Calculate the Nominal Rate If the Real Rate Is 4

question 102

Multiple Choice

Calculate the nominal rate if the real rate is 4.25% and the inflation rate is 3%.

• A)10.18%
• B)9.28%
• C)8.83%
• D)7.38%

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Definitions:

Income Statement Account

A financial account that shows the company's revenues, expenses, and net income over a specific period.

Petty Cash Transactions

Small purchases or expenditures paid using a readily available cash fund.

Cash Over and Short

An account that reports the discrepancies between the physical count of cash and the recorded amounts in a business's financial records.

Internal Control Procedures

Systems and policies put in place by a company to ensure the accuracy and integrity of financial and accounting information, prevent fraud, and comply with laws.