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6 Cards in this Set
- Front
- Back
Nominal Interest Rate |
The interest rate actually observed in Financial Market |
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Loanable Funds Theory |
A theory of interest rate determination that views equilibrium interest rates in financial markets as a result of the supply of and demand of loanable funds |
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Annuity |
A series of equal each flows received at fixed intervals over the investment horizon |
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Lump Sum Payment |
A single cash flow occurs at the beginning and end of the investment horizon with no other cash flows exchanged |
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Inflation |
The continual increase in the price level of a basket of goods and service |
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Default Risk |
The Risk that a security issuer will default on the security by being late on or missing an interest or principal payment |