Economics/Glossary

"(more specialised glossaries are available on the Related Articles subpages of other economics articles)

• Arbitrage [r]: transactions to take advantage of a price differences of a product in different markets by buying where it is cheap and selling where it is dear. The possibility of arbitrage often prevents the occurrence of price differences. ^[e]
• Automatic stabilisers [r]: the tendency in times of falling economic activity for the government spending to rise, and for tax receipts to fall - and the reverse tendency in times of rising economic activity ^[e]
• Beta [r]: A measure of the degree to which the rate of return of a share tracks that of the equity market as a whole (defined as the covariance between the share's rate of return and the average market rate, divided by the variance of the market rate). If beta = 1 the share's rate of return moves in line with the market rate; if it is negative, it falls when the market rate rises. ^[e]
• Bill of Exchange [r]: A written order to pay the holder a stated sum of money at a stated date (otherwise known as a "draft", the person who is paid being termed the "drawer"). ^[e]
• Capital (banking) [r]: A bank's assets minus its liabilities. ^[e]
• Capital adequacy ratio [r]: The ratio of a bank's capital to its risk weighted credit exposures. May be defined in terms of tier 1 (core) or tier 2 capital. ^[e]
• Capital adequacy ratio [r]: The ratio of a bank's capital to its risk weighted credit exposures. May be defined in terms of tier 1 (core) or tier 2 capital. ^[e]
• Central Bank [r]: A government agency that is responsible for monetary policy and the support of the banking system (for example the Federal Reserve Board and the Bank of England). Usually responsible for controlling a country's monetary policy and preserving the value of its currency. ^[e]
• Commercial paper [r]: unsecured debt_instruments that are issued by corporations to meet short term financing needs (usually repayable after 3 months). ^[e]
• Contagion (banking) [r]: the spread of a run, loss or insolvency from one bank to another, or the spread of a banking crisis from one country to another. ^[e]
• Corporation [r]: Please do not use this term in your topic list, because there is no single article for it. Please substitute a more precise term. See Corporation (disambiguation) for a list of available, more precise, topics. Please add a new usage if needed.
• Cost_of_capital [r]: The weighted average of the rates of return paid by a company on its equity (share issue) and on its debt (bonds and commercial borrowing). ^[e]
• Covariance [r]: A statistical parameter that indicates whether two random variables show a related linear trend. ^[e]
• Credit crunch [r]: the failure of the banking system to satisfy the economy's need for credit. ^[e]
• Credit risk [r]: The risk that the value of a loan-based security will fall as a result of defaults on the part of borrowers (as distinct from interest rate risks and exchange rate risks). ^[e]
• Debt_instrument [r]: A formal obligation assumed by a borrower to replay the lender in accordance with the terms of an agreement, including bonds, debentures, promissory notes, leases and mortgages. ^[e]
• Deflation [r]: a persistent sequence of reductions in the general level of prices. ^[e]
• Derivative [r]: An asset whose value depends upon the expected value of another asset. ^[e]
• Discount window [r]: A facility provided by central banks that enables a bank to make secured short-term loans at its central bank's discount rate. ^[e]
• Discount_rate [r]: Add brief definition or description
• Fiat money [r]: Add brief definition or description
• Financial asset [r]: Add brief definition or description
• Financial_Intermediary [r]: Add brief definition or description
• Financial_regulator [r]: Add brief definition or description
• Fiscal stimulus [r]: Add brief definition or description
• Freddie Mac [r]: Add brief definition or description
• Hedging [r]: Add brief definition or description
• Herding (banking) [r]: Add brief definition or description
• Insolvency [r]: Add brief definition or description
• Interbank market [r]: Add brief definition or description
• Interest rate risk [r]: Add brief definition or description
• IS-LM model [r]: Add brief definition or description
• Lender of last resort [r]: Add brief definition or description
• Leverage [r]: Add brief definition or description
• Liquidity [r]: Add brief definition or description
• Liquidity trap [r]: Add brief definition or description
• Margin account [r]: Add brief definition or description
• Margin call [r]: Add brief definition or description
• Market risk [r]: Add brief definition or description
• Monetary base [r]: Add brief definition or description
• Money market [r]: Add brief definition or description
• Moral hazard [r]: Add brief definition or description
• Option [r]: Add brief definition or description
• Output gap [r]: Add brief definition or description
• Portfolio insurance [r]: Add brief definition or description
• Prime rate [r]: Add brief definition or description
• Quantitative easing [r]: Add brief definition or description
• Random_walk [r]: Add brief definition or description
• Recession (economics) [r]: Add brief definition or description
• Reserve ratio [r]: Add brief definition or description
• Risk premium [r]: Add brief definition or description
• Run (banking) [r]: Add brief definition or description
• Securitisation [r]: Add brief definition or description
• Selling short [r]: Add brief definition or description
• Standard deviation [r]: Add brief definition or description
• Structured investment vehicle [r]: Add brief definition or description
• Supply-side measures [r]: Add brief definition or description
• Systemic failure (finance) [r]: Add brief definition or description
• Value at risk [r]: Add brief definition or description
• Variance [r]: Add brief definition or description
• Warrant [r]: Add brief definition or description