If the Nominal Interest Rate Is 15 Percent and the Inflation

question 48

Multiple Choice

If the nominal interest rate is 15 percent and the inflation rate is 5 percent,then what is the real interest rate?

• A)10 percent
• B)20 percent
• C)3 percent
• D)5 percent

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Definitions:

Bank Statement

A monthly or quarterly document provided by a bank detailing all transactions in an account, including deposits, withdrawals, fees, and interest earned.

Imprest Petty Cash

A fixed amount of cash used for small, incidental expenses, replenished periodically.

Petty Cash Receipts

Documents that provide evidence of small, incidental purchases made using a company's petty cash funds.

Fund Replenishment

The process of adding money to a fund to return it to its initial level or to support continued use or operation.