The Real Rate of Interest Is

question 309

Multiple Choice

The real rate of interest is

• A) the nominal interest rate minus the anticipated rate of inflation.
• B) the interest rate actually paid explicitly by the borrower.
• C) the interest rate received by the lender minus the handling charges of the loan.
• D) the average rate of interest over the last 20 years.

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Definitions:

Molar

A tooth adapted for grinding, located in the posterior part of the mouth in both the upper and lower jawbones.

Muscularis

A layer of muscle found in various parts of the digestive system, responsible for segmental contractions and peristaltic movement.

Submucosal

Lying beneath the mucous membrane, often referring to a layer of tissue in various organs.

Mucosal

Pertaining to or resembling mucous membranes lining various body cavities and producing mucus.