GENERAL KNOWLEDGE

GK

BUSINESS MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Purchasing Power
A
also called buying power; the value of money measured by the quality and quantity of products and services the money can by
B
a risk related to the influence of a defect in the documentation on cash flow or dept service
C
a risk of politically motivated interference of a foreign government
D
occurs when a country depends too greatly on imports from one single country or when a country depends too greatly on exporting a very large number of exports to one single country
E
a risk associated with the sale and accompanying transactions between two foreign markets
Explanation: 

Detailed explanation-1: -Purchasing power is also known as a currency’s buying power.

Detailed explanation-2: -Purchasing power means how much your money can buy-its “buying power.” Purchasing power affects stock prices, as well as general economic health. Rising inflation will erode the purchasing power of your investments, aka the amount of money you invest will be worth less when you need to use it.

Detailed explanation-3: -Purchasing power measures how much a unit of currency can buy. It’s often impacted by inflation and deflation-the changing cost of goods and services.

Detailed explanation-4: -What is Purchasing Power? Purchasing power is a currency’s value expressed in terms of the number of goods or services that can be bought by one unit of capital. Purchasing power is significant; while everything else is equal, inflation reduces the number of goods or services you might purchase.

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