If the Nominal Interest Rate Is 10 Per Cent and the Rate

question 37

Multiple Choice

If the nominal interest rate is 10 per cent and the rate of inflation is 15 per cent, the real interest rate is:

• A) 5 per cent
• B) 25 per cent
• C) -5 per cent
• D) 150 per cent

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Definitions:

Decorative Merchandise

Items intended primarily to adorn or beautify a space, rather than serve a functional purpose.

Computer-operated Pump Meter

A device controlled by a computer that measures the flow of liquids or gases through a pump, often used for accuracy in dispensing fuels or chemicals.

Cash Discount

A reduction in the price paid for goods or services that is offered to customers who pay in cash rather than using credit.

Net Profit

The amount of money remaining after all operating expenses, taxes, and interest are deducted from total revenue.