In 2012, due to the economic crisis and the Federal Reserve's efforts to stimulate the economy, many interest rates, particularly short-term ones, were kept very low, with some even below 1%. It is worth noting that this answer may not apply to all types of interest rates, such as credit card rates, which tend to be much higher.

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By 2012

Question 73

Multiple Choice

By 2012:

A) most interest rates were about 5%.
B) many interest rates were below 1%.
C) almost every interest rate was above 10%.
D) federal law required that the interest rate ceiling on all loans be capped at 11.5%.
E) the real interest rate was positive, but the nominal interest rate was less than the real rate.

Correct Answer: