Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: money, business, payroll, tax advisor, investment, finance, stock trading, financial,
Definition of Nominal
In name only. Differences in compounding cause the nominal rate to differ from the effective
Measured in money terms, in current rather than real dollars. Contrast with real.
A monthly fixed-dollar payment beginning at retirement age. It is nominal
The price of one currency in terms of another, in this book defined as number of units of foreign currency per dollar.
Payment for the use of borrowed funds, measured as a percentage per year of these funds.
An effective rate per period multiplied by the number of periods in a year.
A cash flow expressed in nominal terms if the actual dollars to be received or paid out are given.
The actual foreign exchange quotation in contrast to the real exchange rate that has
The interest rate unadjusted for inflation.
The rate of interest quoted, or stated, to be paid on a security
Rate at which money invested grows.
The contracted, or stated, interest rate, undeflated for price level changes.
Price quotations on futures for a period in which no actual trading took place.
The nominal interest rate that the issuer promises to pay the
A price index used to deflate a nominal value to a real value by dividing the nominal value by the price deflator.
The nominal exchange rate corrected for price level differences.
The nominal value of a security. Also called the par value.
The nominal value which appears on the face of a document recording an entitlement, generally an amount of money that has to be repaid on the maturity of a debt instrument.
A theory that nominal interest rates in two or more countries should be equal to the required real
Price index used to deflate nominal GDP to real GDP by dividing nominal GDP by the GDP deflator.
Guaranteed insurance contract
A contract promising a stated nominal interest rate over some specific time
Interest Rate, Real
nominal interest rate less expected inflation.
international Fisher effect
Theory that real interest rates in all countries should be equal, with differences in nominal rates reflecting differences in expected inflation.
Money Rate of Interest
See interest rate, nominal.
nominal value of a security. Same as face value.
Quantity Theory of Money
Theory that velocity is constant, and so a change in money supply will change nominal income by the same percentage. Formalized by the equation Mv = PQ.
Measured in base year, or constant, dollars. Contrast with nominal.
GDP expressed in base-year dollars, calculated by dividing nominal GDP by a price index.
Income expressed in base-year dollars, calculated by dividing nominal income by a price index.
Real interest rate
The rate of interest excluding the effect of inflation; that is, the rate that is earned in terms
The number of times during a year that the money supply turns over in supporting that year's economic activity, measured as the ratio of nominal income to the money supply.
a. Measure of return on an investment, stated as a percentage of price.
Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.