What is the difference between real money & nominal money?

What is the difference between real money & nominal money?

Ritu Singh Trainee Asked on October 31, 2014 in Money Managers.
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1 Answer(s)

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.
Examples:
Nominal: That CD costs $18. Japan’s science and technology spending is about 3 trillion yen per year.
Real: A year of college costs about the value of a Toyota Camry. Those tickets to see Van Halen cost me three weeks’ worth of food!

pooja Trainee Answered on November 15, 2014.
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