What name is given to the rate of exchange between certain future consumption and certain current consumption, when there is no inflation and no risk?
A) Pure rate of interest
B) Internal rate of return
C) Inflation proofing
D) Net rate of return

Question

Quizplus · Accepted Answer

The pure rate of interest is the rate of exchange between certain future consumption and certain current consumption in a situation where there is no inflation or risk. It is also called the real interest rate. Option B, C, and D do not accurately describe this concept.

What Name Is Given to the Rate of Exchange Between