Investment Fundamentals

Purchasing Power

Definition

What is Purchasing Power?

The quantity of goods and services that a sum of money can buy.

Example in practice

If prices rise faster than savings, the savings lose purchasing power.

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The original amount of money invested or lent, excluding later returns.

Money or other resources committed to produce income, growth, or another economic benefit.

An asset or commitment of money made with the expectation of future income, growth, or both.

Anything with economic value that can be owned or controlled.

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