All Courses
Get the App Signup / Login
Sign in Open App
Commerce Exam  >  Commerce Tests  >  Applied Mathematics for Class 11  >  Test: Nominal Rate of Return - Commerce MCQ

Test: Nominal Rate of Return - Commerce MCQ


Test Description

15 Questions MCQ Test Applied Mathematics for Class 11 - Test: Nominal Rate of Return

Test: Nominal Rate of Return for Commerce 2024 is part of Applied Mathematics for Class 11 preparation. The Test: Nominal Rate of Return questions and answers have been prepared according to the Commerce exam syllabus.The Test: Nominal Rate of Return MCQs are made for Commerce 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Nominal Rate of Return below.
Solutions of Test: Nominal Rate of Return questions in English are available as part of our Applied Mathematics for Class 11 for Commerce & Test: Nominal Rate of Return solutions in Hindi for Applied Mathematics for Class 11 course. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free. Attempt Test: Nominal Rate of Return | 15 questions in 15 minutes | Mock test for Commerce preparation | Free important questions MCQ to study Applied Mathematics for Class 11 for Commerce Exam | Download free PDF with solutions
Test: Nominal Rate of Return - Question 1
Save

If an investment earns a nominal rate of return of 9% and the inflation rate is 3%, what is the real rate of return?

Detailed Solution for Test: Nominal Rate of Return - Question 1

Real rate of return = Nominal rate of return - Inflation rate = 9% - 3% = 6%

Test: Nominal Rate of Return - Question 2
Save

A bond offers a nominal rate of return of 7% and the expected inflation rate is 2%. What is the real rate of return?

Detailed Solution for Test: Nominal Rate of Return - Question 2

Real rate of return = Nominal rate of return - Inflation rate = 7% - 2% = 5%

1 Crore+ students have signed up on EduRev. Have you? Download the App
Test: Nominal Rate of Return - Question 3
Save

If the nominal rate of return is 10% and the real rate of return is 6%, what is the inflation rate?

Detailed Solution for Test: Nominal Rate of Return - Question 3

Inflation rate = Nominal rate of return - Real rate of return = 10% - 6% = 4%

Test: Nominal Rate of Return - Question 4
Save

An investment earns a nominal rate of return of 12% and the real rate of return is 8%. What is the inflation rate?
Detailed Solution for Test: Nominal Rate of Return - Question 4

Inflation rate = Nominal rate of return - Real rate of return = 12% - 8% = 4%

Test: Nominal Rate of Return - Question 5
Save

If the nominal rate of return is 8% and the inflation rate is 4%, what is the expected real rate of return?
Detailed Solution for Test: Nominal Rate of Return - Question 5

Real rate of return = Nominal rate of return - Inflation rate = 8% - 4% = 4%

Test: Nominal Rate of Return - Question 6
Save

A stock provides a nominal rate of return of 7%. If the real rate of return is 3%, what is the inflation rate?
Detailed Solution for Test: Nominal Rate of Return - Question 6

Inflation rate = Nominal rate of return - Real rate of return = 7% - 3% = 4%

Test: Nominal Rate of Return - Question 7
Save

An investor receives a nominal rate of return of 6% on their portfolio, and the inflation rate is 2%. What is the real rate of return?
Detailed Solution for Test: Nominal Rate of Return - Question 7

Real rate of return = Nominal rate of return - Inflation rate = 6% - 2% = 3%

Test: Nominal Rate of Return - Question 8
Save

If the nominal rate of return is 11% and the real rate of return is 5%, what is the inflation rate?
Detailed Solution for Test: Nominal Rate of Return - Question 8

Inflation rate = Nominal rate of return - Real rate of return = 11% - 5% = 6%

Test: Nominal Rate of Return - Question 9
Save

A bond offers a nominal rate of return of 5%, and the real rate of return is 2%. What is the inflation rate?
Detailed Solution for Test: Nominal Rate of Return - Question 9

Inflation rate = Nominal rate of return - Real rate of return = 5% - 2% = 7%

Test: Nominal Rate of Return - Question 10
Save

An investment earns a nominal rate of return of 8%, and the expected inflation rate is 3%. What is the real rate of return?
Detailed Solution for Test: Nominal Rate of Return - Question 10

Real rate of return = Nominal rate of return - Inflation rate = 8% - 3% = 5%

Test: Nominal Rate of Return - Question 11
Save

What does the nominal rate of return represent?
Detailed Solution for Test: Nominal Rate of Return - Question 11

The nominal rate of return represents the rate of return earned on an investment before adjusting for the effects of inflation.

