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When used in the world of finance or in economics,
an Index is an indicator of the current economic
conditions. It is used as a way of measuring the
changes taking place within financial markets or
in the economy. These types of changes typically
are expressed as a percentage change from the
previous month or since the past year. These
changes can be in activity or performance. The
stock market
index and the consumer price index are two
common indices. These and other indices are
closely monitored by financial experts and are
used to help determine whether
interest rates should be changed. |
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