SUMMATIVE REPORT

Inflation is the rate of price growth, especially for the necessities sometimes
stated in percentage terms. Inflation also affects the level of interest rates significantly. I
see inflation as beneficial to others at others' cost. It actually pushes individuals to
spend, but also reduces the purchasing power. But during the debate I am made clear
that it is indeed a positive thing, particularly for economic development.

Financial derivatives were also discussed, these are financial products that are
connected to a certain financial instrument or indicator or commodity through which the
financial markets themselves can exchange specific financial risks. Financial derivatives
transactions should be considered as distinct transactions, rather than as an inherent
component of the value that they relate to underlying transactions. The price of an asset
or index of a financial derivative arises from the price of an underlying item. No main
amount is advanced, as opposed to debt instruments, to be returned and there is no
investment income. Three motives for investing in the foreign portfolio were also
highlighted. The first thing that honestly does not astonish me is diversity. As we are all
aware, diversifying our investment is an essential strategy for us to preserve it. The
same goes for overseas investments. It enables us to control the risk that will assist us
progressively to minimize the danger of fast price changes. It is also a fantastic
approach, from my point of view, to protect the money, as we all know, for those who
retire to take it into account as one of the main factors.

REACTION PAPER

Now that we spoke about inflation, it helps me know how important it is for an
investor to keep an eye on it and monitor it. In this session I realized that inflation is
important, not only as an investor, but how it may have a major impact on the economy
of one country. This lesson also offers me a different view of the global investing
portfolio. The apparent advantages might be so appealing, but we can become
overwhelmed by the inadequate foundation in the way the markets function. However, if
we truly want to make efforts to invest overseas, we must optimize methods to decrease
the dangers.

Inflation as we are now witnessing in the Philippines, commodity prices are

growing quickly and people fight to discover fake alternatives for goods, particularly the
poor who cannot buy human needs. As I've learnt, inflation is usually used to indicate a
continuous or steady price increase. I don't really care since I've been a child about the
value of a product since it's going to be taken by my father and mother, but when I was
also one mine, I don't know what it really is if your salary is just enough for your needs
and when costs are rising. Especially if you just have a proper income, it truly is a
challenge to calculate your budget. In a poor country like the Philippines, unwanted
inflation is a genuine concern, even when policies and programs are developed to
enhance the living conditions of the population. In many cases though, inflation isn't a
negative sign of economic growth, like pull-inflation demand, when the economy grows
and develops quickly. When demand prices rise, they tend to expand and commodities
production likewise rises