Inflation premium
Describe the term Inflation premium and how it is the prospect of future inflation?
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Inflation premium: It is the prospect of future inflation, very strongly affects the shape of the term structure. Investors thinking regarding loaning money for different lengths of time recognize that future inflation erodes the value of dollars which will be returned. As an outcome, investors demand compensation for such loss in the form of maximum nominal rates. This extra compensation is termed as inflation premium.
This brickyard is incurring total fixed costs which average about: (1) $200 daily. (2) $300 daily. (3) $400 daily. (4) $500 daily (5) $600 daily. Q : Explain Subsidiary function Elucidate Elucidate the Secondary or Subsidiary function? Answer: 1) Standard of deferred payments: Money is executing as deferred Payment
Elucidate the Secondary or Subsidiary function? Answer: 1) Standard of deferred payments: Money is executing as deferred Payment
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