Common Economical Library Terminology

Please see economic terminologies and library of definitions:

• 401(k) plan: a defined contribution pension plan offered by US employers.
• Absolute advantage: the ability of a country or firm to produce a good or service at a lower cost than another country or firm.
• Absolute poverty: poverty defined in terms of a specific minimum standard of living, such as the ability to meet basic needs for survival.
• Alternative investments: investments other than stocks, bonds, and cash. Examples include private equity, hedge funds, and real assets.
• Anchoring: the tendency for people to rely too heavily on the first piece of information they receive when making decisions.
• Angel Investor: an individual who provides capital to a startup company in exchange for an ownership stake.
• Anti-money laundering (AML): the practice of preventing money obtained through illegal activities from being used to fund other illegal activities.
• Appreciation: an increase in the value of a currency in relation to other currencies.
• Arbitrage: the practice of taking advantage of price discrepancies between different markets or exchanges in order to make a profit.
• Artificial intelligence (AI) and machine learning (ML) in finance: the use of AI and ML technologies to automate and improve financial decision-making, risk management, and fraud detection.
• Asset allocation: the process of determining the mix of different asset classes, such as stocks, bonds, and cash, in an investment portfolio.
• Asset management: the practice of managing assets, such as investments, real estate, or infrastructure, on behalf of clients.
• Asset-backed security (ABS): a type of security that is backed by a pool of assets, such as mortgages, car loans, or credit card receivables.
• Austerity: a fiscal policy strategy in which a government reduces spending or increases taxes in order to reduce budget deficits and stabilize public finances.
• Austerity: a fiscal policy that emphasizes reducing government spending and increasing taxes to address budget deficits.
• Austerity: a policy of reducing government spending and increasing taxes in order to reduce a budget deficit.
• Austerity: a policy of reducing government spending in order to reduce budget deficits and public debt.
• Automated Clearing House (ACH): an electronic network for financial transactions in the United States that facilitates the transfer of funds between banks and other financial institutions.
• Automated Teller Machine (ATM): a computerized machine that provides customers with cash withdrawals and deposit capabilities, as well as other banking services, with the use of a banking card.
• Automatic stabilizers: features of the tax and transfer system that automatically provide stabilizing effects on the economy during business cycle fluctuations.
• Balance of Payment: a record of all economic transactions between a country and the rest of the world in a given period of time, typically one year.
• Balance of payments: a record of a country’s international transactions, including trade, investments, and transfers.
• Balance of trade: the difference between a country’s exports and imports of goods and services.
• Balance of trade: the difference between a country’s exports and imports.
• Balance of trade: the difference between the value of a country’s exports and imports.
• Basel III: a set of regulatory standards issued by the Basel Committee on Banking Supervision that aims to strengthen the regulation and supervision of banks with the goal of promoting financial stability.
• Behavioral economics: the study of how psychological, social, and emotional factors influence economic decision-making.
• Behavioral economics: the study of how psychological, social, and emotional factors influence economic decisions and behavior.
• Behavioral economics: the study of how psychological, social, emotional, and cognitive factors influence economic decisions and behavior.
• Behavioral finance: the study of how psychological factors influence investors’ decisions and financial markets.
• Behavioral finance: the study of how psychological, social, emotional, and cognitive factors influence financial decisions and behavior.
• Biometric authentication: the use of physical or behavioral characteristics, such as fingerprints, facial recognition, or voice recognition, to verify an individual’s identity.
• Blockchain: a decentralized digital ledger that records transactions across a network of computers.
• Bond market: a market where bonds (debt securities issued by companies or governments) are bought and sold.
• Bond market: a market where bonds issued by governments and companies are bought and sold.
• Bond: a debt security, in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period of time at a fixed interest rate.
• Bounded rationality: the idea that people’s decision-making is limited by their cognitive abilities and the information available to them.
• Budget deficit: the amount by which government spending exceeds government revenue in a given period of time.
• Budget deficit: the amount by which government spending exceeds revenue in a given fiscal year.
• Budget deficit: the difference between government spending and revenue.
• Budget surplus: the amount by which government revenue exceeds government spending in a given period of time.
• Budget surplus: the amount by which government revenue exceeds spending in a given fiscal year.
• Budget surplus: the difference between government revenue and spending, where revenue is greater than spending.
• Budget: a financial plan for a specific period of time, outlining the government’s revenue and expenditure.
• Budget: a financial plan that outlines a government’s revenue and spending for a specific period of time, usually a fiscal year.
• Business confidence: the degree of optimism or pessimism that business leaders have about the future of the economy.
• Business cycle: the fluctuations in economic activity, such as employment and production, around its long-term growth trend.
• Business cycle: the fluctuations of economic activity around its long-term growth trend, characterized by periods of expansion and contraction.
• Business cycle: the natural fluctuation of economic activity, typically characterized by periods of expansion and contraction.
• Business cycle: the natural fluctuations in economic activity characterized by periods of growth and expansion, followed by periods of contraction and recession.
• Business cycle: the natural fluctuations of an economy, typically characterized by periods of expansion and contraction.
• Business cycle: the natural fluctuations of economic activity, characterized by periods of expansion and contraction.
• Capital account: a country’s net financial transactions with foreign countries, including the purchase and sale of assets such as stocks, bonds, and real estate.
• Capital account: a country’s transactions in financial assets and liabilities, including investments and loans.
• Capital account: part of balance of payment, It records the change in ownership of an economy’s assets to foreigners or change in the ownership of foreign assets by domestic residents.
• Capital account: the balance of payments account that records a country’s international transactions in financial assets and liabilities.
• Capital account: the balance of payments account that records all transactions involving a change of ownership of a country’s non-produced, non-financial assets.
• Capital account: the difference between a country’s inflows and outflows of capital, such as investments and loans.
• Capital account: the portion of a country’s balance of payments that records international transactions in financial assets and liabilities.
• Capital accumulation: the process of increasing the capital stock through investment in new capital goods.
• Capital adequacy: the requirement that a bank hold a certain minimum amount of capital in relation to its assets in order to reduce the risk of insolvency.
• Capital deepening: an increase in the amount of capital per worker.
• Capital deepening: the process of increasing the capital stock per worker.
• Capital flight: the movement of capital out of a country, often due to economic or political instability.
• Capital flight: the movement of capital out of a country, typically to avoid high taxes or political instability.
• Capital formation: the process of accumulating capital stock, through investments in physical and human capital.
• Capital formation: the process of acquiring and creating new capital goods.
• Capital formation: the process of creating new capital through investment in new capital goods.
• Capital gains tax: a tax on the profit made from the sale of an asset, such as a stock or real estate property.
• Capital goods: goods that are used to produce other goods and services, such as machinery, equipment, and buildings.
• Capital goods: goods used to produce other goods, such as machines and factories.
• Capital market efficiency: the degree to which the prices in a capital market reflect all available information.
• Capital market: a market for long-term investment, where securities such as stocks, bonds, and real estate are bought and sold.
