If the Nominal Interest Rate Is 5 Percent and the Rate

question 43

Multiple Choice

If the nominal interest rate is 5 percent and the rate of inflation is 9 percent,then the real interest rate is

• A)-4 percent.
• B)-0.44 percent.
• C)4 percent.
• D)14 percent.

---

Definitions:

VARK Inventory

A questionnaire that helps learners identify their preferred learning styles among Visual, Auditory, Reading/Writing, and Kinesthetic modalities.

Senses

The physiological mechanisms of perception, including sight, hearing, touch, taste, and smell.

Kinesthetic

Relating to kinesthesia, the perception of body movements and position, often highlighted in learning styles involving physical activity.

Aural Learner

An individual who learns most effectively through listening and auditory methods rather than through visual or tactile means.