Which Statement Is False

question 101

Multiple Choice

Which statement is false?

• A) The prime rate is a nominal 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 divided by 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:

Revocation Effective

The point in time when the cancellation or withdrawal of a legal privilege, right, or contract becomes officially valid.

Irrevocable Offer

An offer that cannot be withdrawn or revoked for a certain period once made, holding the offeror to their promise.

Roasting Services

A business service centered on processing coffee beans or other products by applying heat to achieve desired flavors.

Offer Rejected

The refusal to accept a proposal or offer, such as in negotiations, where one party declines the terms proposed by another.