Waec Model Questions Vol1 2019 Economics Question 16

Practice objective / multiple choice question 16 from the 2019 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2019 Economics Objective / Multiple Choice Medium Difficulty
Question 16 WAEC_MODEL_QUESTIONS_VOL1 • 2019 • ECONOMICS • objective

The Consumer Price Index (CPI) was 120 in 2017, 126 in 2018 and 133 in 2019. A government bond offered a nominal interest rate of 12 % per annum each year. Using the exact Fisher relation, calculate the average real interest rate over the two-year period 2017‑2019 (i.e., the average of the real rates for 2017‑2018 and 2018‑2019). Give your answer to two decimal places as a percentage.

Answer Options

Correct Answer A. 6.38%
B. 4.89%
C. 5.12%
D. 7.45%
Correct Answer
A
Correct Option:
6.38%

About This Question

This is Waec Model Questions Vol1 2019 Economics Question 16. It is one of the objective questions from the 2019 Waec Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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