The nominal interest rate is:
A)the everyday notion of the interest rate.
B)the reported interest rate,not adjusted for the effects of inflation.
C)the amount of interest the bank pays you for saving or charges you for borrowing.
D)All of these statements are true.

Question

Quizplus · Accepted Answer

The nominal interest rate is commonly understood as the everyday notion of the interest rate, the reported rate not adjusted for inflation, and the rate at which banks pay or charge interest.

The Nominal Interest Rate Is