asked 78.1k views
3 votes
true or false, Even with interest-rate a bank pays on your account the real rate of return on that negative because of inflation

asked
User Tschiela
by
7.9k points

2 Answers

2 votes

Answer:

True

Step-by-step explanation:

I don't know why this is the answer, but i put true as my answer and it was correct.

answered
User Indrasinh Bihola
by
8.1k points
2 votes

This may be true or false depending on the situation.

Step-by-step explanation:

If countering in the inflation, banks were giving negative values all the time to their consumers they would not survive in the game.

But this is not to say this is not a practice that has been done to the unsuspecting people who have wanted to invest money.

They are being given policies and rates that after countering inflation are actually in loss for them as they do not grow as much as the money would have devalued by then.

This is however quite rare and is a malpractice.

answered
User Nitin Wahale
by
8.2k points

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