The Difference Between the Nominal Rate of Interest and the Real

question 41

Multiple Choice

The difference between the nominal rate of interest and the real rate of interest is the

• A)interest rate.
• B)expected interest rate.
• C)expected rate of inflation.
• D)advertised interest rate.

---

Definitions:

Selling Price

The amount of money charged for a product or service, or the sum of the value that customers exchange for the benefits of having or using the product or service.

Revenue Variance

The difference between the actual revenue earned and the expected revenue that was budgeted for a specific period.

Actual Revenue

The real income that a company generates from its business activities, reported during a specific period.

Static Planning Budget

A budget designed for a single level of activity and does not change even if the level of activity changes.