Compound interest is important in keeping up with the rate of inflation.TrueFalse

compound interest.

Compounding means earning interest on the principal and interest. True False

is an effective method to control inflation in the economy.ans.Selective control of creditNone of the aboveBank rate policyCash reserve ratio Previous Marked for Review Next

The less frequent is the compounding the lower is the future value of the investment for a given interest rate. True False

The difference between a nominal interest rate and the rate of inflation is the _____.A.nominal interest rateB.annual percentage yieldC.compound interestD.real interest rateSUBMITarrow_backPREVIOUS