The Nominal Interest Rate Is 5 Percent and the Real

question 165

Multiple Choice

The nominal interest rate is 5 percent and the real interest rate is 3 percent.What is the inflation rate?

• A)8 percent
• B)15 percent
• C)2 percent
• D)1.7 percent

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Definitions:

Cluster

The smallest increment in which data is stored on hard disks; hard disks are divided into tracks, then wedges, then sectors, then clusters.

Sector

A section of a hard drive platter, wedge-shaped from the center of the platter to the edge.

File Compression

File compression is the process of using algorithms to reduce the size of files and folders, making them easier to store and share.

Redundancies

Elements or systems that are duplicated and can function as backups to prevent failure in the primary system.