Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) The difference between a nominal interest rate and the rate of inflation is called the spread.
B) The difference between a nominal interest rate and the rate of inflation is called the interest rate spread.
C) The difference between a nominal interest rate and the rate of inflation is called the accumulated interest rate.
D) The difference between a nominal interest rate and the rate of inflation is called the real interest rate.