The Riegel-Neal Act of 1994 made reciprocity pacts

If the nominal interest rate in an economy is 6%, and the rate of inflation in the economy is 4%, the real interest rate in the economy is:

A) 10%. B) 24%. C) 1.5%. D) 2%.

If the current cash price is $8.80/bushel, storage costs are $0.15/bushel, August futures are currently trading at$9.20/bushel, and you expect the basis in July to be $0.20/bushel under August, then your expected profits from storing until July would be:

A. $0.05/bushel B. $-0.35/bushel C. $0.35/bushel D. $-0.05/bushel