What is PPC Full Form in Banking?
PPC Full Form in Banking is Purchasing Power Parity Credit. Purchasing Power Parity is an economic concept that holds that the difference between the price level of a basket of products in one nation and the price level of an identical basket of goods in another country is caused by the two countries’ equilibrium foreign exchange rate.
How is PPC used in macroeconomics?
Purchasing power parity credit is a prominent macroeconomic study tool that compares economic productivity and living standards across countries. PPP is an economic theory that compares different countries’ currencies using a basket of goods approach. That is, PPP is the exchange rate at which one country’s currency may be translated into another to buy the same quantity of a wide range of goods. According to this concept, two currencies are in equilibrium, their currencies are equal when a basket of commodities is priced the same in both nations, accounting for exchange rates.
Major users of PPC:
Multinational corporations that operate in many countries may use PPP-adjusted credit facilities to compensate for changes in currency value and purchasing power between countries. This enables them to make equitable financial judgments when investing, borrowing, or lending across borders.
