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In Business / College | 2025-07-06

What is a nominal interest rate?
The rate of interest quoted to a consumer, but that doesn't actually affect the loan terms
The rate of interest that is set on a savings asset or debt liability
The rate of interest with the inflation rate subtracted out
The rate of interest representing actual economic growth in a region or country

Asked by alannaussery2017

Answer (2)

The nominal interest rate is the stated interest rate on loans or savings, not adjusted for inflation. It represents the cost of borrowing or the return on savings in simple terms. Understanding this rate helps consumers gauge the impacts of inflation on their finances. ;

Answered by GinnyAnswer | 2025-07-06

The nominal interest rate is the stated interest rate on loans or savings that is not adjusted for inflation. It indicates the cost of borrowing or the return on savings in simple terms. Understanding this rate is important for evaluating the effects of inflation on purchasing power.
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Answered by Anonymous | 2025-07-07

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