Nominal income is the amount of an employee's salary that is paid in cash, whereas real income is the amount the employee receives after accounting for inflation. This means that the nominal income is always the highest of the two figures. Even when an individual has access to more money, her purchasing ability may be low because of inflated prices.Know More
Knowing the difference between nominal income and real income is essential in lending and bond holding. In these situations, borrowers need to charge enough interest to balance out the amount of inflation when the loan fully matures. Without differentiating between real income and nominal income, the borrower actually loses money.
The Federal Reserve is in charge of keeping inflation at a useful and sustainable level. If inflation gets out of control, specific monetary policies are implemented to create balance. Such policies include limiting the amount of money and the amount of credit that is available in the market at any given time. The main goal is to lower the system's level of liquidity. The result of these policies is that they can make credit more expensive to obtain, which can impede economic development and lower prices.
Knowing the difference between real income and nominal income is also important when investing since the end goal is to have both income and purchasing power.Learn more about Personal Banking
It is possible to use a Green Dot temporary card to get cash back from retailers providing this service. Cash back is a service by which a customer paying with a debit card asks to be charged more than the cost of the purchase and receives the difference in cash.Full Answer >
Apply the remaining balance on a prepaid card to a new purchase, and then inform the merchant of the desire to pay the rest using a second form of payment, such as credit card, cash or check. Most of the major banks, such as Bank of America, which issues Visa-branded debit cards, enable prepaid cardholders to use this solution.Full Answer >
Ways to send money from the Unites States to Canada include bank wire transfers, independent fund transfer services and prepaid debit cards that the recipient can use for cash withdrawals. The United States Postal Service offers international money orders that can be mailed.Full Answer >
According to U.S. News, some of the fastest ways to make cash include donating plasma, recycling, babysitting and holding a yard or garage sale. Factors that can influence the amount an individual is paid depend on the area where he lives, his weight and the items being recycled or sold.Full Answer >