If a Lender Wants to Earn a Real Interest Rate

question 101

Multiple Choice

If a lender wants to earn a real interest rate of 3% and expects inflation to be 3%, he/she should charge a nominal interest rate that:

• A)Is at least 7%
• B)Is anything above 0%
• C)Equals the real rate desired plus expected inflation
• D)Equals the real rate desired less expected inflation

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Definitions:

Gender

Roles and behaviors attributed to one gender or another such as cognitive abilities, sexual behavior, hair length, clothing, and job preferences.

Personality

An individual's characteristic pattern of thinking, feeling, and acting that distinguishes them from others.

Transgender Men

Individuals who were assigned female at birth but identify and live as men.

Gender Identity

An individual's personal sense of their own gender, whether it be male, female, a blend of both, or neither.