The Nominal Interest Rate Is

question 38

Multiple Choice

The nominal interest rate is

• A)the interest rate measured in terms of goods.
• B)always less than the real interest rate.
• C)equal to the real interest rate minus the rate of inflation.
• D)the type of interest rate typically reported in the financial pages of newspapers.
• E) equal to the expected rate of inflation.

---

Definitions:

Credit Entries

Accounting entries that increase liabilities, equity, and income accounts, or decrease asset and expense accounts.

Special Journal

A financial journal designed for recording a specific type of transaction in a more efficient manner, such as sales or purchases.

Subsidiary Ledger

An elaborate record book holding specific subsidiary accounts linked to a principal account, including accounts receivable and accounts payable.

General Ledger

The main accounting record of a company or organization, containing all the financial accounts and transactions.