Term of the Day: Purchasing Power

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	INVESTOPEDIA Term Of The Day October 10, 2015 Purchasing Power Purchasing power is the value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you would be able to purchase. In investment terms, purchasing power is the dollar amount of credit available to a customer to buy additional securities against the existing marginable securities in the brokerage account. Breaking It Down: To measure purchasing power, you would compare against a price index such as the... Read More Related to "Purchasing Power" What You Should Know About Inflation Inflation is defined as a sustained increase in the general level of prices for goods and services. It is measured as an annual percentage... Read More The President's Council Of Economic Advisers The economy is always among the top concerns of Americans. The national economy is complex and sometimes... Read More Velocity of Money The velocity of money measures the rate at which money goes from one transaction to another in an economy... Read More Recently Added Definitions Middle Market America's middle market firms have revenues in the $10 million to $1 billion range. There are about 200,000 such firms... Read More Asset Turnover Ratio The ratio of the value of a company's sales or revenues generated relative to the value of its assets. The Asset Turnover ratio can often be... Read More Related Definitions New York Dollar Personal Income Constant Dollar Burgernomics Minimum Margin Past Terms of the Day Real Estate Investment Trust - REIT Section 1231 Property Term Deposit Zero-Sum Game Capitalization Rate You are currently subscribed as: mondemand.forex@blogger.com Unsubscribe | Unsubscribe From All | Manage Profile Investopedia US, A Division of IAC. Copyright © 2015, Investopedia, LLC. All Rights Reserved Follow Us: