The real interest rate tells you

A) how fast the number of dollars in your bank account rises over time.
B) how fast the purchasing power of your bank account rises over time.
C) the number of dollars in your bank account today.
D) the purchasing power of your bank account today.

Real Interest Rate

The rate of interest an investor expects to receive after allowing for inflation, reflecting the true cost of borrowing and the real yield on an investment.

Purchasing Power

A currency's value measured by the volume of goods or services purchasable with one monetary unit.

Bank Account

A financial arrangement made with a banking institution where funds can be deposited for safekeeping, which can include various types such as savings, checking, and deposit accounts.