• Capital market: a market where financial instruments, such as stocks and bonds, are bought and sold.
• Capital stock: the total value of a country’s capital goods, including both physical capital (e.g. buildings and machinery) and human capital (e.g. education and training).
• Capital stock: the total value of all capital goods in an economy.
• Capital stock: the total value of all the physical and financial assets in a country, including buildings, machinery, and infrastructure.
• Capital stock: the total value of all the physical and human capital in an economy.
• Capital structure: the way a firm finances its operations and growth, through a combination of debt and equity.
• Capital widening: an increase in the variety of capital goods in an economy.
• Capital: the resources, both financial and non-financial, that are used to produce goods and services.
• Capital: the resources, both financial and physical, used to produce goods and services.
• Capital: the stock of physical and financial assets that are used to produce goods and services.
• Carbon offsetting: the practice of compensating for emissions of carbon dioxide by investing in projects that reduce or remove the same amount of carbon dioxide from the atmosphere.
• Cartel: an agreement among firms to fix prices, limit production, or share markets or customers.
• Causality: the relationship between an event (the cause) and a second event (the effect), where the second event is a result of the first.
• Central Bank Digital Currency (CBDC): a digital version of a country’s fiat currency, issued and backed by the central bank of that country.
• Central bank: the main institution responsible for implementing monetary policy in a country.
• Cloud computing: the delivery of computing services, such as servers, storage, databases, networking, software, analytics, and intelligence, over the internet.
• Coincident indicators: economic indicators that tend to change at the same time as the economy as a whole changes, used to measure current economic activity.
• Collateralized debt obligation (CDO): a type of security that is backed by a pool of debt obligations, such as corporate bonds or mortgages.
• Command economy: an economic system in which the government controls the production and distribution of goods and services.
• Commercial credit: credit extended to businesses for business use, such as working capital or inventory financing.
• Commercial mortgage-backed security (CMBS): a type of security that is backed by a pool of mortgages on commercial properties.
• Commodities: raw materials such as metals, agricultural products, and energy.
• Commodity market: a market where raw or primary products are traded. This includes agriculture and mining products as well as precious metals and energy.
• Common resources: goods or services that are rivalrous but non-excludable, meaning that they can be consumed by multiple people at the same time but the availability of the good or service for others will be reduced.
• Common resources: resources that are rival in consumption but non-excludable, meaning that one person’s use of the resource reduces the amount available for others, but it is difficult or impossible to prevent people from using them.
• Community development finance: the practice of providing financial services, such as loans, savings, and insurance, to individuals and small businesses in under-served communities in developed countries.
• Comparative advantage: the principle that a country should specialize in producing goods and services for which it has a lower opportunity cost, and trade for goods and services for which other countries have a lower opportunity cost.
• Complex systems: systems that are composed of many interacting parts and exhibit non-linear behavior, with the whole behaving differently than the sum of its parts.
• Consumer confidence: the degree of optimism or pessimism that consumers have about the future of the economy.
• Consumer credit: credit extended to individuals for personal use, such as mortgages, car loans, and credit card debt.
• Consumer Financial Protection Bureau (CFPB): a U.S. government agency established by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 that is responsible for protecting consumers from unfair, deceptive, or abusive practices by financial institutions.
• Consumer Price Index (CPI): a measure of the average change in prices of a basket of goods and services consumed by households.
• Consumer price index (CPI): a measure of the average change in prices over time of a basket of goods and services consumed by households.
• Consumer price index (CPI): a measure of the average change over time in the prices paid by consumers for a basket of goods and services.
• Consumer Price Index (CPI): a measure of the average price level of a basket of consumer goods and services.
• Consumer protection: the practice of protecting consumers from unfair, deceptive, or abusive practices by financial institutions.
• Consumer spending: the total amount of money spent by households on goods and services.
• Contactless payments: a type of mobile payment that allows individuals to make transactions without physically swiping or inserting their card, usually by using near field communication (NFC) technology.
• Contingent claim: a financial contract that pays out a specified amount if a specified event occurs.
• Contraction: a period of decreasing economic activity, characterized by falling employment and output.
• Contraction: the period of the business cycle when economic activity is decreasing, characterized by decline in employment, production, and income.
• Contractionary fiscal policy: a policy that reduces government spending or increases taxes to slow down economic growth.
• Contractionary monetary policy: a policy that decreases the money supply and raises interest rates to slow down economic activity.
• Contractionary policy: a policy designed to decrease economic activity, such as by decreasing government spending or raising taxes.
• Cooperative game: a game in which players can make binding agreements, such as contracts, to influence the outcome.
• Core inflation: a measure of inflation that excludes certain volatile items such as food and energy prices.
• Corporate bond: a debt security issued by a corporation to raise capital.
• Corporate finance: the study of how firms make financial decisions and how those decisions affect their value.
• Cost-push inflation: inflation caused by an increase in the cost of production, such as an increase in the price of inputs.
• Credit bureau: a company that collects and maintains credit information on individuals and businesses and provides that information to lenders and other entities.
• Credit bureau: a company that collects and maintains credit-related information about individuals and businesses.
• Credit default swap (CDS): a type of derivative in which one party pays a fee to another party in exchange for protection against the risk of default on a debt security.
• Credit default swap (CDS): a type of financial contract that allows the buyer to protect against the risk of default on a debt security.
• Credit default swap: a financial contract that allows an investor to transfer credit risk to a third party in exchange for a fee.
• Credit history: a record of an individual’s past borrowing and repayment behavior.
• Credit rating agency: a company that assesses the creditworthiness of individuals, companies, and countries and assigns credit ratings accordingly.
• Credit report: a record of an individual’s credit history, including information about loans and credit cards, payment history, and outstanding balances.
• Credit report: a record of an individual’s or business’ credit history, including information about credit accounts, payment history, and credit inquiries.
• Credit risk: the risk that a borrower will default on a loan or credit card debt.
• Credit score: a numerical rating that reflects an individual’s creditworthiness, based on information in their credit report.
• Credit scoring model: a mathematical formula that uses information from a borrower’s credit report to predict their likelihood of defaulting on a loan.
• Credit scoring: a statistical method used to evaluate the creditworthiness of potential borrowers, based on their credit history and other factors.
• Credit scoring: the process of using statistical models to evaluate an individual’s creditworthiness and assign a numerical score.
• Credit utilization: the amount of credit an individual is currently using in relation to the amount of credit available to them.
• Credit: an agreement in which a lender agrees to lend money to a borrower, with the understanding that the money will be repaid with interest.
• Cross elasticity of demand: a measure of how responsive the quantity demanded of one good is to a change in the price of another good, calculated as the percentage change in quantity demanded of the first good divided by the percentage change in price of the second good.
• Crowding out: a phenomenon in which an increase in government spending leads to a decrease in private investment spending.
• Cryptocurrency: a digital or virtual currency that uses cryptography for security and operates independently of a central bank.
