{"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>[amp_mcq option1=&#8221;real returns adjust for inflation and nominal returns do not&#8221; option2=&#8221;real returns use actual cash flows and nominal returns use expected cash flows&#8221; option3=&#8221;real returns adjust for commissions and nominal returns do not&#8221; option4=&#8221;real returns show the highest possible return and nominal returns show the lowest possible return&#8221; correct=&#8221;option1&#8243;]<!--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>[amp_mcq option1=&#8221;real returns adjust for inflation and nominal returns do not&#8221; option2=&#8221;real returns use actual cash flows and nominal returns use expected cash flows&#8221; option3=&#8221;real returns adjust for commissions and nominal returns do not&#8221; option4=&#8221;real returns show the highest possible return and nominal returns show the lowest possible return&#8221; correct=&#8221;option1&#8243;]<\/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-57815","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"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 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\/a-major-difference-between-real-and-nominal-returns-is-that_______________\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A major difference between real and nominal returns is that_______________.\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;real returns adjust for inflation and nominal returns do not&#8221; option2=&#8221;real returns use actual cash flows and nominal returns use expected cash flows&#8221; option3=&#8221;real returns adjust for commissions and nominal returns do not&#8221; option4=&#8221;real returns show the highest possible return and nominal returns show the lowest possible return&#8221; correct=&#8221;option1&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/a-major-difference-between-real-and-nominal-returns-is-that_______________\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-16T01:08:36+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"A major difference between real and nominal returns is that_______________.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/a-major-difference-between-real-and-nominal-returns-is-that_______________\/","og_locale":"en_US","og_type":"article","og_title":"A major difference between real and nominal returns is that_______________.","og_description":"[amp_mcq option1=&#8221;real returns adjust for inflation and nominal returns do not&#8221; option2=&#8221;real returns use actual cash flows and nominal returns use expected cash flows&#8221; option3=&#8221;real returns adjust for commissions and nominal returns do not&#8221; option4=&#8221;real returns show the highest possible return and nominal returns show the lowest possible return&#8221; correct=&#8221;option1&#8243;]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/a-major-difference-between-real-and-nominal-returns-is-that_______________\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-16T01:08:36+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/a-major-difference-between-real-and-nominal-returns-is-that_______________\/","url":"https:\/\/exam.pscnotes.com\/mcq\/a-major-difference-between-real-and-nominal-returns-is-that_______________\/","name":"A major difference between real and nominal returns is that_______________.","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2024-04-16T01:08:36+00:00","dateModified":"2024-04-16T01:08:36+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/a-major-difference-between-real-and-nominal-returns-is-that_______________\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/a-major-difference-between-real-and-nominal-returns-is-that_______________\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/a-major-difference-between-real-and-nominal-returns-is-that_______________\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"Financial management","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/financial-management\/"},{"@type":"ListItem","position":3,"name":"A major difference between real and nominal returns is that_______________."}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/57815","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=57815"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/57815\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=57815"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=57815"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=57815"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}