If a Lender Wants a Real Return of 6 Percent

question 43

Multiple Choice

If a lender wants a real return of 6 percent and she expects inflation to be 4 percent,which of the following is the correct nominal interest rate to charge?

• A) 4 percent
• B) 6 percent
• C) 2 percent
• D) 10 percent
• E) -2 percent

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Definitions:

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A collection of related data fields that together represent a single item or entity within a database table.

Record Selector Button

A control in database applications that allows users to select individual or multiple records from a list for processing or editing.

Record Deletion Button

An interface element in software applications that allows users to remove records or data entries from a database or system.

Column Heading

The label or name at the top of a column in a table or spreadsheet that describes the content in that column.