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Explain the process of categorical thinking.
Fiscal Quarters
Divisions of a financial year into four parts, used for accounting purposes and financial reporting by companies.
Nominal Interest Rate
The interest rate before adjustments for inflation, representing the rate that banks and other lenders quote.
Effective Interest Rate
The actual interest rate when compounding is accounted for, expressed as an annual rate.
Lender
An individual, a financial institution, or an entity that provides funds to another with the expectation that the funds will be repaid, usually with interest.
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