BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the below is NOT a major component of interest rates?
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Real rate
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Inflation premium
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Historical interest rates
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Default premium
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Explanation:
Detailed explanation-1: -There are essentially three main types of interest rates: the nominal interest rate, the effective rate, and the real interest rate. The nominal interest of an investment or loan is simply the stated rate on which interest payments are calculated.
Detailed explanation-2: -Interest Rate in the United States averaged 5.42 percent from 1971 until 2023, reaching an all time high of 20.00 percent in March of 1980 and a record low of 0.25 percent in December of 2008.
There is 1 question to complete.