Which of the Following Describes the Interest Rate Charged by Banks

question 44

Multiple Choice

Which of the following describes the interest rate charged by banks to their highest quality customers?

• A) real rate
• B) nominal rate
• C) risk-free rate
• D) prime rate
• E) inflation rate

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Definitions:

Invention

A new method, idea, product, or process developed from study and experimentation.

Technological Advance

The development and application of new technologies, leading to more efficient production processes, new products, or improved services.

Capitalist Economy

An economic system where private individuals and businesses own the means of production and operate for profit, guided by market forces.

Economists

Professionals or scholars who study, develop, and apply theories and concepts from economics, and write about economic policy.