Nominal
In name only. Differences in compounding cause the nominal rate to differ from the effective interest rate. inflation causes the purchasing power of money to differ from one time to another. |
Similar financial terms
Nominal pricePrice quotations on futures for a period in which no actual trading took place.
Nominal interest rate
The interest rate unadjusted for inflation.
Nominal exchange rate
The actual foreign exchange quotation in contrast to the real exchange rate that has been adjusted for changes in purchasing power.
Nominal cash flow
A cash flow expressed in nominal terms if the actual dollars to be received or paid out are given.
Nominal annual rate
An effective rate per period multiplied by the number of periods in a year.
Nominal rate of interest
The annual return form lending money expressed as a percentage, without having taken account of the rate of inflation.
