Which of these is the interest rate that is actually observed in financial markets?

Question

Quizplus · Accepted Answer

Nominal interest rates are the interest rates that are actually observed and quoted in financial markets. They do not take into account inflation or other factors that can affect the true value of the interest rate. Therefore, they are the best choice for this question. Real interest rates and real risk-free rates adjust for inflation, while the market premium is a measure of the additional return that investors demand for taking on extra risk.

Which of These Is the Interest Rate That Is Actually