Ostroff, Fair and Company
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Cash is a nominal account.?


True or False?

Since a nominal variable is one where the effects of inflation have not been accounted for, cash is a nominal account. The real interest rate of the cash account would be zero minum the inflation rate. At this time, that would be about minus 4%.
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your question doesn't make sense. Check the definition of "nominal"
A nominal return is the actual dollar return of an investment. This is opposed to a "real return", which is the nominal return minus inflation. A real return has the effects of inflation factored in, whereas a nominal return does not.
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