• Currency appreciation: an increase in the value of a country’s currency relative to other currencies.
• Currency appreciation: an increase in the value of a currency in terms of another currency.
• Currency depreciation: a decrease in the value of a currency in terms of another currency.
• Currency devaluation: a decrease in the value of a country’s currency relative to other currencies.
• Currency swap: an agreement between two parties to exchange a specific amount of one currency for another currency at a specified exchange rate and on a specified date.
• Current account: a country’s balance of trade, as well as its income from investments and transfers.
• Current account: a country’s balance of trade, plus net income from investments and transfer payments.
• Current account: a country’s trade balance plus net income from abroad and transfers.
• Current account: part of balance of payment, It records a country’s net trade in goods and services, as well as net income from abroad and net transfer payments.
• Current account: the balance of trade, including income and transfer payments, in a country’s balance of payments.
• Current account: the difference between a country’s exports and imports of goods and services, as well as its net income from investments and transfers.
• Current account: the portion of a country’s balance of payments that records international transactions in goods, services, and income.
• Cybersecurity: the practice of protecting networks, devices, and sensitive information from unauthorized access, use, disclosure, disruption, modification, or destruction.
• Cyclical unemployment: unemployment that arises from a downturn in the business cycle.
• Decentralized finance (DeFi): a financial system built on blockchain technology that allows for peer-to-peer transactions and decentralized decision-making.
• Default: a failure to pay back a loan or meet the terms of a bond agreement.
• Defined benefit pension plan: a pension plan in which the benefit is defined and the employer is responsible for investing the funds and managing the plan.
• Defined contribution pension plan: a pension plan in which the employee is responsible for investing the funds and managing the plan.
• Deflation: a situation in which the general price level of goods and services is falling.
• Deflation: a sustained decrease in the general price level of goods and services in an economy over a period of time.
• Deflation: the opposite of inflation, a sustained decrease in the general price level of goods and services.
• Demand-pull inflation: inflation caused by an increase in aggregate demand for goods and services.
• Demand-side economics: an economic theory that argues that economic growth can be most effectively created by increasing consumer demand, through government spending or tax cuts.
• Demand-side economics: the theory that economic growth can be most effectively created by increasing consumer demand through government spending and tax cuts.
• Depreciation: a decrease in the value of a currency in relation to other currencies.
• Depreciation: the decline in value of a capital good over time due to wear and tear, obsolescence, or other factors.
• Depression: a severe and prolonged recession.
• Depressions: a severe and prolonged period of economic decline, typically characterized by a decrease in GDP, employment, and prices (deflation).
• Derivative: a financial contract that derives its value from an underlying asset, such as a stock, bond, commodity, or currency.
• Derivative: a financial contract whose value is derived from the value of an underlying asset, such as a stock, commodity, or currency.
• Derivatives regulation: the process of setting rules and guidelines for the derivatives market in order to protect consumers and maintain the stability of the financial system.
• Derivatives: financial contracts whose value is derived from an underlying asset, such as a stock, commodity, or currency.
• Derivatives: financial contracts whose value is derived from an underlying asset, such as stocks, bonds, commodities, currencies, or interest rates.
• Digital identity: the use of digital technologies to verify and authenticate an individual’s identity for various transactions and services.
• Digital payments: the use of digital technologies, such as mobile phones and the internet, to facilitate financial transactions.
• Digital signature: an electronic form of a signature that is used to authenticate the identity of the signer and to ensure the integrity of the document being signed.
• Digital wallet: a digital storage service that allows individuals to store and manage their payment information, such as credit card and bank account details, in one place for easy use in e-commerce transactions and other digital payments.
• Diminishing marginal utility: the principle that as more and more units of a good or service are consumed, the additional satisfaction or benefit derived from each additional unit will decrease.
• Direct Debit: a financial transaction in which a payer authorizes a payee to collect money directly from the payer’s bank account.
• Discount rate: the interest rate at which banks can borrow from the central bank.
• Discount rate: the interest rate at which banks can borrow money from the central bank.
• Discretionary fiscal policy: government actions that are taken in response to economic conditions, such as changes in spending or tax rates.
• Disinflation: a decrease in the rate of inflation.
• Disinflation: a slowing down of the rate of inflation.
• Disposable income: the total income that remains after taxes and other deductions have been taken.
• Diversification: the practice of spreading investments across a variety of asset classes, sectors, and countries in order to reduce the overall risk of a portfolio.
• Diversification: the practice of spreading investments among a variety of different securities or assets in order to reduce risk.
• Dominant strategy: a strategy that is the best choice for a player regardless of the strategies chosen by the other players.
• Duopoly: a market structure characterized by two firms that dominate the market and have some control over price.
• Duopoly: a market structure characterized by two firms that dominate the market.
• E-commerce: the buying and selling of goods and services over the internet.
• Econometrics: the application of statistical methods to economic data in order to test hypotheses and estimate relationships between variables.
• Econometrics: the branch of economics that uses statistical and mathematical methods to analyze economic data and make predictions about economic behavior.
• Economic growth: an increase in a country’s ability to produce goods and services over time, typically measured by the increase in GDP.
• Economic growth: an increase in the ability of an economy to produce goods and services, typically measured by an increase in gross domestic product (GDP) or gross national product (GNP) over time.
• Economic growth: an increase in the amount of goods and services produced by an economy over a period of time.
• Economic history: the study of how economies have evolved over time and the factors that have influenced economic growth and development.
• Economic integration: the process of integrating economies through the removal of trade barriers and the coordination of economic policies.
• Economic sanctions: a government’s restriction of trade, financial transactions or other economic activities with a foreign country or group of countries, in order to achieve a political or strategic goal.
• Economic systems: the various ways in which a society organizes the production, distribution, and consumption of goods and services.
• Efficiency: a state in which resources are used in the most effective way to achieve a given goal.
• Efficient market hypothesis: the theory that financial markets are efficient and that prices reflect all available information.
• Elasticity: a measure of how responsive quantity demanded or supplied is to a change in price or another variable.
• Elasticity: a measure of the responsiveness of the quantity of a good demanded or supplied to changes in price or other economic factors.
• Electronic Funds Transfer (EFT): the electronic transfer of funds from one bank account to another, either within a single financial institution or across multiple institutions.
• Embargo: a government-imposed ban on trade with a specific country or group of countries.
• Entitlement program: a government program that provides benefits to certain eligible individuals or groups, such as social security and Medicaid.
• Entrepreneurship: the process of creating or starting a new business venture in order to make a profit.
• Entrepreneurship: the process of starting and running a new business venture, typically characterized by innovation and risk-taking.
• Environmental economics: the study of how economic activity affects the natural environment and how environmental factors affect economic activity.
• Equity: a state in which resources are distributed fairly among members of a society.
• ESG investing: Environmental, social, and governance investing focus on companies that are environmentally and socially responsible and have good corporate governance.
• Estate tax: a tax imposed on the transfer of assets from a deceased person to their heirs.
