Interest rates or rates of return on investments that have been adjusted for the effects of inflation are called ________ rates.
A)real
B)nominal
C)effective
D)stripped
E)coupon

Question

Quizplus · Accepted Answer

Real interest rates are adjusted for inflation, whereas nominal interest rates do not take inflation into account. Effective rates are usually used to describe the percentage yield actually earned on an investment over a particular holding period, while stripped and coupon rates are specific terms related to bonds.

Interest Rates or Rates of Return on Investments That Have