If the Bank Agrees to Make a Loan at a 7

question 144

Multiple Choice

If the bank agrees to make a loan at a 7 percent interest rate and the inflation rate is 3 percent, then 4 percent is the ________ rate.

• A)nominal interest
• B)real interest
• C)hyperinflation
• D)disinflation

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Definitions:

Ascribed Status

A social position assigned at birth or involuntarily later in life, not based on achievements or abilities.

Individual's Control

The power or influence a person has over their own decisions and actions in various aspects of life, including personal, social, and professional domains.

Ascribed Statuses

Social positions a person is born into, such as race, gender, and family background, as opposed to achieved statuses, which are acquired through personal effort.

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Social positions that individuals gain through their own efforts, skills, or accomplishments, as opposed to those inherited or assigned at birth.