Purchasing-power meaning

pûrchĭ-sĭng
The ability to purchase, generally measured by income.
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The value of a particular monetary unit in terms of the goods or services that can be purchased with it.
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The amount of goods or services that a defined amount of money can buy. Purchasing power can be used as a proxy for measuring inflation. As inflation rises, purchasing power erodes.
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How much money someone can invest in a stock or financial market by using the maximum margin (amount of money that can be loaned) that the brokerage firm makes available.
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(economics) The amount of goods and services that can be bought with a unit of currency or by consumers.

High interest rates are affecting the purchasing power of homeowners.

The exchange rates do not always reflect true differences in the purchasing power of currencies.

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(business) The ability of a large collective or company to negotiate more favourable prices and terms than a smaller group or company.

Large supermarkets usually have better purchasing power than small, local shops.

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