The effective rate of interest will always be ____ the nominal rate.
A) greater than
B) equal to
C) less than
D) equal to or greater than

Name: The effective rate of interest will always be ____ the nominal rate. A) greater than B) equal to C) less than D) equal to or greater than
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Question

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The effective rate of interest takes into account the compounding effect within a given period, which can make it equal to or greater than the nominal rate, depending on the frequency of compounding.

The Effective Rate of Interest Will Always Be ____ the Nominal