If the Bank Agrees to Make a Loan at a 7

question 59

Multiple Choice

If the bank agrees to make a loan at a 7% interest rate and the inflation rate is 3%, then 4% is the ______ rate.

• A)nominal interest
• B)real interest
• C)hyperinflation
• D)disinflation

---

Definitions:

Poisson Distribution

A statistical distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space.

Probability

A measure of the likelihood of a particular event or outcome occurring, expressed as a number between 0 and 1.

Calls Received

The total number of incoming calls handled by a system, service center, or individual within a specific timeframe.

Lightning Strikes

Electrical discharges caused by imbalances between storm clouds and the ground, or within the clouds themselves.