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Nominal interest rate

The nominal interest rate is the actual rate that is agreed between a bank and the customer, that is, it is the rate borrowers pay on their loans or the return savers receive on their cash deposits.

Where this appears

The syllabus topics that use this term.

  • 3.5Effectiveness of Monetary Policy
  • 3.5Real vs Nominal Interest Rates

Taught in Demand Management (Monetary Policy)

All 809 terms
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