Civil Engineering > GATE 2020 SET-2 > Reading Comprehension
Nominal interest rate is defined as the amount paid by the borrower to the lender for using the borrowed amount for a specific period of time. Real interest rate calculated on the basis of actual value (inflation-adjusted), is approximately equal to the difference between nominal rate and expected rate of inflation in the economy.
Which of the following assertions is best supported by the above information?
A
Under high inflation, real interest rate is low and borrowers get benefited.
B
Under low inflation, real interest rate is high and borrowers get benefited.
C
Under high inflation, real interest rate is low and lenders get benefited.
D
Under low inflation, real interest rate is low and borrowers get benefited.

Correct : a

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