• ETF (Exchange-Traded Fund): a type of investment fund that is traded on stock exchanges, similar to stocks.
• Exchange rate: the value of one country’s currency in relation to another country’s currency.
• Exchange rate: the value of one country’s currency in relation to the currency of another country.
• Exchange rate: the value of one country’s currency in terms of another country’s currency.
• Exchange rate: the value of one currency in relation to another currency.
• Exchange rate: the value of one currency in terms of another currency.
• Exchange-Traded Fund (ETF): a type of investment fund that is traded on stock exchanges, similar to stocks.
• Excise tax: a tax imposed on the sale of a specific good or service, such as alcohol, tobacco, or fuel.
• Expansion: a period of increasing economic activity, characterized by rising employment and output.
• Expansion: the period of the business cycle when economic activity is increasing, characterized by growth in employment, production, and income.
• Expansionary fiscal policy: a policy that increases government spending or reduces taxes to stimulate economic growth.
• Expansionary monetary policy: a policy that increases the money supply and lowers interest rates to stimulate economic activity.
• Expansionary policy: a policy designed to increase economic activity, such as by increasing government spending or cutting taxes.
• Export: the process of sending goods or services out of a country to another country.
• Externalities: costs or benefits of an economic activity that affect people not directly involved in the activity.
• Externalities: the impact of an economic transaction on a third party not directly involved in the transaction.
• Externalities: the impact of one person’s actions on the well-being of a bystander.
• Externalities: the positive or negative effects of an economic transaction that are experienced by a third party not directly involved in the transaction.
• Fair lending: the practice of ensuring that all borrowers have an equal opportunity to access credit, regardless of their race, gender, or other protected characteristics.
• Financial Action Task Force (FATF): an inter-governmental organization that sets standards and promotes effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing, and other related threats to the integrity of the international financial system.
• Financial Crimes Enforcement Network (FinCEN): a bureau of the U.S. Department of the Treasury that collects and analyzes information about financial transactions in order to combat money laundering, terrorist financing, and other financial crimes.
• Financial crisis: a sudden and severe disruption of the financial system, typically characterized by a sharp drop in asset prices and a credit crunch.
• Financial fraud: any deception or illegal activity that results in financial loss for individuals or organizations.
• Financial inclusion: refers to the access and usage of financial services by all individuals and businesses, regardless of their income level, location, or level of education.
• Financial inclusion: the practice of ensuring that everyone has access to the financial services they need to manage their money effectively.
• Financial innovation: the development of new financial products, services, and technologies.
• Financial intermediaries: institutions, such as banks and insurance companies, that channel funds from savers to borrowers.
• Financial leverage: the use of borrowed funds to increase the potential return on an investment.
• Financial literacy: the knowledge and skills necessary to make informed and effective decisions regarding the use and management of money.
• Financial literacy: the knowledge and skills required to make informed decisions about the management of money.
• Financial planning: the process of creating a strategy to manage money and achieve financial goals.
• Financial regulation: the practice of setting rules and guidelines for financial institutions and markets in order to protect consumers and maintain the stability of the financial system.
• Financial regulation: the rules and policies put in place by governments to oversee and stabilize the financial system.
• Financial Stability Oversight Council (FSOC): a council of regulators established by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 to identify and mitigate potential threats to the financial stability of the United States.
• Financial technology (fintech): the use of technology to improve and automate financial services, such as banking, lending, and investing.
• Fiscal consolidation: a decrease in government spending or an increase in taxes to reduce budget deficits.
• Fiscal deficit: the amount by which government spending exceeds revenue.
• Fiscal deficit: the difference between a government’s spending and its revenue.
• Fiscal deficit: the difference between a government’s spending and revenue, where spending is greater than revenue, and it needs to borrow funds to meet its financial obligations.
• Fiscal deficit: the difference between a government’s total spending and total revenue in a given period of time.
• Fiscal policy: the actions taken by a government to influence the economy through changes in spending and taxation.
• Fiscal policy: the actions taken by the government to influence the economy through spending and taxation.
• Fiscal policy: the use of government spending and taxation to influence the economy.
• Fiscal stimulus: a fiscal policy strategy in which a government increases spending or reduces taxes in order to stimulate economic activity.
• Fiscal stimulus: an increase in government spending or a decrease in taxes to stimulate economic activity.
• Fiscal surplus: the amount by which government revenue exceeds spending.
• Fiscal surplus: the difference between a government’s revenue and its spending.
• Fiscal surplus: the difference between a government’s spending and revenue, where revenue is greater than spending, and it has funds left over after meeting its financial obligations.
• Fiscal surplus: the opposite of a fiscal deficit, it occurs when a government’s total revenue exceeds its total spending in a given period of time.
• Fixed exchange rate: an exchange rate that is pegged to the value of another currency or a basket of currencies.
• Fixed exchange rate: an exchange rate that is set by a country’s government and may be adjusted periodically.
• Flat tax: a tax system in which all taxpayers are subject to the same tax rate, regardless of their income level.
• Flat tax: a tax system in which the tax rate is the same for all taxpayers regardless of their income level.
• Floating exchange rate: an exchange rate that is determined by supply and demand in the foreign exchange market.
• Foreign direct investment (FDI): investment in a foreign country by a company or individual, usually in the form of building a factory or acquiring a controlling stake in a foreign company.
• Foreign Direct Investment (FDI): Investment made by a company or individual from one country into business interests in another country.
• Foreign Direct Investment (FDI): investment made by a company or individual in one country into business interests located in another country.
• Foreign direct investment: an investment made by a company or individual in one country into a company or entity based in another country.
• Foreign exchange market: a market in which currencies are bought and sold.
• Foreign Exchange Reserve: a reserve of foreign currency held by a central bank or other monetary authority, used to stabilize the domestic currency and support international trade.
• Foreign exchange reserves: the amount of foreign currency held by a country’s central bank to stabilize its currency and meet its international financial obligations.
• Forward contract: a contract to buy or sell an underlying asset at a specified price on a specified date in the future.
• Forward contract: a type of derivative that obligates two parties to exchange an underlying asset at a specified future date and price.
• Forward rate agreement: a financial contract that allows an investor to lock in a future interest rate.
• Free trade: the absence of government-imposed restrictions on the movement of goods and services between countries.
• Free trade: the absence of tariffs, quotas, and other trade barriers.
• Free trade: the policy of removing trade barriers and allowing goods and services to flow freely between countries.
• Frictional unemployment: unemployment that arises from the normal process of workers moving between jobs.
• Full employment: the situation in which all individuals who are willing and able to work are able to find jobs.
• Futures contract: a type of derivative that obligates two parties to exchange an underlying asset at a specified future date and price on a regulated exchange.
• Futures: a financial contract that obligates the holder to buy or sell an underlying asset at a specified price on a specified date in the future.
• Futures: a type of derivative contract in which the buyer agrees to purchase a specific asset or commodity at a future date at a price agreed upon today.
