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Corporate Finance · Quiz 1 · 27 Oct 2024 · September 2024 term

Question 4: The current average price level of goods in the economy o…

Question 4

+4 marksOne correct option

The current average price level of goods in the economy of Godzilla is 80 units. The prevailing nominal interest rate is 10%. If expected price level in the next period is 90 units, then the real interest rate in the economy is (approximately)

  1. A

    8.89%

  2. B

    12.5%

  3. C

    -2.5%

  4. D

    -1.11%

Show answer

Correct answer

  • C

    -2.5%

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Question 4 of 25 in the IIT Madras BS Corporate Finance (Corporate Finance) Quiz 1 paper sat on 27 Oct 2024, in the September 2024 term (IIT M DEGREE AN EXAM QDB2 27 Oct 2024). It carries 4 marks.

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