Which One of These Statements Is Incorrect

question 16

Multiple Choice

Which one of these statements is incorrect?

• A) Real cash flows must be discounted at a real discount rate.
• B) (1 + real rate of interest) = (1 + nominal rate of interest) / (1 + inflation rate)
• C) The actual real rate of interest almost equals "nominal rate of interest − inflation rate."
• D) Inflation rate = nominal rate / real rate − 1

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Definitions:

Racial Disparities

Differences in treatment, outcomes, and opportunities among individuals or groups based on race, often signifying systemic inequality.

Wealth

Wealth refers to the accumulation of valuable resources and assets, such as money, real estate, and investments, distinguishing individuals or groups in terms of economic status.

Student Loans

Financial aids provided to students to help cover the costs of post-secondary education, which are required to be paid back with interest after graduation.

Pine Ridge Indian Reservation

A reservation home to the Oglala Sioux Tribe, located in South Dakota, historically significant for its role in Native American history and ongoing struggles.