Which of the following describes the interest rate in addition to the inflation rate expected on a risk-free loan?

Question

Quizplus · Accepted Answer

The real rate represents the interest rate in addition to the inflation rate expected on a risk-free loan. The nominal rate includes the inflation rate, while the risk-free rate is the rate of return on a risk-free investment such as a Treasury bill. The prime rate is the interest rate that commercial banks charge their most creditworthy customers.

Which of the Following Describes the Interest Rate in Addition