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Forward Rate
The predetermined price for a transaction that will occur at a specific future date, used in the context of currency and interest rate markets.
Interest Rate Parity
A theory that suggests the difference in interest rates between two countries is equal to the differential between the forward exchange rate and the spot exchange rate.
Nominal Rate
The interest rate before adjustments for inflation; essentially, the face value rate of interest.
Inflation
How fast the general price index for merchandise and services escalates, corroding the purchasing strength.
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