The ________ rate of interest is the actual rate charged by the supplier and paid by the demander of funds.

Question

Quizplus · Accepted Answer

The nominal rate of interest is the actual rate charged by the supplier and paid by the demander of funds. It is the stated interest rate on a loan, bond, or deposit account, without adjustments for inflation or other factors. The other options are not applicable to the actual rate charged and paid. The real rate adjusts for inflation, the risk-free rate is the rate for investments with no risk, and inflationary rates are the rates at which prices of goods and services are increasing over time.

The ________ Rate of Interest Is the Actual Rate Charged