If the Nominal Rate of Interest Is 6

question 288

Multiple Choice

If the nominal rate of interest is 6.5% and the inflation rate is 3.0%,what is the real rate of interest?

• A)-9.5%
• B)-3.5%
• C)1.5%
• D)3.5%
• E)9.5%

---

Definitions:

Bipolar Disorders

Refers to a category of mood disorders that involve alternating episodes of mania and depression.

Major Depressive Disorders

A mental health condition characterized by persistent feelings of profound sadness, loss of interest, and a lack of pleasure in all or most activities.

Vulnerability

The quality or state of being exposed to the possibility of being attacked or harmed, either physically or emotionally.

Severe Mood Disorders

Refers to mood disorders of high intensity or severity, often requiring specific and rigorous treatment approaches.