The Nominal Interest Rate Is 10

question 37

Multiple Choice

The nominal interest rate is 10%.The real interest rate is 4%.The inflation rate must be _________.

• A) -6.00%
• B) 4.00%
• C) 5.77%
• D) 14.40%

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Definitions:

Credits Account

A financial record that boosts a liability or equity account, or lowers an asset or expense account.

Drawee

The party in a bill of exchange who is directed to pay the specified amount, typically a bank.

Co-signer

An individual who signs a loan or credit application with another person, promising to pay the debt if the primary borrower does not.

Drawer

In financial transactions, the person who writes or the entity issuing a bill of exchange, cheque, or draft.