The Real Interest Rate Is

question 93

Multiple Choice

The real interest rate is:

• A)the everyday notion of the interest rate.
• B)adjusted for inflation.
• C)the amount of interest the bank pays you for saving or charges you for borrowing.
• D)All of these statements are true.

---

Definitions:

Product Line

A group of closely related products that are treated as a unit because of similar marketing strategy, production, or end-use considerations.

Bonds

Debt instruments that larger companies sell to raise long-term funds.

Preferred Stock

A special type of stock whose owners, though not generally having a say in running the company, have a claim to profits before other stockholders do.