Index

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.