If You Are a Banker,should You Consider the Nominal or Real

question 117

Essay

If you are a banker,should you consider the nominal or real interest rate when deciding which rate to charge for a loan? Explain.

---

Definitions:

Common Law

A body of law based on judicial decisions and precedent rather than statutory laws.

Additional Terms

Extra conditions or provisions added to an agreement or contract that were not included in the original draft.

Acceptance

In contract law, the unconditional agreement to the terms of an offer, which creates a binding contract.

UCC

The Uniform Commercial Code consists of regulations that oversee business dealings within the United States.