Suzanne just obtained a car loan at a 5% interest rate. This is a _____ interest rate.
A) real
B) marginal
C) total
D) nominal

Name: Suzanne just obtained a car loan at a 5% interest rate. This is a _____ interest rate. A) real B) marginal C) total D) nominal
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Question

Quizplus · Accepted Answer

The interest rate quoted by financial institutions, like the 5% interest rate on Suzanne's car loan, is referred to as the nominal interest rate. This rate does not account for inflation.

Suzanne Just Obtained a Car Loan at a 5% Interest