If You Want to Earn a Real Interest Rate of 3

question 234

Multiple Choice

If you want to earn a real interest rate of 3% on money you lend and you expect that inflation will be 2%,what nominal rate of interest will you charge?

• A)1%
• B)5%
• C)6%
• D)9%

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Definitions:

FAB

Features, Advantages, and Benefits; a sales methodology focusing on communicating the features, advantages, and benefits of a product or service.

Persuasive Communication

The ability to convince others to adopt a certain viewpoint or to take a specific action through effective verbal or written messages.

SELL Sequence

A methodical approach in sales that involves Showing the feature, Explaining the advantage, Leading into the benefit, and Letting the customer respond.

SWOT Analysis

A strategic planning tool used to identify and analyze the Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.