Examlex
Which of the following can be regarded as external data?
Nominal Rate
Refers to the interest rate before adjustments for inflation or other factors.
Effective Rate
The actual interest rate that borrowers pay or investors receive on a financial product, once all the compounding periods are factored in, often higher than the nominal rate.
Compounding Interval
The frequency at which interest is applied to the principal sum of a loan or deposit, affecting the total interest earned or paid.
Compounded Nominal Rate
The rate of interest quoted for a period, usually a year, without taking into account the effect of compounding within that period.
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