Which of the Following Statements Is True

question 53

Multiple Choice

Which of the following statements is true

• A)Inflation has no effect on the nominal rate of interest.
• B)The realized nominal rate of interest is always greater than the real rate of interest.
• C)Certificates of deposit offer a guaranteed real rate of interest.
• D)None of the above is true.
• E)A,B and C

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Definitions:

Chapter 13

refers to a part of the U.S. Bankruptcy Code that enables individuals with a regular income to develop a plan to repay all or part of their debts.

Chapter 7

A provision of the bankruptcy code that provides for "liquidation," whereby a debtor's assets are distributed to creditors.

Repayment Plan

A structured schedule agreed upon for paying back borrowed money.

Security Interest

An official right or charge on property pledged as security, often for the purpose of loan repayment assurance.