MoneyKraft

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

Higher than 8%

Between 5% and 8%

Between 1% and 5%

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

Corporate Debentures

Equity shares

Bank deposit

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

lower

independent of

higher

Nominal and real returns

nominal and real returns

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

AUTHOR(s):Shreeja Thirani

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