9
QuizMultiple Choice

Inflation, Interest Rates, and Investment Decisions — Quiz

Question 9 • Personal Finance

An account earns 7% interest while inflation is 2%. What is the real return?

Answer
A
-5%
B
5%
C
2%
D
9%

Explanation

The real return is approximately the interest rate minus the inflation rate: 7% − 2% = 5%. So the correct choice is 5%.

AI-written and checked against the verified answer.

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