If the Money Discount Rate is 19% and Inflation Rate is 12%, then the Real Discount Rate is:

Answer: Option D

The formula to calculate the Real Discount Rate is:

Real Rate = [(1 + Money Rate) / (1 + Inflation Rate)] - 1

Substitute the given values:

Real Rate = [(1 + 0.19) / (1 + 0.12)] - 1

Real Rate = (1.19 / 1.12) - 1

Real Rate = 1.0625 - 1 = 0.0625 or 6.25%

Conclusion: The Real Discount Rate is 6.25%, so the correct answer is Option D.