Exams

Inflation risk, also called purchasing power risk, is the chance that the cash flows from an investment won't be worth as much in the future because of changes in purchasing power due to inflation.

HOW IT WORKS (EXAMPLE):

For example, $1,000,000 in bonds with a 10% coupon might generate enough interest payments for a retiree to live on, but with an annual 3% inflation rate, every $1,000 produced by the portfolio will only be worth $970 next year and about $940 the year after that. The rising inflation means that the interest payments have less and less purchasing power. And the principal, when it is repaid after several years, will buy substantially less than it did when the investor first purchased the bonds.

The glycemic index or glycaemic index is a number associated with the carbohydrates in a particular type of food that indicates the effect of these carbohydrates on a person's blood glucose (also called blood sugar) level. A value of 100 represents the standard, an equivalent amount of pure glucose.

The GI represents the rise in a person's blood sugar level two hours after consumption of the food.

Several Budget proposals, including the reintroduction of the tax on long-term capital gains (LTCG) exceeding 1 lakh from the sale of shares, will kick in from 01st April 2018, the beginning of the 2018-19 financial year. 

A Union territory is a type of administrative division in India. Unlike the other states which have their own state governments, union territories are ruled by the central government. There are 7 union territories in India. They are ::

• National Capital Territory of Delhi – Delhi.

• Chandigarh – Chandigarh.

• Daman and Diu – Daman.

• Dadra and Nagar Haveli – Silvassa.

• Pondicherry – Puducherry.

• Andaman and Nicobar Islands – Port Blair.

• Lakshadweep – Kavaratti.