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Social Studies, 10.10.2019 00:10 BABA761

Suppose that a bank wishes to make a 5% rate of return on a one-year loan but expects inflation over the course of the loan to be roughly 3%. which statement is true? as long as the bank charges a nominal interest rate of at least 5%, it will earn its expected return. if the bank charges 8% and the inflation rate is more than 3%, then the bank will have earned a higher rate of return than expected. if the bank charges 8% and the inflation rate is less than 3%, then the bank will have earned a higher rate of return than expected. if the bank charges an interest rate of 8% or higher, it will earn the expected return.

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