Test: Nominal Rate of Return - Question 12
Save

What happens to the nominal rate of return if inflation increases?
Detailed Solution for Test: Nominal Rate of Return - Question 12

When inflation increases, the nominal rate of return typically increases as well, assuming other factors remain constant. This is because investors may demand higher nominal returns to compensate for the eroding purchasing power caused by inflation.

Test: Nominal Rate of Return - Question 13
Save

Which of the following is true about the nominal rate of return?
Detailed Solution for Test: Nominal Rate of Return - Question 13

The nominal rate of return includes the effects of inflation, whereas the real rate of return adjusts for inflation. Since the nominal rate of return includes inflation, it is typically higher than the real rate of return, except in cases where inflation is negative.

Test: Nominal Rate of Return - Question 14
Save

Which of the following is NOT a component of nominal rate of return?
Detailed Solution for Test: Nominal Rate of Return - Question 14

The nominal rate of return includes components such as the real rate of return, inflation rate, and any other premiums or returns associated with the investment, such as risk premium or expected return. The real rate of return is a separate component used to calculate the nominal rate of return.

Test: Nominal Rate of Return - Question 15
Save

Which of the following accurately describes the relationship between nominal rate of return and real rate of return?
Detailed Solution for Test: Nominal Rate of Return - Question 15

The nominal rate of return is composed of the real rate of return plus the inflation rate. Mathematically, it can be expressed as: Nominal rate of return = Real rate of return + Inflation rate. This relationship reflects how inflation affects the nominal rate of return.

87 videos|88 docs|62 tests
Join Course
Information about Test: Nominal Rate of Return Page
In this test you can find the Exam questions for Test: Nominal Rate of Return solved & explained in the simplest way possible. Besides giving Questions and answers for Test: Nominal Rate of Return, EduRev gives you an ample number of Online tests for practice

Top Courses for Commerce

Download as PDF

Top Courses for Commerce

Important Questions for Nominal Rate of Return

Find all the important questions for Nominal Rate of Return at EduRev.Get fully prepared for Nominal Rate of Return with EduRev's comprehensive question bank and test resources. Our platform offers a diverse range of question papers covering various topics within the Nominal Rate of Return syllabus. Whether you need to review specific subjects or assess your overall readiness, EduRev has you covered. The questions are designed to challenge you and help you gain confidence in tackling the actual exam. Maximize your chances of success by utilizing EduRev's extensive collection of Nominal Rate of Return resources.

Nominal Rate of Return MCQs with Answers

Prepare for the Nominal Rate of Return within the Commerce exam with comprehensive MCQs and answers at EduRev. Our platform offers a wide range of practice papers, question papers, and mock tests to familiarize you with the exam pattern and syllabus. Access the best books, study materials, and notes curated by toppers to enhance your preparation. Stay updated with the exam date and receive expert preparation tips and paper analysis. Visit EduRev's official website today and access a wealth of videos and coaching resources to excel in your exam.

Online Tests for Nominal Rate of Return Applied Mathematics for Class 11

Practice with a wide array of question papers that follow the exam pattern and syllabus. Our platform offers a user-friendly interface, allowing you to track your progress and identify areas for improvement. Access detailed solutions and explanations for each test to enhance your understanding of concepts. With EduRev's Online Tests, you can build confidence, boost your performance, and ace Nominal Rate of Return with ease. Join thousands of successful students who have benefited from our trusted online resources.
© EduRev
Education Revolution
Signup to see your scores go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup