The market interest rate in alpha is 7% and the market interest rate in beta is 10%, but the inflation rate in alpha is 3% and inflation rate in beta is 8%. which of the following statements is true?
a. the real interest rate is higher in alpha, but the nominal interest rate is higher in beta. b. the real interest rate is lower in alpha, but the nominal interest rate is lower in beta. c. both the real and nominal interest rates are higher in alpha. d. both the real and nominal interest rates are higher in beta.
Solved
Show answers
More tips
- B Business and Finance How to Get Your Money Back When Lending? Top 7 Ways...
- S Sport How to Learn Swimming? Simple Tips for Beginners...
- P Photography and Videography Understanding HDR: How It Works and Why You Need It...
- G Goods and services Which TV is better - LCD or Plasma?...
- S Sport How to Learn to Pull Up on Monkey Bars?...
- L Leisure and Entertainment Scrapbooking: What is it and Why is it Becoming More Popular?...
- C Computers and Internet Where did torrents.ru move to?...
- B Business and Finance Understanding Cash Flow: What It Is and How It Works...
- C Computers and Internet What Are Peers and Seeds in Torrenting?...
- H Health and Medicine 10 Simple Techniques on How to Boost Your Mood...
Answers on questions: Business
- B Business When u make a website is it supposed to have a credit card number?...
- B Business Evan is paid $590 biweekly. How much does he make per week?...
- B Business Is there one best way of managment explain...
- B Business Carl receives $6.10 an hour for the first 40 hours he works and time and a half for overtime. If he works 45 hours how much does he earn for the week...
- B Business Pt abc memperoleh kredit investasi dari bank mayapada senilai 100.000.000 bunga dibebankankan sebesar 11% dihitung secara flat dan diangsur 5 bulan. buatlah tabel...
- B Business You just deposited $4,000 in cash into a checking account at the local bank. Assume that banks lend out all excess reserves and there are no leaks in the banking system....
- B Business On August 1, 2019, Pereira Corporation has sold 1,600 Wiglows to Mendez Company at $450 each. Mendez also purchased a 1-year service-type warranty on all the Wiglows...
- B Business an entrepreneur starts a small firm with one machine and a small factory space and employs one person initially. with the aid of appropriate diagrams or tables and...
- B Business Assume that the custodian of a $450 petty cash fund has $62.50 in coins and currency plus $382.50 in receipts at the end of the month. The entry to replenish the petty...
- B Business An insurer wishes to compare the information given in an insurance application with previous insurance applications by the same applicant but for different companies....
Ответ:
A. The real interest rate is higher in Alpha, but the nominal interest rate is higher in Beta.
Explanation:
Real interest rate: the interest rate after taking into consideration the inflation effect, which decreases the interest real return.
real-rate = nominal - inflation
Alpha: 7% - 3% = 4% real interest rate
Beta: 10% - 8% = 2% real interest rate
Alpha real interest rate is higher than Beta
alpha nominal rate: 7%
beta nominal rate: 10%
the Beta nominal rate is higher than Alpha.
This makes option A the only correct answer.
Ответ:
c
Explanation:
salary is a regular fixed payment that a person earns for performing work during a specific period of time.