Neco 2021 Economics Question 45

Practice objective / multiple choice question 45 from the 2021 Neco Economics examination.

Neco 2021 Economics Objective / Multiple Choice Medium Difficulty
Question 45 NECO • 2021 • ECONOMICS • objective

A bank offers a nominal interest rate of 12\% per annum. The current inflation rate is 8\%. An investor requires a real return of at least 3\% per annum. Using the Fisher equation, determine the real interest rate earned and state whether the investment meets the investor's requirement. Express the real rate to two decimal places.

Answer Options

A. 3.00%, No
B. 4.00%, Yes
C. 2.96%, No
Correct Answer D. 3.70%, Yes
Correct Answer
D
Correct Option:
3.70%, Yes

About This Question

This is Neco 2021 Economics Question 45. It is one of the objective questions from the 2021 Neco Economics examination.

Difficulty level: Medium .

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