Neco 2017 Economics Question 48

Practice objective / multiple choice question 48 from the 2017 Neco Economics examination.

Neco 2017 Economics Objective / Multiple Choice Medium Difficulty
Question 48 NECO • 2017 • ECONOMICS • objective

A bank offers a nominal interest rate of 15% per annum. Expected inflation for the year is 9%. An alternative investment guarantees a real interest rate of 5% per annum. Using the Fisher equation, which investment provides the higher real return?

Answer Options

Correct Answer A. Bank
B. Alternative investment
C. Both investments
D. Neither investment
Correct Answer
A
Correct Option:
Bank

About This Question

This is Neco 2017 Economics Question 48. It is one of the objective questions from the 2017 Neco Economics examination.

Difficulty level: Medium .

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