What Is the Real Rate of Interest If the Nominal

question 59

Multiple Choice

What is the real rate of interest if the nominal rate of interest is 10% and the rate of inflation is 4%?

• A)40%.
• B)14%.
• C)6%.
• D)2.5%.
• E)It cannot be determined.

---

Definitions:

Integrity

Refers to the quality of being honest and having strong moral principles.

Assistant

A person who supports others, typically in administrative tasks, to help them be more efficient in their roles.

SEC (Securities and Exchange Commission)

The regulatory authority tasked with overseeing the securities industry, enforcing legal compliance, and protecting investors.