Examlex
The process depicted in the following figure takes place in
Real Rate
The interest rate that has been adjusted for inflation, reflecting the true cost of borrowing or the true yield on an investment.
Inflation
Inflation refers to the rate at which the general level of prices for goods and services is rising, eroding purchasing power.
Loan
A loan is an amount of money that is lent to a borrower, who agrees to repay it, plus interest, over a specified period of time.
Capital Markets
Financial markets where long-term debt or equity-backed securities are bought and sold.
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