Financial system/Related Articles: Difference between revisions

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imported>Nick Gardner
imported>Nick Gardner
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{{r|Certificate of deposit}}
{{r|Certificate of deposit}}
{{r|Closed end fund}}
{{r|Closed end fund}}
{{r|Collateral (finance)}}
{{r|Complex interactive system}}
{{r|Complex interactive system}}
{{r|Commercial paper}}
{{r|Commercial paper}}

Revision as of 07:42, 22 February 2010

Index

See the economics index for an index to topics referred to in the economics articles.

Parent articles

Economics

Subtopics

Banking

Bank failures and rescues

Related topics

Crash of 2008

Discount rate

Financial economics

International economics

Glossary

See the economics glossary for definitions not shown on this page

ABC

  • Adverse selection [r]: a partial market failure that occurs when there are traders who take advantage of asymmetric information, raising uncertainty and leading to a reduction in the value of its products. [e]
  • Asset (accountancy) [r]: An accountancy term for possessions that have money value - including, for balance sheet purposes, cash, investments, property and amounts owed by debtors. [e]
  • Asset (finance) [r]: A term used in finance to denote a legal claim on something that has monetary value, such as the acknowledgement of a debt or a share in the ownership of a company. [e]
  • Asymmetric information [r]: a situation in which a seller has information that is not available to potential buyers - or vice-versa. [e]
  • Backwardation [r]: (i) The amount by which the spot price exceeds the forward price, (ii)a fee paid by a seller to defer the delivery of securities. [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 (finance) [r]: {a) A loan with a duration of no more than a year (b)a documentary record of short-term indebtedness. [e]
  • Bond (finance) [r]: a fixed-interest security issued by governments, companies, banks and others. [e]
  • Bretton Woods [r]: An international conference held in 1944, which set up a system of fixed exchange rates linked to the US dollar which was to be freely convertible to gold, and created the International Monetary Fund. [e]
  • Broker [r]: Individual or firm that provides investment advise to clients and executes their buying and selling instructions, usually by acting as a market maker. [e]
  • Bubble (economics) [r]: A surge in prices that raises expectations of further increases, so generating further increases: a process that continues until confidence falters, the bubble "bursts" and prices rapidly revert to an objectively-based level. [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]
  • Carry trading [r]: the practice of borrowing at a low interest rate in order to invest at a higher interest rate, or of selling the currency of a country that has low interest rates and buying the currency of a country that has high interest rates. [e]
  • CDS [r]: Credit-Default Swap. An insurance agreement that guarantees protection against a bond default in return for a fee. [e]
  • CDS spread [r]: the annual percentage charge for a credit default swap [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]
  • Central counterparty [r]: An organisation that facilitates the settlement of contracts by acting as the buyer to every seller and as the seller to every buyer. [e]
  • Certificate of deposit [r]: A claim issued by a bank in return for an interest-paying deposit, that can be traded on the interbank market. [e]
  • Closed end fund [r]: An investment company that invests in shares and bonds, and that limits the number of its own shares that it issues - such as an investment trust. [e]
  • Collateral (finance) [r]: An asset, or other property of a borrower, that a creditor is entitled by a loan agreement to receive if the borrower defaults on the terms of the loan. [e]
  • Complex interactive system [r]: A system in which an event in one of its components can have significant repercussions in many other components; and which can exist in more states than can be enumerated - including "open systems" whose operation is affected by events that have been generated from outside (such as international trade in the case of an economic system). [e]
  • Commercial paper [r]: unsecured debt_instruments that are issued by corporations to meet short term financing needs (usually repayable after 3 months). [e]
  • Contracyclical regulation [r]: a policy of raising banks' statutory minimum capital adequacy ratios when asset prices are rising and relaxing them when asset prices are falling. [e]
  • Counterparty [r]: The legal term that is used to refer to each of the organisations or persons that are engaged in a transaction. [e]
  • Covered bond [r]: Add brief definition or description
  • Credit crunch [r]: Add brief definition or description
  • Credit risk [r]: Add brief definition or description

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Spread   see Yield spread