Gladys Agrees to Lend Kay $1,000 for One Year at a Nominal

question 203

Multiple Choice

Gladys agrees to lend Kay $1,000 for one year at a nominal rate of interest of 5 percent.At the end of the year prices have actually risen by 7 percent.Gladys earned a real rate of return of

• A)Negative 2%.
• B)2%.
• C)5%.
• D)7%.

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Definitions:

Study of Values

A psychological assessment that measures an individual's value system and the importance they place on certain values.

Categories of Values

Classifications or groupings of values, often used in investigating peoples’ priorities and principles.

Tension

A state of mental or emotional stress, often arising from situations of conflict or anxiety.

Characteristics of Traits

Inherent features, qualities, or attributes that define and differentiate individuals or entities.