effective annual rate is always:\no a) less than nominal rate\no b) equal to nominal rate\no c) greater than…

Brief Explanations:

The formula for the effective - annual - rate (EAR) is $EAR=(1 + \frac{r}{n})^{n}-1$, where $r$ is the nominal annual rate and $n$ is the number of compounding periods per year. When $n = 1$ (annual compounding), $EAR=r$. When $n>1$ (more frequent compounding), $(1+\frac{r}{n})^{n}-1>r$. So, the effective annual rate is greater than or equal to the nominal rate.

Answer:

C. Greater than or equal to nominal rate