Home » Finance Faqs » What is the difference between real money & nominal money?
What is the difference between real money & nominal money?
HTML clipboard
1)nominal money is related to the measure of counting. nominal figure is what is written on the bill. where as real money relates to it's purchasing power. for eg: if 10 units in nominal money can buy 2 chocolates in 1980 and 1 chocolate in 2000, in the same way, 10 units of nominal money is 10units of real money in 1980 and 5 units of real money in 2000.
HTML clipboard
2)The nominal money has no purcahsing power, where as the real money has purchasing power.
