Answers OK-Personal Financial Literacy S1 – EDGNTY-83861 26-27 Principles of InvestmentQuestion 5

5

QuizMultiple Choice

Principles of Investment

Question 5 • OK-Personal Financial Literacy S1 – EDGNTY-83861 26-27

Why should investors know the difference between nominal and real interest rates?

Answer

A

to know what they are likely to lose

B

to understand changes in monetary policy

C

to guarantee an investment’s profitability

D

to recognize the effects of inflation

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