1. Suppose inflation is 8%. What is the minimum nominal return that an investor should seek?

2. Due to inflation, the real return earned on a fixed deposit is ______ than the nominal return

3. During periods of rising inflation, which investment will provide the best real return?

Nominal and real returns

nominal and real returns

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  • Level - 6,3,8,6 BASIC

Learn about real and nominal returns and understand how inflation impacts real returns from investments.

AUTHOR(s):Shreeja Thirani

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