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Author Question: ________ rate of interest is the actual rate charged by the supplier and paid by the demander of ... (Read 145 times)

sarasara

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________ rate of interest is the actual rate charged by the supplier and paid by the demander of funds.
 
  A) Nominal
  B) Real
  C) Risk-free
  D) Inflationary

Question 2

Nico invested an amount a year ago and calculated his return on investment. He found that his purchasing power had increased by 15 percent as a result of his investment. If inflation during the year was 4 percent, then Nico's ________.
 
  A) real return on investment is more than 15 percent
  B) nominal return on investment is more than 15 percent
  C) nominal return on investment is less than 11 percent
  D) real return on investment is equal to 4 percent



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Kdiggy

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Answer to Question 1

A

Answer to Question 2

B





 

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