The advertised interest rate is the
A)nominal interest rate.
B)real interest rate.
C)expected rate of inflation.
D)nominal interest rate minus the expected rate of inflation.

Question

Quizplus · Accepted Answer

The advertised interest rate only represents the nominal interest rate, which is the interest rate before adjusting for inflation or other factors. The real interest rate is the nominal interest rate minus the inflation rate, which is not included in the advertised interest rate. The expected rate of inflation is a separate factor that can affect the real interest rate, but it is not part of the advertised rate.

The Advertised Interest Rate Is the