A Nominal Interest Rate Is Normally Composed of Following Elements

question 68

Multiple Choice

A nominal interest rate is normally composed of following elements

• A) real interest rate, expected inflation rate and risk premium.
• B) real interest rate and risk premium.
• C) periodic interest rate, real interest rate and expected inflation rate.
• D) periodic interest rate, expected inflation rate and risk premium.

---

Definitions:

Trial And Error

A method of problem-solving that involves trying multiple options and eliminating those that do not work.

Robert Sternberg

An American psychologist known for his theory on love and intelligence, including the Triarchic Theory of Intelligence.

Peter Wason

A British psychologist known for his work in the field of cognitive psychology, particularly for his research on reasoning and decision-making.

Wolfgang Köhler

A psychologist and a key figure in the development of Gestalt psychology, noted for his work on insight learning.