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Foreign exchange market and Purchasing power parity

Shortcuts: Differences, Similarities, Jaccard Similarity Coefficient, References.

Difference between Foreign exchange market and Purchasing power parity

Foreign exchange market vs. Purchasing power parity

The foreign exchange market (Forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies. Purchasing power parity (PPP) is a neoclassical economic theory that states that the exchange rate between two countries is equal to the ratio of the currencies' respective purchasing power.

Similarities between Foreign exchange market and Purchasing power parity

Foreign exchange market and Purchasing power parity have 15 things in common (in Unionpedia): Central bank, Euro, Exchange rate, Gross domestic product, Hedge (finance), India, Inflation, Interest rate, Perfect competition, Purchasing power, Relative purchasing power parity, Speculation, Switzerland, United States, United States dollar.

Central bank

A central bank, reserve bank, or monetary authority is an institution that manages a state's currency, money supply, and interest rates.

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Euro

The euro (sign: €; code: EUR) is the official currency of the European Union.

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Exchange rate

In finance, an exchange rate is the rate at which one currency will be exchanged for another.

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Gross domestic product

Gross domestic product (GDP) is a monetary measure of the market value of all final goods and services produced in a period (quarterly or yearly) of time.

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Hedge (finance)

A hedge is an investment position intended to offset potential losses or gains that may be incurred by a companion investment.

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India

India (IAST), also called the Republic of India (IAST), is a country in South Asia.

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Inflation

In economics, inflation is a sustained increase in price level of goods and services in an economy over a period of time.

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Interest rate

An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited or borrowed (called the principal sum).

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Perfect competition

In economics, specifically general equilibrium theory, a perfect market is defined by several idealizing conditions, collectively called perfect competition.

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Purchasing power

Purchasing power (sometimes retroactively called adjusted for inflation) is the number and quality or value of goods and services that can be purchased with a unit of currency.

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Relative purchasing power parity

Relative purchasing power parity is an economic theory which predicts a relationship between the inflation rates of two countries over a specified period and the movement in the exchange rate between their two currencies over the same period.

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Speculation

Speculation is the purchase of an asset (a commodity, goods, or real estate) with the hope that it will become more valuable at a future date.

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Switzerland

Switzerland, officially the Swiss Confederation, is a sovereign state in Europe.

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United States

The United States of America (USA), commonly known as the United States (U.S.) or America, is a federal republic composed of 50 states, a federal district, five major self-governing territories, and various possessions.

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United States dollar

The United States dollar (sign: $; code: USD; also abbreviated US$ and referred to as the dollar, U.S. dollar, or American dollar) is the official currency of the United States and its insular territories per the United States Constitution since 1792.

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The list above answers the following questions

Foreign exchange market and Purchasing power parity Comparison

Foreign exchange market has 219 relations, while Purchasing power parity has 72. As they have in common 15, the Jaccard index is 5.15% = 15 / (219 + 72).

References

This article shows the relationship between Foreign exchange market and Purchasing power parity. To access each article from which the information was extracted, please visit:

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