{"id":57815,"date":"2024-04-16T01:08:36","date_gmt":"2024-04-16T01:08:36","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=57815"},"modified":"2024-04-16T01:08:36","modified_gmt":"2024-04-16T01:08:36","slug":"a-major-difference-between-real-and-nominal-returns-is-that_______________","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/a-major-difference-between-real-and-nominal-returns-is-that_______________\/","title":{"rendered":"A major difference between real and nominal returns is that_______________."},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a9777f4ef977\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"true\">\r\n                    real returns adjust for inflation and nominal returns do not                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    real returns use actual cash flows and nominal returns use expected cash flows                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    real returns adjust for commissions and nominal returns do not                <\/div>\r\n                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is A. Real returns adjust for inflation and nominal returns do not.<\/p>\n<p>Nominal returns are the actual returns on an investment, while real returns are the returns adjusted for inflation. Inflation is the rate at which prices for goods and services are rising. When inflation is high, nominal returns will be higher than real returns, because the value of money is decreasing. When inflation is low, nominal returns will be closer to real returns.<\/p>\n<p>Option B is incorrect because real returns use actual cash flows, while nominal returns can use either actual or expected cash flows.<\/p>\n<p>Option C is incorrect because real returns adjust for inflation, while nominal returns do not.<\/p>\n<p>Option D is incorrect because real returns show the returns after inflation has been taken into account, while nominal returns do not.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Subscribe on YouTube<\/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":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>A major difference between real and nominal returns is that_______________.<\/title>\n<meta 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