ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In finance, a long position in a financial instrument means the holder of the position owns a positive amount of the instrument. The holder of the position has the expectation that the financial instrument will increase in value. This is known as a bullish position.

Detailed explanation-2: -What Is a Cash Position? A cash position represents the amount of cash that a company, investment fund, or bank has on its books at a specific point in time. The cash position is a sign of financial strength and liquidity.

Detailed explanation-3: -Having a “long” position in a security means that you own the security. Investors maintain “long” security positions in the expectation that the stock will rise in value in the future. The opposite of a “long” position is a “short” position. A “short” position is generally the sale of a stock you do not own.

Detailed explanation-4: -Inflation Creates Permanent Loss Holding too much cash long-term can come at a high price. Inflation is defined by the Federal Reserve as “the increase in the prices of goods and services over time.”[1] For investors, inflation is a silent killer that, if unchecked, can permanently deteriorate their purchasing power.