May 01 2012

Nominal interest rate

Published by at 7:34 pm under

The price of money. If an individual wishes to borrow money, this determines the percentage they must pay back to the lender in addition to the amount borrowed. Also, it represents the return earned (as a percentage) by a saver for keeping his or her money in the bank. Does not reflect the effect of inflation on borrowers and savers (see real interest rate).

About the author:  Jason Welker teaches International Baccalaureate and Advanced Placement Economics at Zurich International School in Switzerland. In addition to publishing various online resources for economics students and teachers, Jason developed the online version of the Economics course for the IB and is has authored two Economics textbooks: Pearson Baccalaureate’s Economics for the IB Diploma and REA’s AP Macroeconomics Crash Course. Jason is a native of the Pacific Northwest of the United States, and is a passionate adventurer, who considers himself a skier / mountain biker who teaches Economics in his free time. He and his wife keep a ski chalet in the mountains of Northern Idaho, which now that they live in the Swiss Alps gets far too little use. Read more posts by this author

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