Examveda
Examveda

Periodic rate if it is multiplied with per year number of compounding periods is called

A. extrinsic rate of return

B. intrinsic rate of return

C. annual rate of return

D. nominal annual rate

Answer: Option D

Solution(By Examveda Team)

Periodic rate if it is multiplied with per year number of compounding periods is called nominal annual rate. The nominal interest rate is the interest rate before taking inflation into account, in contrast to real interest rates and effective interest rates.

This Question Belongs to Commerce >> Financial Management

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