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Author Question: Suppose a credit union strives for a 3 real return on its loans to members, and expects a 2 ... (Read 79 times)

Alainaaa8

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on: Jun 29, 2018
Suppose a credit union strives for a 3 real return on its loans to members, and expects a 2 inflation rate. What nominal rate of interest should it charge its members?
 
  A) 0
  B) 1
  C) 3
  D) 6

Question 2

Suppose a bank wants a 5 real return on its loans, and contemplates a 1 annual inflation rate. The bank should therefore charge a nominal interest rate of
 
  A) 1.
  B) 4.
  C) 5.
  D) 6.


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kristenb95

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Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

D


Alainaaa8

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Reply 2 on: Jun 29, 2018
:D TYSM

ricroger

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Reply 3 on: Yesterday
Excellent

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