• Game theory: the study of mathematical models of strategic interaction among rational decision-makers.
• Game theory: the study of strategic decision making, in which the outcome of a decision depends on the actions of multiple parties.
• GDP per capita: GDP divided by the total population.
• Gini coefficient: a measure of inequality in which a value of 0 represents perfect equality (everyone has the same income or wealth) and a value of 1 represents perfect inequality (one person has all the income or wealth).
• Government intervention: actions taken by the government to regulate or influence economic activity.
• Government spending: the use of government funds to finance public goods and services, transfer payments, and other expenses.
• Granger causality: a statistical test used to determine whether one time series is useful in forecasting another.
• Green Bond: a bond that is issued to finance projects or initiatives that have environmental benefits.
• Gross domestic income (GDI): a measure of the total income generated by the production of goods and services within a country.
• Gross domestic product (GDP): a measure of the total value of goods and services produced within a country in a given period of time.
• Gross Domestic Product (GDP): the monetary value of all goods and services produced within a country in a given period of time, typically a year.
• Gross Domestic Product (GDP): the monetary value of all the finished goods and services produced within a country’s borders in a specific time period, typically a year.
• Gross domestic product (GDP): the total value of all goods and services produced within a country in a given period of time.
• Gross domestic product (GDP): the total value of goods and services produced within a country in a given period of time, typically a year.
• Gross Domestic Product (GDP): the total value of goods and services produced within a country in a given period of time, typically one year.
• Gross Domestic Product (GDP): the total value of goods and services produced within a country in a given period of time.
• Gross domestic product (GDP): the total value of goods and services produced within a country’s borders in a given period of time (usually a year).
• Gross investment: the total amount of spending on capital goods, including both fixed investment (e.g. buildings and machinery) and inventory investment.
• Gross investment: the total amount spent on fixed assets, such as factories and equipment, plus changes in inventory levels.
• Gross national income (GNI): the total value of all goods and services produced by a country’s residents, including income earned abroad.
• Gross National Income (GNI): the total value of income generated by a country’s residents, regardless of their location.
• Gross national product (GNP): a measure of the total value of goods and services produced by a country’s residents, regardless of their location, in a given period of time.
• Gross National Product (GNP): the monetary value of all goods and services produced by a country’s residents, regardless of their location, in a given period of time.
• Gross national product (GNP): the total value of all goods and services produced by a country’s residents, regardless of their location.
• Gross National Product (GNP): the total value of all the final goods and services produced by a country’s residents, whether they are living in the country or abroad.
• Gross national product (GNP): the total value of goods and services produced by a country’s citizens, regardless of where they are located.
• Gross National Product (GNP): the total value of goods and services produced by a country’s residents, regardless of their location.
• Gross National Product (GNP): the total value of goods and services produced by a country’s residents, regardless of where they are located.
• Gross national product (GNP): the total value of goods and services produced by a country’s residents, whether they are located in the country or abroad.
• Gross Private Domestic Investment (GPDI): the sum of all private investments in an economy, including investments in residential and nonresidential structures, equipment and software, and inventories.
• Health insurance: a type of insurance that pays for medical expenses.
• Hedge fund: an investment fund that uses a range of strategies, such as leveraged and short positions, to generate high returns.
• Hedge fund: an investment fund that uses a variety of techniques, such as leveraging and short selling, to generate high returns.
• Hedge funds: a type of investment fund that uses a variety of strategies, such as leverage and short selling, to generate high returns.
• Hedge funds: investment funds that use a variety of techniques, such as leveraging and short selling, to generate high returns.
• Hedge: an investment made with the intention of reducing the risk of an existing investment.
• Hedging: the practice of taking offsetting positions in order to reduce the risk of an existing investment.
• Heuristics: mental shortcuts that people use to make decisions quickly and efficiently.
• Human capital: the knowledge, skills, and abilities of a population that can be used to produce goods and services.
• Human capital: the knowledge, skills, and abilities of a workforce.
• Human capital: the knowledge, skills, and abilities of individuals that are used to produce goods and services.
• Human capital: the knowledge, skills, and abilities of individuals that can be used to produce goods and services.
• Human development index (HDI): a composite measure of a country’s average achievements in health, education, and standard of living.
• Human Development Index (HDI): a composite statistic of life expectancy, education, and income indicators used to rank countries into four tiers of human development.
• Human Development Index (HDI): a composite statistic of life expectancy, education, and per capita income indicators, which are used to rank countries into four tiers of human development.
• Hyperinflation: a situation in which the inflation rate is extremely high and out of control.
• Hyperinflation: a very high rate of inflation, usually over 50% per month.
• Hyperinflation: an extremely high rate of inflation, typically over 50% per month.
• Hyperinflation: extremely high and accelerating inflation.
• I hope this helps you understand the various terms and concepts used in finance, economics, trade, investment, and regulations. If you have any specific question or need more detail on any of the terms I listed, I’ll be happy to help.
• Identification: the process of distinguishing between different explanations for a particular relationship or phenomenon.
• Impact investing: the practice of investing in companies, organizations, and funds with the intention of generating a measurable social or environmental impact, in addition to financial return.
• Import quota: a restriction on the quantity of a good or service that can be imported into a country.
• Import: the process of bringing goods or services into a country from another country.
• Incentives: something that causes a person to act.
• Income elasticity of demand: a measure of how responsive quantity demanded is to a change in income, calculated as the percentage change in quantity demanded divided by the percentage change in income.
• Income inequality: the unequal distribution of income among individuals or households in a population.
• Incomes policy: government policies aimed at influencing the distribution of income and wealth in society.
• Inequality: a measure of the distribution of income or wealth among individuals or groups in a population.
• Inflation expectations: the expected rate of inflation over a specific time period as predicted by consumers, firms, or financial market participants.
• Inflation rate: the percentage change in the general price level of goods and services in an economy over a period of time.
• Inflation rate: the percentage change in the general price level of goods and services over a certain period of time.
• Inflation rate: the percentage increase in the general price level of goods and services over a period of time.
• Inflation target: a specific rate of inflation that a central bank aims to achieve through its monetary policy.
• Inflation targeting: a monetary policy framework in which a central bank sets an explicit target for the inflation rate and uses monetary policy tools to achieve that target.
• Inflation targeting: a monetary policy strategy in which a central bank sets an explicit inflation target and uses various tools, such as interest rates, to achieve that target.
• Inflation: a sustained increase in the general price level of goods and services in an economy over a period of time.
• Inflation: the rate at which the general level of prices for goods and services is rising and subsequently purchasing power is falling.
• Infrastructure: the basic physical and organizational structures and facilities, such as roads, bridges, ports, and power plants, that are necessary for an economy to function.
• Initial Coin Offering (ICO): a form of fundraising in which a company or organization issues a new digital coin or token in exchange for cryptocurrency or fiat currency.
• Innovation: the process of introducing new ideas, products, or methods of production.
• Insider trading: the illegal practice of trading securities based on non-public information.
