The Current 1-Year Nominal Interest in the United States Is

question 78

Multiple Choice

The current 1-year nominal interest in the United States is 7%.If the anticipated inflation for the coming year in the United States is 2.5%,what is the real interest rate in the U.S.?

• A) 4.21%
• B) 4.39%
• C) 4.50%
• D) 7.18%

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Definitions:

Trustworthiness

The quality of being reliable, honest, and deserving of trust.

Intelligence/Skill

The capacity for learning, understanding, and applying knowledge and abilities to achieve specific tasks or solve problems.

Cultural Sensitivity

An awareness of and willingness to understand why people of another culture act as they do; a leadership quality requiring patience, willingness to learn, and flexibility, resulting in a bond of trust and respect among diverse people.

Diversity

Represents the range of differences among people, including but not limited to culture, race, gender, age, and beliefs.