The rate of exchange between certain future dollars and certain current dollars is known as the pure rate of interest.

Name: The rate of exchange between certain future dollars and certain current dollars is known as the pure rate of interest.
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Question

Quizplus · Accepted Answer

The pure rate of interest is the rate at which future dollars and current dollars are exchanged, which is expressed in terms of interest rate or discount rate. Hence, the given statement is true.

The Rate of Exchange Between Certain Future Dollars and Certain