If a Bank Advertises 3 Percent Interest for a Checking

question 327

Multiple Choice

If a bank advertises 3 percent interest for a checking account and the anticipated rate of inflation is 3.5 percent

• A) the real rate of interest earned on the account is 0.5 percent.
• B) the real rate of interest earned on the account is -0.5 percent.
• C) the real rate of interest earned on the account is 6.5 percent.
• D) the real rate of interest earned on the account is 3.25 percent.

---

Definitions:

Genetic Factors

Influences determined by the genes an individual inherits from their parents, affecting various aspects of their physical and psychological traits.

Environmental Factors

Elements of the environment that can influence living organisms, including natural features, human activities, and social conditions.

Synapses

The junctions through which neurons communicate with each other, using chemical or electrical signals.

Human Beings

Members of the species Homo sapiens, characterized by their ability to adapt, think, and create complex cultures.