{"id":46398,"date":"2024-04-15T22:11:47","date_gmt":"2024-04-15T22:11:47","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=46398"},"modified":"2024-04-15T22:11:47","modified_gmt":"2024-04-15T22:11:47","slug":"if-the-money-discount-rate-is-19-and-inflation-rate-is-12-then-the-real-discount-rate-is","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/if-the-money-discount-rate-is-19-and-inflation-rate-is-12-then-the-real-discount-rate-is\/","title":{"rendered":"If the Money Discount Rate is 19% and Inflation Rate is 12%, then the Real Discount Rate is:"},"content":{"rendered":"

[amp_mcq option1=”7%” option2=”5%” option3=”5.70%” option4=”6.25%” correct=”option1″]<\/p>\n

The correct answer is A. 7%.<\/p>\n

The real discount rate is the rate of return that an investor expects to earn after adjusting for inflation. It is calculated by subtracting the inflation rate from the money discount rate.<\/p>\n

In this case, the money discount rate is 19% and the inflation rate is 12%. Therefore, the real discount rate is 19% – 12% = 7%.<\/p>\n

Option B is incorrect because it is the money discount rate, not the real discount rate.<\/p>\n

Option C is incorrect because it is the inflation rate, not the real discount rate.<\/p>\n

Option D is incorrect because it is the average of the money discount rate and the inflation rate, not the real discount rate.<\/p>\n","protected":false},"excerpt":{"rendered":"

[amp_mcq option1=”7%” option2=”5%” option3=”5.70%” option4=”6.25%” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-46398","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\nIf the Money Discount Rate is 19% and Inflation Rate is 12%, then the Real Discount Rate is:<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/if-the-money-discount-rate-is-19-and-inflation-rate-is-12-then-the-real-discount-rate-is\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"If the Money 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