Examlex
Explain the difference between short-term and long-term investments. Cite examples of each.
Nominal Interest Rate
The rate of interest before adjustments for inflation, as quoted by banks and financial institutions.
Real Interest Rate
An interest rate fine-tuned for inflation effects, illustrating the actual charge of borrowing or the factual yield from savings deposits.
Inflation Rate
The rate of climb in the general price structure for goods and services, slashing the potency of purchasing.
CPI
Stands for Consumer Price Index, which measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
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