Meaning REAL INTEREST RATE: The rate of interest excluding the effect of expected inflation; that is, the rate that is earned in terms of constant-purchasing-power dollars. Interest rate expressed in terms of real goods, i.e. nominal interest rate adjusted for expected inflation
More terms such as Real interest rate in Dictionary R.
- Definition Regulation Q:
- Examples Federal Reserve Board regulation imposing caps on the rates that banks may pay on savings and time deposits. Currently time deposits with a denomination of $100,000 or more are exempt from Reg Q real interest rate definition.
- Definition Risk-Prone:
- Examples Willing to pay money to assume risk from others real interest rate explain.
- Definition Return On Assets (ROA):
- Examples profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales real interest rate what is.
- Definition Ratio Writer:
- Examples An option writer who does not own the number of shares required to cover the call options he or she writes real interest rate meaning.
- Definition Reference Rate:
- Examples A benchmark interest rate (such as LIBOR) used to specify conditions of an interest rate swap or an interest rate agreement real interest rate abbreviation.
