The given statement is TRUE
Explanation:
When the modification is done in order to remove the results of inflation and to show the real cost of the amount or money that has been raised, or the real yield on the amount of money that is given by the lender is the real interest rate.
When the total amount inclusive of the principal amount that has been borrowed from the lender along with the interest on it is to be paid back, then such interest rate is known as the money interest rate.
Therefore, as per the given information in the question, the statement is TRUE.
The given statement is TRUE
Explanation:
When the modification is done in order to remove the results of inflation and to show the real cost of the amount or money that has been raised, or the real yield on the amount of money that is given by the lender is the real interest rate.
When the total amount inclusive of the principal amount that has been borrowed from the lender along with the interest on it is to be paid back, then such interest rate is known as the money interest rate.
Therefore, as per the given information in the question, the statement is TRUE.
