Posts tagged ‘Interest Rate’

September 26, 2011

Money and Inflation

Money is a commodity that is in huge demand and needed by everyone in the society but in limited supply. Money is what that is needed to satisfy all needs this is able to buy what you want or wish for. This should be supplied consistently and in enough amount then only we can meet our needs timely and fully. But over the period of time the demand for money increases to satisfy those same needs. It may seem to be strange but this true. And more shocking truth is that everyone wants same to happen and governments support this.

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September 24, 2011

Various Types of Risks and Measurement

Market risk is the risk of adverse deviation of the mark–to–market value of the trading portfolio, due to market movements, during the period required to liquidate the transactions. In simple words the market risk can be defined as the risk that is associated with the investment in form of realized returns being different to the expected return. The period of liquidation is critical to assess such adverse deviations. If it is longer, so do the deviations from the current market value.

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