All of the Following Are Factors That Affect Nominal Interest

question 111

Multiple Choice

All of the following are factors that affect nominal interest rates EXCEPT

• A) time to maturity.
• B) real interest rate.
• C) convertibility features.
• D) foreign exchange.

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Definitions:

Flexibility Principle

In accounting, it refers to the principle that financial reporting and its practices should be flexible enough to adapt to changes in the business environment or in accounting standards.