(A)
ADAPTIVE EXPECTATIONS
A theory that suggests individuals base future expectations on past events.
ADVERSE SELECTION
A situation where one party in a transaction has more information than the other, leading to unfavorable outcomes.
ADVERTISING
The act of promoting products or services to attract customers.
AGENCY COSTS
The costs incurred due to conflicts of interest between principals (owners) and agents (managers) in an organization.
AGRICULTURAL POLICY
Government decisions and actions related to farming, agriculture, and rural development.
AGRICULTURE
The practice of cultivating land and raising crops and animals for human use.
ALTRUISM
Selfless concern for the well-being of others.
AMORTIZATION
The gradual reduction of a debt or an intangible asset through regular payments over time.
ANIMAL SPIRITS
Emotional factors that influence human behavior and decision-making in economics and finance.
ANTITRUST
Laws and regulations aimed at promoting fair competition and preventing monopolies.
APPRECIATION
An increase in the value of an asset or currency over time.
ARBITRAGE
Profiting from price differences of the same asset in different markets.
ARBITRAGE PRICING THEORY
A theory that attempts to explain the relationship between expected returns and risk factors.
ASIAN CRISIS
A series of financial crises that affected several Asian economies in the late 1990s.
ASSETS
Items of value owned by an individual, organization, or country, which have the potential to generate future economic benefits.
ASYMMETRIC INFORMATION
A situation where one party has more information than the other, leading to imbalances in decision-making.
ASYMMETRIC SHOCK
An unexpected event that has a disproportionate impact on different sectors or regions of an economy.
AUCTIONS
Processes in which goods or services are sold to the highest bidder.
AUSTRIAN ECONOMICS
A school of economic thought emphasizing individual action, entrepreneurship, and the role of markets.
AUTARKY
An economic policy aimed at self-sufficiency, where a country produces all its needed goods and services domestically.
AVERAGE
A measure of central tendency that represents the typical value in a dataset.
(B)
BACKWARDATION
Normal backwardation, also sometimes called backwardation, is the market condition where the price of a commodity's forward or futures contract is trading below the expected spot price at contract maturity.
BALANCE OF PAYMENTS
The balance of payments (also known as balance of international payments and abbreviated BOP or BoP) of a country is the difference between all money flowing into the country in a particular period of time (e.g., a quarter or a year) and the outflow of money to the rest of the world. These financial transactions are made by individuals, firms and government bodies to compare receipts and payments arising out of trade of goods and services.
BALANCED BUDGET
A balanced budget (particularly that of a government) is a budget in which revenues are equal to expenditures. Thus, neither a budget deficit nor a budget surplus exists (the accounts "balance"). More generally, it is a budget that has no budget deficit, but could possibly have a budget surplus.
BANK
A bank is a financial institution that accepts deposits from the public and creates credit. It is a crucial component of the financial system, providing various services such as loans, savings accounts, and payment processing.
BANKRUPTCY
Bankruptcy is a legal process in which an individual or business entity that is unable to repay outstanding debts seeks relief from its creditors. It allows for the orderly resolution of financial distress and a fresh start for the debtor.
BARRIERS TO ENTRY (OR EXIT)
Barriers to entry (or exit) are obstacles that make it difficult for new firms to enter a market or for existing firms to leave a market. These barriers can include factors such as high startup costs, government regulations, and established competitors.
BARTER
Barter is a system of exchange where goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money. It was a common form of trade before the advent of currency.
BASEL 1 AND 2
Basel I and Basel II are international banking regulations that provide guidelines for banks to maintain adequate capital levels based on their risk profiles. These regulations aim to promote financial stability and ensure that banks have sufficient reserves to cover potential losses.
BASIS POINT
A basis point is a unit of measurement used in finance to describe the percentage change in interest rates or other financial metrics. One basis point is equal to one-hundredth of a percentage point (0.01%).
BEAR
A bear is an investor who expects the price of a financial instrument, such as a stock or market, to decline. Bears engage in "bearish" strategies to profit from falling prices.
BEHAVIOURAL ECONOMICS
Behavioral economics combines psychology and economics to understand how individuals make economic decisions. It explores the influence of cognitive biases, emotions, and social factors on decision-making.
BETA
Beta is a measure of a stock's volatility in relation to the overall market. It helps investors assess the risk associated with a particular stock by indicating how much it may move in relation to market movements.
BIG MAC INDEX
The Big Mac Index is an informal economic indicator that compares the purchasing power of different currencies by looking at the price of a Big Mac hamburger in various countries.
BLACK ECONOMY
The black economy refers to economic activities that occur outside the official channels of taxation and regulation. It includes unreported income, undeclared transactions, and illegal economic activities.
BLACK-SCHOLES
The Black-Scholes model is a mathematical formula used to calculate the theoretical value of European-style options. It has been widely used in the field of financial derivatives and has contributed to the understanding of options pricing.
BONDS
Bonds are debt securities issued by governments or corporations to raise capital. Investors who purchase bonds are essentially lending money to the issuer in exchange for periodic interest payments and the return of the bond's face value at maturity.
BOUNDED RATIONALITY
Bounded rationality is a concept in behavioral economics that suggests that human decision-making is limited by cognitive constraints, such as information overload and time constraints. Individuals make decisions that are "good enough" rather than fully rational.
BRAND
A brand is a unique identifier that distinguishes a product, service, or company from its competitors. It encompasses the company's reputation, values, and the emotional connection it establishes with consumers.
BRETTON WOODS
The Bretton Woods Agreement, established in 1944, created a system of fixed exchange rates that linked major world currencies to the U.S. dollar. It also led to the creation of international institutions like the International Monetary Fund (IMF) and the World Bank.
BUBBLE
A bubble refers to a situation in which the prices of assets, such as stocks or real estate, become significantly inflated due to excessive speculation and investor enthusiasm. Eventually, the bubble bursts, leading to a rapid decline in prices.
BUDGET
A budget is a financial plan that outlines an individual's or organization's projected income and expenses over a specific period. Budgeting helps in managing finances, setting financial goals, and making informed spending decisions.
BULL
A bull is an investor who anticipates rising prices in a market or asset. Bulls engage in "bullish" strategies to profit from upward price movements.
BUSINESS CONFIDENCE
Business confidence refers to the level of optimism or pessimism that businesses have about the economy's future performance. It can influence investment decisions and overall economic activity.
BUSINESS CYCLE
The business cycle is the recurring pattern of expansion (growth) and contraction (recession) in an economy over time. It consists of four phases: expansion, peak, contraction, and trough.
BUYER'S MARKET
A buyer's market occurs when there are more goods or services available than there are buyers. This can lead to lower prices and more favorable terms for buyers in negotiations.
0 comments:
Post a Comment