₹1 Crore Salary in US or ₹30 Lakh in India?

PPP stands for Purchasing Power Parity, a theory used in economics to compare the relative value of different countries' currencies.

Purchasing Power Parity (PPP) is a way to compare the prices of things in different countries.

Imagine you want to buy the same item, like a burger, in two countries. In one country, the burger costs $5, and in another, it costs 500 units of their local money.

If the exchange rate between the two countries is such that 1 dollar equals 100 units of the other country’s money, then according to PPP, the price is the same because $5 is equal to 500 units.

PPP helps us understand how much money is worth in different places.

If things are more expensive in one country, your money doesn’t go as far there.

If things are cheaper, your money has more power.

Economists use PPP to figure out how much people in different countries can really buy with their money.

It helps compare the living standards between countries and find out which economies are stronger.

For example, if you earn $1,000 in one country and can buy more stuff than someone earning the same amount in another country, PPP tells you that your purchasing power is greater.

It’s a fairer way to compare economies than just looking at exchange rates.

Share this with your family & friends.

Follow us for more @_financefit_

[Finance Fit, Personal Finance, Investing, Money Mindfulness, Money Management, Share Market Investing, Investing For Beginners]

#stockmarket #sharemarket #sharemarketindia #nifty #sip #ppp #smartinvesting #investingforbeginners #investing #investing101 #investment #financefit

Видео ₹1 Crore Salary in US or ₹30 Lakh in India? канала Finance Fit