Board of Directors

A group of individuals elected by the shareholders of a corporation to oversee the management and make major decisions affecting the company's policies and strategies.

Horizontal Acquisition

A business strategy where a company acquires another in the same industry and at the same level of the supply chain.

Automaker

A company that manufactures and sells vehicles, including cars, trucks, and motorcycles.