• Instant payments: a type of digital payment that allows money to be transferred and received in real-time.
• Instrumental variables: a variable that is used to identify a causal relationship between two variables, by holding constant the influence of other variables that might be affecting both of them.
• Insurance: a contract in which an insurer agrees to pay a specified amount in the event of a specified loss, in exchange for a premium.
• Intellectual property rights: legal rights that protect the creators of original works, such as patents for inventions, trademarks for brand names, and copyrights for literary and artistic works.
• Intellectual property: legal rights that protect the creations of the mind, such as patents, trademarks, and copyrights.
• Interest rate swap (IRS): a type of derivative in which two parties agree to exchange periodic interest payments on a specified principal amount.
• Interest rate swap: an agreement between two parties to exchange a series of future interest payments.
• Interest rate: the cost of borrowing money, typically expressed as a percentage of the loan amount.
• Interest rate: the rate at which a borrower can borrow money from a lender.
• Interest rate: the rate at which a lender charges a borrower for the use of money.
• Interest rate: the rate at which interest is paid by borrowers (debtors) for the use of money that they borrow from lenders (creditors).
• Interest rate: the rate at which money can be borrowed or lent, typically measured as an annual percentage.
• International finance: the study of financial markets and institutions that facilitate international trade and investment.
• International Monetary Fund (IMF): an international organization that works to promote international monetary cooperation, facilitate the balanced growth of international trade, and provide resources to help countries deal with balance of payments problems.
• International Monetary Fund (IMF): an organization that provides financial assistance to countries with balance of payments problems.
• International trade: the exchange of goods and services between countries.
• Investment banking: the practice of providing financial services to corporations, governments, and other institutions, such as underwriting and issuing securities, providing financial advice, and facilitating mergers and acquisitions.
• Investment demand: the amount of investment spending in an economy, as determined by the level of interest rates and the level of economic activity.
• Investment tax credit: a tax credit offered by the government to encourage investment in certain types of assets, such as machinery and equipment.
• Investment: the purchase of goods that are not consumed today but are used in the future to create wealth, such as factories, machinery, and buildings.
• Know Your Customer (KYC): the practice of identifying and verifying the identity of customers in order to prevent fraud and money laundering.
• Labor force participation rate: the percentage of the total population that is either employed or unemployed but actively seeking employment.
• Labor force participation rate: the percentage of the working-age population that is either employed or unemployed and actively seeking employment.
• Labor force: the total number of people who are available and willing to work.
• Labor market: the market in which workers are hired and wages are determined.
• Labor union: an organization that represents the interests of workers in a particular industry or occupation.
• Labor: the human effort that is used to produce goods and services.
• Lagging indicators: economic indicators that tend to change after the economy as a whole changes, used to confirm past economic activity.
• Laissez-faire: an economic system in which the government does not intervene in the economy, allowing market forces to operate freely.
• Law of demand: the principle that, other things being equal, as the price of a good or service increases, the quantity demanded of that good or service will decrease.
• Law of supply: the principle that, other things being equal, as the price of a good or service increases, the quantity supplied of that good or service will also increase.
• Leading indicators: economic indicators that tend to change before the economy as a whole changes, used to predict future economic activity.
• Leverage: the use of borrowed funds to increase the potential return of an investment.
• Leverage: the use of borrowed money to increase the potential return of an investment.
• Leverage: the use of debt to increase the potential return on an investment.
• Life insurance: a type of insurance that pays a specified amount to the beneficiaries in the event of the insured’s death.
• Liquidity risk: the risk that an asset or security cannot be sold quickly enough to prevent a loss.
• Liquidity: the ease with which an asset can be bought or sold in the market without affecting the price.
• Liquidity: the ease with which an asset can be converted into cash without a significant loss in value.
• Loss aversion: the tendency for people to prefer avoiding losses to acquiring equivalent gains.
• M1: a measure of the money supply that includes cash and checking deposits.
• M2: a measure of the money supply that includes M1 and other deposits, such as savings deposits and money market securities.
• Macroeconomics: the branch of economics that studies the economy as a whole and the factors that influence the overall level of economic activity.
• Margin call: a demand for an investor to deposit additional funds in order to maintain a leveraged position.
• Margin: the amount of money that an investor borrows to buy securities.
• Margin: the amount of money that an investor must deposit in order to open or maintain a leveraged position.
• Marginal cost: the cost of producing one additional unit of output.
• Marginal revenue: the revenue from selling one additional unit of output.
• Marginal utility: the additional satisfaction or benefit that a consumer derives from consuming one more unit of a good or service.
• Market economy: an economic system in which the prices of goods and services are determined by supply and demand in the marketplace.
• Market equilibrium: a situation in which the quantity of a good demanded by consumers is equal to the quantity supplied by producers, resulting in a stable price for the good.
• Market equilibrium: a situation in which the quantity supplied of a good or service equals the quantity demanded of that good or service, resulting in a stable price.
• Market failure: a situation in which a market is not able to allocate resources efficiently.
• Market failure: a situation in which the market does not allocate resources efficiently due to the presence of externalities, public goods, or common resources.
• Market failure: a situation in which the market does not allocate resources efficiently.
• Market failure: a situation in which the market system does not allocate resources efficiently.
• Market integrity: the practice of ensuring fair and transparent markets by setting rules and guidelines for market participants and enforcing those rules through monitoring and surveillance.
• Market power: the ability of a firm to influence the price of a good or service.
• Market risk: the risk that the value of an investment will decrease due to changes in the overall market.
• Market structure: the characteristics of a market, including the number and size of firms, the ease of entry and exit, and the degree of competition.
• Market structure: the characteristics of a market, such as the number of firms, the nature of the products they produce, and the ease of entry and exit for new firms.
• Market structure: the way in which a market is organized and the characteristics of the firms that operate in it.
• Mergers and acquisitions: the process of acquiring or merging with another company in order to grow and diversify a business.
• Microeconomics: the branch of economics that studies the behavior and decisions of individual consumers and firms and how they interact in specific markets.
• Microfinance: the practice of providing financial services, such as loans, savings, and insurance, to individuals and small businesses in developing countries who lack access to traditional banking services.
• Minimum wage: the lowest legal wage that an employer can pay to an employee.
• Mobile payments: the use of mobile devices, such as smartphones or tablets, to make financial transactions.
• Mobile point-of-sale (mPOS): a mobile device that can be used to process card payments, typically used by small businesses and merchants.
• Modern Portfolio Theory (MPT): a theoretical framework that explains the relationship between risk and return, and shows how diversification can help to optimize a portfolio’s expected return for a given level of risk.
• Monetary base: the total amount of money in circulation, including cash and reserves held by banks.
• Monetary policy: the actions taken by a central bank to control the money supply and interest rates in an economy.
• Monetary policy: the actions taken by a central bank, such as the Federal Reserve in the United States, to control the money supply and interest rates in an effort to stabilize the economy.
