The interest rate quoted in the financial markets for borrowing and lending transactions is the:
A)real interest rate.
B)prime lending rate.
C)nominal interest rate.
D)cash rate.

Question

Quizplus · Accepted Answer

The nominal interest rate is the interest rate quoted in the financial markets for borrowing and lending transactions. It is the rate that does not account for inflation, unlike the real interest rate. The prime lending rate is the interest rate that commercial banks charge their most creditworthy customers, and the cash rate is the interest rate that a country's central bank uses to influence its economy.

The Interest Rate Quoted in the Financial Markets for Borrowing