Definition of Purchasing power:
Economics: (1) Money and credit available for spending and consumption of goods and services. Demand and prices cannot rise beyond the available purchasing power. Also called buying power. (2) Exchange rates: Value of money (currency) measured by the quantity and quality of goods and services it can buy.
In investment terms, purchasing power is the dollar amount of credit available to a customer to buy additional securities against the existing marginable securities in the brokerage account. Purchasing power may also be known as a currency's buying power.
General: Extent to which a person, firm, or group has available funds to make purchases.
Purchasing power is the value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you would be able to purchase.
How to use Purchasing power in a sentence?
- You should always try and keep enough liquidity on hand for purchasing power to be able to make a purchase if a great deal comes about.
- Inflation tends to erode the purchasing power of a currency over time.
- I wanted to go shopping with him because he had a lot of purchasing power and I knew he would be able to buy me really expensive stuff.
- Purchasing power is the amount of goods or services that a unit of currency can buy at a given point in time.
- Central banks try to keep prices stable through maintaining the purchasing power of the currency by setting interest rates and other mechanisms.
- You should always try and have enough purchasing power on hand to be able to strike when a good deal presents.
Meaning of Purchasing power & Purchasing power Definition