The ________ rate of interest is the actual rate charged by the supplier and paid by the demander of funds.
A) nominal
B) real
C) risk-free
D) inflationary

Question

Quizplus · Accepted Answer

The nominal rate of interest is the actual interest rate charged by the supplier of funds and paid by the demander of funds. This rate does not take into account inflation or other factors that can affect the actual value of the funds borrowed or lent.

The ________ Rate of Interest Is the Actual Rate Charged