Real Rates of Return Are Typically Less Than Nominal Rates

question 84

Multiple Choice

Real rates of return are typically less than nominal rates of return due to:

• A) inflation.
• B) capital gains.
• C) dividend payments.
• D) depreciation.

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Definitions:

NSF Charges

Non-Sufficient Funds (NSF) charges are fees charged when a transaction is attempted on an account without adequate funds to cover it.

Legal Rights

Refers to the entitlements granted by legal systems or societal norms to individuals or entities, encompassing freedoms, privileges, and protections under law.

Clearing

The process of reconciling purchases and sales of various options, futures, or securities, as well as the direct transfer of funds from one financial institution to another.

Refuse To Honor

The act of not accepting, acknowledging, or fulfilling an agreement, request, or instruction.