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Weighted Aggregates Index
In a weighted aggregates index, weights are assigned according to their significance and consequently the weighted index improves the accuracy of the general price level estimate based on the calculated index. Generally, the level of consumption is taken as a measure of its importance in computing a weighted aggregates index. There are various methods of assigning weights to an index. The more important ones are:
Laspeyres Method
Paasche Method
Fixed Weight Aggregates Method
Fisher's Ideal Price Method
Marshall-Edgeworth Method.
Why would it be useful to examine a country’s balance of payments data? Answer: It would be helpful to observe a country’s BOP for at least two reasons. First, BOP offers detail
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exercise
Q. Explain about Invoice discounting? Invoice discounting is a technique which is able to be used to raise finance against receivables. Invoice discounting works as follows:
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The payment that the issuer makes to the bondholder can be in any currency. The contract at the time of bond issue between the issuer and the investor can specify
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