monetary gain(redirected from Monetary Gains)
An increase in value that occurs through inflation. Suppose one's monetary liabilities exceed one's monetary assets; that is, the debt one owes exceeds the money one has in the bank. When inflation occurs, the value of the debt is reduced, which, if the debt exceeds assets, effectively increases one's net worth. This increase in net worth is called a monetary gain.
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The gain in purchasing power that is derived from holding monetary assets and/or monetary liabilities during a period of changing prices. An increase in prices tends to devalue monetary assets and monetary liabilities. Thus, if a firm's monetary liabilities exceeded its monetary assets, inflation would tend to produce monetary gains.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.