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Typologies and the stereotypes they produce are designed to discriminate against people.
Nominal Interest Rate
The named or quoted rate usually stated on an annually compounded basis. May be different from the effective rate due to non-annual compounding.
Real Interest Rate
The interest rate adjusted for inflation, reflecting the true cost of borrowing or real yield on an investment.
Inflation Premium
The additional interest rate that lenders demand to compensate for the loss of purchasing power of money due to inflation.
Yield Curve
The relationship between interest rates and the term of debt, generally expressed graphically. A normal yield curve is upsloping, reflecting rates that increase with increasing term. An inverted curve is downsloping.
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