Examlex
The debt created by a business when it makes a purchase on account is referred to as an
Nominal Interest Rate
The rate of interest charged on a loan without taking the inflation rate into account.
Real Interest Rate
It represents the rate of interest an investor expects to receive after allowing for inflation, fundamentally indicating the true return on an investment.
Inflation Rate
The annual rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. Central banks attempt to limit inflation to maintain a healthy economy.
Nominal Interest Rate
The headline rate of interest paid on a loan or received on an investment, not adjusted for inflation.
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