Correction is the act or effect of correcting, making a change to something that is considered incorrect.
The word comes from Latin correct, which means “amendment, rectification; censorship".
Correction is the process carried out with rigor, so that a certain object or situation is exact or with the objective of improving it. An example of correction in this sense is when the teacher performs the correction process of a test or a school exam.
It can also be attributed to the characteristic of someone who has a behavior that needs to be adjusted. In this context, she also characterizes the punitive measure given to someone who had a wrong attitude, as a kind of punishment.
Correction, in mathematical terms, refers to the value that is added or subtracted in an operation.
Monetary Correction
Also linked to the financial sector, monetary correction or restatement is the accounting operation where the necessary financial adjustments are made to avoid the loss of monetary value.
This operation is carried out with the objective of verifying the purchase prices of the real, Brazilian currency in circulation, taking into account the monetary value of other currencies. This process is known as currency adjustment. The operation can also be carried out using the country's accumulated inflation indices.
Savings Correction
Still linked to the financial sector, the correction is also an operation carried out in the processes of investments, such as savings, considered one of the most popular investments in Brazil, for having a low risk.
Savings are regulated by the Central Bank, having a remuneration of 0.5% per month and having a total of 6.17% per year, in addition to the TR variation, an index created to complement the interest paid in the savings.
Currently, it is possible to calculate the future earnings of savings, through an online simulator of the Central Bank, called the Citizen's Calculator. In this simulator, it is possible to make corrections from the current amount to the one already existing in the savings account, with all taxes included.