What Is 'Deflation' and What Effect Does Deflation Have on Borrowers

question 16

Essay

What is 'deflation' and what effect does deflation have on borrowers of money and on asset values?
_____________________________________________________________________________________________
_____________________________________________________________________________________________

---

Definitions:

Registration Statement

A document submitted to a regulatory body, like the SEC, that contains financial and other significant details about a company planning to issue securities to the public.

Advertising Tool

A method or device used to promote products or services to target audiences effectively.

Governments Exempt

A status that exempts government entities from certain laws, taxes, or requirements that apply to private parties.

Due Diligence Defense

A defense in which the defendant argues that he or she applied the appropriate degree of attention, care, and research expected of a party in a given situation and had reasonable grounds to believe that certain facts and statements were accurate and had no omission of material facts.