@investitute

class="content__text" Purchasing power parity (PPP) is an economic term that calculates the relative value of different currencies. When calculating GDP per capita, purchasing power parity gives a more accurate picture about a country's overall standard of living. It gives a meaningful comparison of prices across countries, a wide range of goods and services must be considered. PPP cannot be used to compare everything as the standard of living in each country is different. Exchange rate is different than PPP rate. Exchange rate changes on daily basis and is affected by demand and supply, whereas, PPP rate does not change easily and is based on weighted cost of lot of goods and commodities. #forex #usd #investing #exchangerate #investment #finance #moneymanagement #savemoney #investingforbeginners #finance #money

June 09, 2022