• Monetary policy: the use of interest rates and money supply to influence the economy.
• Monetary policy: the use of interest rates and the money supply to influence the economy.
• Monetary policy: the use of interest rates, money supply, and other tools to influence the economy.
• Monetary union: a group of countries that have agreed to use a common currency and coordinate their monetary policies.
• Money market: a market for short-term investment, where securities such as Treasury bills, commercial paper, and certificates of deposit are bought and sold.
• Money supply: the total amount of money available in an economy, including cash, checking deposits, and other types of deposits.
• Money supply: the total amount of money in circulation in an economy.
• Monopolistic competition: a market structure characterized by a large number of firms, differentiated products, and easy entry and exit.
• Monopolistic competition: a market structure characterized by many firms that produce similar but differentiated products, and have some control over price.
• Monopoly: a market structure characterized by a single firm that produces all of the output in a market and faces no close substitutes.
• Monopoly: a market structure characterized by a single firm with no close substitutes for its product.
• Monopoly: a market structure in which there is only one supplier of a good or service.
• Monopsony: a market structure characterized by a single buyer for a product or service.
• more of their income.
• Multinational Corporation (MNC): a company that operates in multiple countries.
• Municipal bond: a debt security issued by a state, city, or county to finance public projects or services.
• Mutual fund: a type of investment vehicle that pools money from many investors and invests the money in a diversified portfolio of securities.
• Mutual fund: an investment vehicle that pools together money from multiple investors to buy a diversified portfolio of stocks, bonds, or other securities.
• Mutual funds: investment funds that pool money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities.
• Nash equilibrium: a solution concept in game theory, where each player’s strategy is the best response to the strategies of the other players.
• National debt: the total amount of money that a government owes to its creditors.
• National Income: the total value of all the income earned by a country’s residents, including wages, rent, profits, and interest.
• National income: the total value of goods and services produced by a country in a given period of time, typically one year.
• Natural Monopoly: a situation in which a single firm can produce output at a lower cost than any potential competitor.
• Natural rate of unemployment: the rate of unemployment that is consistent with full employment in the long-run.
• Natural resources: resources provided by nature, such as land, minerals, and water.
• Negative externality: the negative effect of an economic transaction that is experienced by a third party not directly involved in the transaction.
• Net domestic product (NDP): GDP minus depreciation of capital goods.
• Net investment: gross investment minus depreciation of capital goods.
• Net national product (NNP): GNP minus depreciation of capital goods.
• Neutral tax: a tax system in which the tax rate remains constant as the amount subject to taxation increases.
• Nominal GDP: a measure of GDP not adjusted for inflation.
• Nominal GDP: GDP not adjusted for changes in prices, used to measure the value of output in current prices.
• Nominal GDP: GDP not adjusted for inflation.
• Non-cooperative game: a game in which players cannot make binding agreements and must rely on their strategies to influence the outcome.
• Non-Fungible Token (NFT): a unique digital asset that cannot be replicated or replaced, stored on a blockchain, and used to represent ownership or proof of authenticity for digital or physical assets.
• Normative economics: the study of economic policy and the making of value judgments about economic fairness or efficiency.
• Nudge: a subtle change in the environment that encourages a certain behavior without directly forcing it.
• Offshoring: the practice of moving business operations to a foreign country.
• Oligopoly: a market structure characterized by a small number of large firms that dominate the market and have some control over price.
• Oligopoly: a market structure characterized by a small number of large firms, interdependent decision-making, and barriers to entry.
• Oligopoly: a market structure in which there are only a few suppliers of a good or service.
• Oligopsony: a market structure characterized by a small number of buyers for a product or service.
• Open banking: the practice of allowing third-party providers to access bank customers’ transaction data and account information with their consent.
• Open market operations: the buying and selling of government securities by the central bank to influence the money supply and interest rates.
• Open market operations: the buying or selling of government securities by a central bank to influence the money supply and interest rates.
• Opportunity cost: the cost of an alternative that must be forgone in order to pursue a certain action.
• Opportunity cost: the next best alternative that must be given up in order to pursue a certain action or decision.
• Option: a type of derivative that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a specified date.
• Options: a financial contract that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a specified date.
• Options: a type of derivative contract that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specific price on or before a specific date.
• Other terms and concepts related to financial regulation include:
• Outsourcing: the practice of contracting with an outside company or individual to perform a business function.
• Panel data: data that consists of multiple observations for the same individuals or units over time.
• Payment card: a type of card that enables its holder to make payments by electronic funds transfer and access automated teller machines (ATMs).
• Payment gateways: an e-commerce application service provider service that authorizes payments for online businesses and merchants.
• Payment processors: a company that handles the electronic transfer of funds between banks and merchants for e-commerce transactions.
• Payment service provider (PSP): a company that provides businesses and merchants with the ability to accept electronic payments, such as credit and debit cards, online bank transfers, and mobile payments.
• Payment systems: electronic systems that facilitate the transfer of funds between parties.
• Peak: the highest point of an expansionary phase of the business cycle, when economic activity is at its highest level.
• Peak: the highest point of an expansionary phase of the business cycle.
• Pension: a retirement savings plan that provides a steady income after retirement.
• Pensions: retirement savings plans that provide a steady income after retirement.
• Perfect competition: a market structure characterized by a large number of small firms, homogeneous products, and easy entry and exit.
• Perfect competition: a market structure characterized by a large number of small firms, homogeneous products, no barriers to entry or exit, and perfect information.
• Perfect competition: a market structure in which there are many small firms, all producing identical products, and no barriers to entry or exit.
• Personal Income: the total income received by individuals in a given period of time, including wages, salaries, and investment income.
• Physical capital: the stock of equipment and structures used to produce goods and services.
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• Portfolio diversification: the practice of spreading investments among a variety of different securities or assets in order to reduce risk.
• Portfolio investment: investment in foreign stocks, bonds, and other financial assets that do not result in a controlling stake in a foreign company.
• Positive economics: the study of economic facts and cause-and-effect relationships, as opposed to value judgments.
• Positive externality: the positive effect of an economic transaction that is experienced by a third party not directly involved in the transaction.
• Positive-sum game: a game in which all players can benefit, i.e the sum of benefits is greater than zero.
• Poverty: the state of not having enough income or resources to meet basic needs for survival, such as food, housing, and healthcare.
• Price ceiling: a government-imposed maximum price for a good or service.
• Price discrimination: the practice of charging different prices to different customers for the same product or service.
• Price Discrimination: the practice of charging different prices to different groups of consumers for the same good or service.
• Price elasticity of demand: a measure of how responsive quantity demanded is to a change in price, calculated as the percentage change in quantity demanded divided by the percentage change in price.
• Price elasticity of supply: a measure of how responsive quantity supplied is to a change in price, calculated as the percentage change in quantity supplied divided by the percentage change in price.
• Price floor: a government-imposed minimum price for a good or service.
• Prisoner’s dilemma: a situation in game theory where two players have the option to cooperate or defect, and the outcome depends on the combination of their choices.
