Interest rates or rates of return on investment that have been adjusted for the effects of inflation are called:

A) Real rates.
B) Nominal rates.
C) Effective rates.
D) Stripped rates.
E) Coupon rates.

Real Rates

Interest rates or rates of return that have been adjusted for inflation, showing the real purchasing power of the amount.

Nominal Rates

Interest rates or rates of return on investment that have not been adjusted for inflation, representing the face value of financial instruments.

Effective Rates

The actual interest rate that a borrower pays on a loan or receives on a deposit, taking into account the compounding of interest.