Discover how risk premiums offer higher returns for taking on investment risks, and learn how they are calculated and applied in real-world investing scenarios.| Investopedia
Purchasing power is the value of a currency in terms of the goods or services one unit of it can buy. Discover how purchasing power impacts investors.| Investopedia
Inflation is a decrease in the purchasing power of money, reflected in a general increase in the prices of goods and services in an economy.| Investopedia
An interest rate is the percentage of interest relative to the principal. It is either what lenders charge borrowers or what is earned from deposit accounts.| Investopedia