"Nominal" refers to a value or measurement that is stated in name only, without considering any adjustments for factors like inflation or real value. For example, if a product costs $100 today, that is its nominal price, regardless of how much purchasing power that amount has over time. In finance, nominal interest rates are the rates before adjusting for inflation. If a bank offers a nominal interest rate of 5%, it does not account for the decrease in purchasing power due to inflation. Understanding nominal values is essential for making informed financial decisions.