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Disinflation as compared to inflation would normally be good for investments in?
Wiki User
∙ 9y ago
Disinflation as compared to inflation would normally be good for investments in bonds or gold.
Wiki User
∙ 9y ago
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What is the concentration of oxygen in the lungs normally compared to carbon dioxide?
what is the concentration of oxygemnin the lungs normally compared to carbon dioxide
Is investment considered as current asset?
No investments in other business are normally for long term basis. If investments are for long term then long term assets otherwise current assets.
Is inflation good for economic growth or not?
On my view, inflation is not good simply because normally it halt GDP, as a result the economy will not grow as there is a decline in GDP..In addition there will be no development taking place......BY: Hamunyela Oiva ,,a student UNAM, Windhoek..
What does pwm normally stand for?
PWM normally stands for private wealth management. Private wealth management is just a fancy work for brokerage house. It is an economic term used in dealing with financial planning or investments.
The concentration of carbon dioxide in the lungs normally compared to oxygen is about?
30 to 70
Inflation Protection for Bondholders ?
Normally when investors are placing their money in equity investments there is some level of built-in inflation protection. As the cost of producing their merchandise or services goes up, so do the prices that the firms charge. In other words, the increase in the cost of doing business is passed along to the consumers; and therefore the company (or the shareholder thereof) doesn’t suffer. Historically, there was no such protection for investors in fixed-income assets such as bonds. In fact, inflation risk is one of the larger risks assumed by bondholders. Today there is some hope for investors who want to put their money in bonds but also would like the same protection afforded their equity-investing counterparts. This hope comes in the form of Treasury Inflation Protected Securities, also known as TIPS. TIPS are bonds issued by the U.S. Treasury that have an inflationary protection component built into them. One of the first things that readers should note about them is that since they are backed by the full faith and credit of the U.S. Government they are generally considered to be among some of the safest investments available. The interest earned on TIPS doesn’t fluctuate. If you buy a bond with a 2% coupon, it won’t rise with inflation. What does rise with inflation is the par value of the bond. It should be noted that when we talk about inflation in this case we’re talking about inflation as measured by the Consumer Pricing Index, or CPI. What this means is that when the CPI rises, the par value of your bonds goes up. When the bond matures or you sell it in the secondary market, you receive more for it than you otherwise would have. By offering you inflation protection for fixed-income assets, the U.S. Treasury has secured a bit of a niche market among fixed-income investors concerned about the erosion of their purchasing power.
Why are women sometimes compared to flowers?
Flowers and women are sometimes compared to one another mainly because of the sweetness, beauty and delicate nature that both normally possess.
Why would it be difficult to recycle polyvinyl chloride into plastic bags?
It is a harder plastic compared to what is normally used.
Why was it so difficult to find an effective solution to inflation problems between 1964 and 1983?
It is due to the nature of economic policy. Normally inflation and unemployment are inversely related, so policy decisions can be made to cure one at the expense of the other (for instance, raising of interest rates lowers inflation but risks stifling business growth). During the period between 1964 and 1983, we experienced "stagflation" (high unemployment AND high inflation). So when we experience both at the same time, policy makers have their hands tied as to what to do. If they decide to try to get inflation lower, they risk making unemployment worse (and it's already bad) and if they try to get employment lower, they risk making inflation worse.
What is the relationship between inflation and interest rates?
Interest and inflation are related in one, main way, and that is through the fluctuation of available money. If the Fed decides that they are going to produce more paper money, then the average person will have more purchasing power, thus spend more on things they wouldn't normally. Because of the increase in money, in order to keep up businesses raise prices, thus causing inflation. Interest comes in to play because when inflation occurs, lenders want more money to be able to keep up with inflation. Because of this, they raise their interest prices to gain more money on their return. ***when the inflation rate rises, so does the items, including money barrowed by individuals or companies.
Why inflation may restrict the usefulness of the balance sheet as normally presented Examples?
Most of the values are based on historical or original price. The balance sheet does not account for inflation, therefore the numbers will be incorrect when it comes to the actual price of inventory.
Is wealth maximization long term or short term?
Buying stocks is normally a long-term investment strategy. The idea is that since there is always inflation, the value of your stocks should go up with time.
