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What are the five major types of external forces that should be examined as part of an external audit? Give an example of each type of force.
Real Interest Rate
The interest rate adjusted for inflation, reflecting the true cost of borrowing and the real yield to investors.
Real Interest Rate
The interest rate adjusted for inflation, representing the true cost of borrowing and the real yield to savers.
Nominal Interest Rate
The interest rate as stated without adjustment for inflation, representing the actual percentage amount charged for borrowing money.
Inflation Rate
The percentage increase in the price level of goods and services in an economy over a given period of time.
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