1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Oksana_A [137]
3 years ago
8

The difference between the nominal interest rate and the real interest rate is

Business
2 answers:
leonid [27]3 years ago
8 0

Answer: the correct answer is letter D. the nominal interest rate is the stated interest rate whereas the real interest rate is the nominal interest rate minus the inflation rate.

Explanation: in financial maths when you speak about "real" rates you should consider the inflation impact.

anyanavicka [17]3 years ago
8 0

Answer:

D. the nominal interest rate is the stated interest rate whereas the real interest rate is the nominal interest rate minus the inflation rate.

Explanation:

The nominal interest rate is that interest rate that is advertised by the financial institutions either as interest on loan or deposit. Since it is the interest rate stated in financial instruments like the ones quoted on bonds, it is also seen as the stated interest rate.

The real interest rate is the interest rate which has been adjusted to remove the effect of inflation. That is, to get the real interest rate, take the nominal interest rate and subtract the inflation rate. therefore, we can use the following formula.

Real Interest Rate =  Nominal Interest Rate - Inflation Rate.  

In fact the real interest rate can be sen as the real cost of borrowing money.

You might be interested in
Suppose you and a classmate are playing a game where your classmate proposes a division of​ $1.00. ​ Then, you either accept or
pochemuha

Answer: The correct answers are "A. Accept" and "$ 0.01".

Explanation: Given that we talk about optimal strategy when maximizing the expected profit by the player:

In the first case It is convenient to accept the proposal and keep $ 0.12, instead of rejecting it and running out of nothing.

And in the second case it is convenient to give the classmate as little as possible so that he accepts and we have a greater profit.

4 0
3 years ago
The following information relates to Kew Company's Vale Division for last year: sales .................................. $500,00
-Dominant- [34]

Answer:

$114,000

Explanation:

The computation of the residual income is shown below:

As we know that

Residual Income = Net operating Income - Average Operating assets × Required rate of return

where,

Net Operating Income is

= Sales Revenue - Variable Costs - Fixed Costs

= $500,000 - $300,000 - $50,000

= $150,000

And,

Average operating Assets is

= Net Operating Income ÷ Return on Investment

= $150,000 ÷ 0.25

= $600,000

So, the residual income is

= $150,000 - $600,000 × 6%

= $150,000 - $36,000

= $114,000

3 0
3 years ago
The fact that the price of diamonds is higher than the price of water:
STALIN [3.7K]

Answer: D

Explanation:

Behavioral economics studies the impact of cognitive, psychological, cultural, emotional and social factors on individuals economic decisions. Behavioral economics is concerned with the extent of rationality of individuals, firms and governments. The study includes how market choices are made and the components that propel public choices.

Behavioral economics is important because it gives us an idea about how the mind of humans work. The greater the supply of a particular good, the more we use the good, the less we appreciate it. There are oceans of water and we always get water easily but there are fewer diamonds embedded and hidden in rocks which are not cheap and readily available.

8 0
3 years ago
Which best explains how the law of demand affects consumers?
yuradex [85]
It helps tell producers when a price is too high
6 0
3 years ago
You just hung up the phone after a 3-hour conference call with your colleagues in India. After the call, one of your co-workers
Llana [10]

Answer: Examine your expectations for conducting the meeting and determine how they might be different than your Indian colleagues.

Explanation:

Cross-cultural communication looks at how people from different cultural backgrounds communicate among themselves. The aim of cross-cultural communication is to bring together people with cultural differencces in such a way that the cultural differences shouldn't be a barrier.

Cross-cultural communication is understanding ways by which culturally distinct individuals relate and communicate with each other.

Regarding the question, the best way to improve one's cross cultural communication will be to examine the expectations one has for conducting the meeting and then determine how the expectations might be different from my Indian colleagues.

6 0
3 years ago
Other questions:
  • A(n) _____________ questionnaire measures what it was intended to measure in the population being assessed.
    8·1 answer
  • Consumers who agree to a "no interest” installment plan should be aware of
    14·1 answer
  • What would be a best practice when managing the merchandise at a store?
    8·2 answers
  • order for the auto parts shop is $80; the holding cost of carrying 1 unit is $1.2 per year. The shop has 360 working days per ye
    12·2 answers
  • Jameson works for Fishy-Mart Corporation, a chain of superstores that sell large quantities of seafood. His job is to locate fut
    11·1 answer
  • If total spending rises from one year to the next, then which of the following could not be true?A. the economy is producing a l
    12·1 answer
  • When the price of ketchup rises by 15 percent, the demand for hot dogs falls by 1 percent. a. Calculate the cross-price elastici
    7·1 answer
  • Sumner sold equipment that it uses in its business for $32,000. Sumner bought the equipment a few years ago for $79,000 and has
    5·1 answer
  • You live in a culture in which people grow their own food and rarely have to buy food from others.One day,a researcher from the
    6·1 answer
  • A recessionary gap occurs when:
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!