Which Statement Is False

question 86

Multiple Choice

Which statement is false?

• A) The prime rate is a real interest rate.
• B) The prime rate is not adjusted for inflation.
• C) The realized real interest rate adjusts the nominal interest rate to remove the effects of inflation.
• D) Real interest rate equals nominal interest rate minus the inflation rate.
• E) In the last half of 2009, the real interest rate was 0.25 percent, close to zero.

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Definitions:

Investment

The allocation of resources, usually money, in the expectation of generating an income or profit.

Inventory Turnover Rate

A measure of how many times a company's inventory is sold and replaced over a specified period, indicating the efficiency of inventory management.

Net Income

Profit remaining after all expenses, taxes, and deductions have been subtracted from total revenue.

Accounts Receivable

Accounts receivable are the amounts owed to a company by its customers for goods or services delivered but not yet paid for.