2405. An interest rate which is quoted by brokers, banks and other financial institutions is classified as

annuity rate
perpetuity rate
nominal rate
external rate of return
✅ The correct answer is C.
An interest rate which is quoted by brokers, banks and other financial institutions is classified as nominal rate. Nominal interest rate refers to the interest rate before taking inflation into account. Nominal can also refer to the advertised or stated interest rate on a loan, without taking into account any fees or compounding of interest.

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