The Interest Rate of Return That Has Not Been Adjusted

question 45

Multiple Choice

The interest rate of return that has not been adjusted for inflation is called:

• A)a nominal rate
• B)a yield to maturity
• C)a real rate
• D)a floating rate
• E)a coupon rate

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Definitions:

401k Plan

A retirement savings plan offered by many American employers, allowing employees to save and invest a piece of their paycheck before taxes.

Employer's Contribution

Money that an employer adds to an employee's benefits, such as a retirement plan or health insurance.

Allowable Contribution

The maximum amount that can legally be contributed to a particular savings account or investment vehicle, often pertaining to retirement accounts.

Term Life Insurance Policy

A life insurance policy that provides coverage at a fixed rate of payments for a limited period of time, the relevant term.