If the Nominal Interest Rate Is 5 Percent and the Rate

question 54

Multiple Choice

If the nominal interest rate is 5 percent and the rate of inflation is -2.5 percent,then the real interest rate is

• A)-7.5 percent.
• B)-2.5 percent.
• C)2.5 percent.
• D)7.5 percent.

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Definitions:

Computer Technician

A professional responsible for the maintenance, repair, and proper functioning of computer hardware and software.

Invoice

A document issued by a seller to a buyer, indicating the products or services provided and the amount due.

Accrued Wages

Compensation that employees have acquired through work but still awaits disbursement by the employer.

Wages Expense

The total cost incurred by a company for the compensation of its employees, excluding benefits and bonuses.