Question

A main difference among real and nominal interest proceeds is that

a.

real returns adjust for inflation and nominal returns do not

b.

real returns use actual cash flows and nominal use expected cash flows

c.

real interest adjusts for commissions and nominal returns do not

d.

real returns show highest possible return and nominal returns show lowest possible returns

Answer: (a).real returns adjust for inflation and nominal returns do not

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Q. A main difference among real and nominal interest proceeds is that

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