Question 18 You borrow money for a new car at a rate of 5%; inflation is at 4%. From this information, we know that the nominal interest rate is 4% the real interest rate is 4% the nominal interest rate is -1% the real interest rate is -1% the real interest rate is 1%
You borrow money for a new car at a rate of 5%; inflation is at 4%. From this information, we know that
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the nominal interest rate is 4%
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the real interest rate is 4%
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the nominal interest rate is -1%
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the real interest rate is -1%
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the real interest rate is 1%
Question 19
In financial markets, firms and governments in search of funds to pay for their daily operations would be the
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savers of these funds.
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both the buyers and sellers of these funds.
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lenders of these funds.
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buyers of these funds.
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sellers of these funds.
Question 20The face
value of a bond is the-
value of the bond at maturity plus the price of the bond at purchase.
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value of the bond at maturity minus the price of the bond at purchase.
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price of the bond at purchase.
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value of the bond at maturity, or the amount due at repayment.
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price of the bond at purchase minus the face value of the bond.
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