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Meredith Has Purchased a Guaranteed Income Certificate (GIC) in Canada

Question 70

Multiple Choice

Meredith has purchased a guaranteed income certificate (GIC) in Canada. This financial instrument pays her 1% interest per year. However, inflation during the same year is 2%. What was Meredith's real interest rate on her GIC?


A) 3%
B) -1%
C) 1%
D) 2%

Correct Answer:

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