Value
in sentence
5399 examples of Value in a sentence
With nonfinancial corporations’ debt currently standing at 150% of GDP, the book
value
of the bad loans could be a quarter of national income.
But if the asset managers pay full book
value
for those loans, they will incur losses, and the government will have to foot the bill.
If they pay only market value, it will be the banks that incur losses, and the government will have to repair their balance sheets.
They mimic bank accounts by allowing investors to write checks and promise that their investment’s
value
will not fall.
These six international banks alone accounted for nearly 20% of the prime money-market funds’
value.
Many readers know how money-market funds work: An investor buys a $1.00 share from the XYZ fund, which keeps each share’s
value
at a constant $1.00, allowing the investor to believe that the money – invested in a pool of safe, secure, but not always government-guaranteed assets – is on deposit.
Even if the asset pool declines in value, the fund’s managers keep the
value
of each share at $1.00 by rounding upward the fund’s real
value.
If the fund’s losses are big enough that rounding off still leaves it short of a stable $1.00 value, the fund “breaks the buck.”
The Reserve Fund, a well-established money-market fund with too many unpaid IOUs from Lehman, could not keep its
value
steady.
The Federal Reserve, seeking to stem the growing panic and stabilize the American and international banking system, promptly guaranteed the
value
of all money-market funds.
The proposals that the SEC rejected were aimed at making money-market funds more robust by requiring that each fund maintain capital reserves or let its
value
“float” – and not be rounded up – to reflect its true, underlying risk.
Their steady
value
makes them appear safer to investors than they are to the world’s financial system.
Its lobbyists told the SEC commissioners that current rules already did everything possible to ensure safety; that retail investors want money-market funds’ steady value; that change would hurt all investors; and that the recent Dodd-Frank financial-reform legislation disrupts regulators’ ability to bail out money-market funds next time.
Deflation would weaken aggregate demand by raising the real (inflation-adjusted)
value
of household and corporate debt, and by increasing real interest rates.
So the operative question is how to reduce the euro’s relative
value
while maintaining the perception of stability that Draghi helped to establish in 2012.
Because quantitative easing by the ECB has been advocated as a way to weaken the euro, it is worthwhile to examine the impact of its use by the Federal Reserve on the
value
of the dollar and the inflation rate in the United States.
The real trade-weighted
value
of the dollar is now at the same level that it was in 2007, before the onset of the Great Recession.
The dollar’s
value
then remained relatively stable during more than three years of quantitative easing – and actually rose during 2013, when the Fed’s asset purchases reached a high of more than $1 trillion.
Of course, other factors influenced the dollar’s
value
during this period as well.
If the ECB wants to reduce the
value
of the euro and increase the eurozone’s near-term inflation rate, the only reliable way to do so may be by direct intervention in the currency market – that is, selling euros and buying a basket of other currencies.
As Chinese manufacturing moved up the
value
chain, firms increasingly replaced workers with machines embodying the latest technologies.
In light of these new realities, the sell-off of emerging-market assets this year actually means that
value
and risks are better aligned.
Enron used fancy accounting tricks and complicated financial products (derivatives) to mislead investors about its
value.
Moreover, most small-business loans are collateral-based, but the
value
of the most common form of collateral, real estate, has plummeted.
Emerging markets know this, and are upset – Brazil has vehemently expressed its concerns – not only about the increased
value
of their currency, but that the influx of money risks fueling asset bubbles or triggering inflation.
The normal response of emerging-market central banks to bubbles or inflation would be to raise interest rates – thereby increasing their currencies’
value
still more.
The Fed has bought more than $1 trillion of mortgages, the
value
of which will fall when the economy recovers – which is precisely why no one in the private sector wants to buy them.
Second, gold performs best when there is a risk of high inflation, as its popularity as a store of
value
increases.
A currency serves three functions, providing a means of payment, a unit of account, and a store of
value.
Gold may be a store of
value
for wealth, but it is not a means of payment; you cannot pay for your groceries with it.
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