If the Nominal Interest Rate Is 6% and the Inflation

question 34

Multiple Choice

If the nominal interest rate is 6% and the inflation rate is 2%,then the real interest rate is

• A)8%.
• B)4%.
• C)3%.
• D)2%.
• E)1%.

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Definitions:

Performance Aids

Tools or resources provided to support the application of skills or knowledge in practical settings.

Memorization

The process of committing something to memory or the act of storing information or facts for recalling later.

Off-the-job Training

Training conducted outside the normal work premises, often in a classroom setting, where employees are taught theoretical or practical skills.

Structured On-the-job Training

A method of training where employees are taught and practice skills in their actual work setting under the guidance and supervision of an experienced worker or trainer.