The Nominal Risk Free Rate of Interest Is a Function

question 10

Multiple Choice

The nominal risk free rate of interest is a function of

• A) The real risk free rate and the investment's variance.
• B) The prime rate and the rate of inflation.
• C) The T-bill rate plus the inflation rate.
• D) The tax free rate plus the rate of inflation.
• E) The real risk free rate and the rate of inflation.

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Definitions:

Cash Receipts Journal

A journal used to record all cash inflows or money received by the business.

Cash Received

The amount of money a business collects, normally in exchange for goods or services.

Customers Account

Refers to the individual accounts or ledgers maintained by a business to record transactions related to sales, returns, payments, and balances owing for each customer.

Cash Receipts Journal

A financial journal that tracks all cash inflows or money received by a business, including sales, loans, and investments.