If Savers Require a 2% Return and Inflation Is Expected

question 81

Multiple Choice

If savers require a 2% return and inflation is expected to be 3%,what approximate rate will banks offer savers?

• A) 1%
• B) 3.2%
• C) 5%
• D) 6%

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Definitions:

Gland

An organ in the body that secretes particular chemical substances for use in the body or for discharge into the surroundings.

Prediabetes

Prediabetes is a condition where blood sugar levels are higher than normal but not high enough to be classified as diabetes, indicating a higher risk of developing type 2 diabetes.

Fasting Blood Glucose

A test that measures the level of glucose (sugar) in the blood after an individual has not eaten for at least 8 hours, used to diagnose diabetes and other conditions.

Adrenal Cortex

The outer part of the adrenal gland, which produces steroid hormones such as cortisol and aldosterone.