Neco Model Questions Vol1 2024 Economics Question 47
Practice objective / multiple choice question 47 from the 2024 Neco Model Questions Vol1 Economics examination.
A commercial bank offers a nominal interest rate of 12 % per annum, compounded annually. Expected inflation for the next year is 8 % (based on the CPI). A Treasury bond provides a real return of 3 % per annum (inflation‑adjusted). Which investment yields the higher expected nominal return, and by how many percentage points does it exceed the other? Give your answer rounded to two decimal places.
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About This Question
This is Neco Model Questions Vol1 2024 Economics Question 47. It is one of the objective questions from the 2024 Neco Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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