Post Utme Lasu 2017 Economics Question 24

Practice objective / multiple choice question 24 from the 2017 Post Utme Lasu Economics examination.

Post Utme Lasu 2017 Economics Objective / Multiple Choice

Question 24 POST_UTME_LASU • 2017 • ECONOMICS • objective

A country's inflation rate is 8% per annum, and its nominal interest rate is 10% per annum. If the real interest rate is 2% per annum, what is the expected rate of return on a 2-year bond?

Correct Answer A. \( 1.02^2 \)

B. \( 1.08^2 \)

C. \( 1.10^2 \)

D. \( 1.02 \times 1.10 \)

Correct Answer

Correct Option:

\( 1.02^2 \)

This is Post Utme Lasu 2017 Economics Question 24. It is one of the objective questions from the 2017 Post Utme Lasu Economics examination.

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