If the Nominal Interest Rate Is 6 Percent and the Rate

question 156

Multiple Choice

If the nominal interest rate is 6 percent and the rate of inflation is 2 percent, what is the real interest rate?

• A)12 percent
• B)10 percent
• C)8 percent
• D)4 percent

---

Definitions:

Bankruptcy Filing

The legal process by which individuals or businesses declare their inability to pay their debts, seeking relief through the restructuring of debts or the liquidation of assets.

Legal Requirements

Regulations or obligations dictated by law that must be adhered to by individuals, organizations, or businesses.

Taxed

The imposition of compulsory levies on individuals or entities by governments in order to finance government activities.

Common Form

A widespread or standard format or structure that is frequently used for certain documents or procedures.