• Private equity: investment in non-publicly traded companies, typically with the goal of turning around or growing the business and then selling it for a profit.
• Private equity: the practice of investing in private companies, typically with the goal of growing the company and eventually selling it for a profit.
• Private pension: a pension plan that is funded by an employer and provided to private sector employees.
• Producer price index (PPI): a measure of the average change in prices of a basket of goods and services produced by firms.
• Producer price index (PPI): a measure of the average change in prices of a basket of goods and services produced by manufacturers.
• Producer Price Index (PPI): a measure of the average change in prices of goods and services produced by manufacturers.
• Producer price index (PPI): a measure of the average change in prices over time of a basket of goods and services produced by businesses.
• Producer Price Index (PPI): a measure of the average change in prices over time of a basket of goods and services produced by manufacturers.
• Producer price index (PPI): a measure of the average change over time in the prices received by domestic producers for their output.
• Producer Price Index (PPI): a measure of the average price level of a basket of goods and services at the wholesale or producer level.
• Production function: a relationship between inputs (such as labor and capital) and output (such as goods and services).
• Productivity: a measure of the efficiency of an economy in producing goods and services, often measured as output per unit of input (such as output per hour of labor).
• Productivity: a measure of the efficiency of an economy, typically measured as output per unit of input.
• Productivity: the amount of output per unit of input, often measured as output per worker or output per hour worked.
• Productivity: the ratio of output to inputs in the production process.
• Progressive tax: a tax system in which the tax rate increases as the amount subject to taxation increases.
• Progressive tax: a tax system in which the tax rate increases as the income of the taxpayer increases.
• Property and casualty insurance: a type of insurance that covers losses to property and legal liability for injuries or damage caused by the policyholder.
• Prospect theory: a theory that describes how people value potential gains and losses differently.
• Protectionism: economic policies and actions taken by governments to restrict or limit international trade.
• Protectionism: government policies that restrict international trade, such as tariffs and quotas.
• Protectionism: the policy of protecting domestic industries from foreign competition through tariffs, quotas, and other trade barriers.
• Protectionism: the use of tariffs, quotas, and other trade barriers to protect domestic industries from foreign competition.
• Public choice theory: the study of how individuals and groups make decisions in the context of political and economic institutions.
• Public economics: the study of the role of government in the economy and the effects of government policies on economic activity and welfare.
• Public finance: the study of the role of government in the economy, including government revenues and expenditures, as well as their impact on the economy and society.
• Public goods: goods and services that are provided by the government and consumed collectively, such as national defense, public education, and infrastructure.
• Public goods: goods or services that are non-excludable and non-rivalrous, meaning that they can be consumed by multiple people at the same time without reducing the availability of the good or service for others.
• Public goods: goods or services that are non-excludable and non-rivalrous, meaning that they cannot be withheld from those who do not pay for them and one person’s consumption does not reduce the amount available to others.
• Public goods: goods that are non-excludable and non-rival in consumption, meaning that once provided, it is difficult or impossible to prevent people from using them, and one person’s use of the good does not prevent others from using it.
• Public pension: a pension plan that is funded by government and provided to public sector employees.
• Public services: services that are provided by the government, such as healthcare, social security, and law enforcement.
• Purchasing Power Parity (PPP): a method of comparing living standards between countries by adjusting for price differences between countries.
• Purchasing Power Parity (PPP): a method of comparing the purchasing power of different currencies by comparing how much of a certain good or service a given amount of money can buy in different countries.
• Quantitative easing (QE): a monetary policy in which a central bank purchases government bonds or other securities from banks in order to increase the money supply and lower interest rates.
• Quantitative easing (QE): a monetary policy strategy in which a central bank buys government bonds or other securities in order to increase the money supply and stimulate economic activity.
• Quantitative easing: a monetary policy in which a central bank buys government securities or other financial assets to increase the money supply and lower interest rates.
• Quantitative easing: a monetary policy in which a central bank purchases government bonds and other financial assets to increase the money supply and lower interest rates.
• Quantitative easing: a monetary policy used by central banks to increase the money supply by buying government bonds or other financial assets.
• Quota: a limit on the quantity of a good that can be imported.
• Quota: a limit on the quantity of a specific good that can be imported.
• Quotas: limits on the quantity of a good that can be imported.
• Real assets: tangible assets such as real estate, infrastructure, and commodities.
• Real Estate Investment Trust (REIT): a type of security that allows individuals to invest in a portfolio of real estate properties, similar to the way they can invest in a stock or bond portfolio.
• Real estate: property consisting of land or buildings.
• Real GDP: a measure of GDP adjusted for inflation.
• Real GDP: GDP adjusted for changes in prices, used to measure economic growth.
• Real GDP: GDP adjusted for inflation, used to measure changes in the economy’s production of goods and services over time.
• Real GDP: GDP adjusted for inflation.
• Real vs Nominal value: Real value is the value of a good or service adjusted for inflation, while nominal value is the value of a good or service in current dollars.
• Real-Time Gross Settlement (RTGS): a system for the instant transfer of funds between banks, where the transfer of money takes place on a “real-time” and “gross” basis.
• Recession: a period of economic contraction, usually defined as two consecutive quarters of negative economic growth as measured by GDP.
• Recessions: a period of economic decline, typically characterized by a decrease in GDP and employment.
• Regional trade agreements: agreements between countries in a particular region to reduce trade barriers and increase trade between them.
• Regional trade agreements: agreements between countries in a region to reduce trade barriers and increase economic integration.
• Regression analysis: a statistical method used to model the relationship between a dependent variable and one or more independent variables.
• Regressive tax: a tax system in which the tax rate decreases as the amount subject to taxation increases.
• Regressive tax: a tax system in which the tax rate decreases as the income of the taxpayer increases.
• Regtech: the use of technology to automate and streamline the compliance process and to improve the efficiency and effectiveness of regulatory oversight.
• Relative poverty: poverty defined in terms of the income or resources of others in a society, such as the percentage of the population living below a certain income threshold.
• Rent control: a price ceiling placed on rents for apartments or other rental properties.
• Rent seeking: the use of resources to gain economic rent (unearned income) rather than to produce goods and services.
• Reserve requirement: the percentage of deposits that banks are required to hold as reserves.
• Reserve requirement: the percentage of deposits that banks must hold in reserve, either as cash or on deposit with the central bank.
• Residential mortgage-backed security (RMBS): a type of security that is backed by a pool of mortgages on residential properties.
• Resource allocation: the distribution of resources among different uses.
• Responsible investing: a broad term that encompasses a variety of investment approaches that take into account environmental, social, and governance (ESG) factors in order to achieve positive impact and long-term returns.
• Risk management: the process of identifying, assessing, and prioritizing risks and developing strategies to manage or mitigate them.
• Risk: the likelihood that an investment will lose value or fail to meet expectations.
• Risk-return trade-off: the relationship between the level of risk and the potential return of an investment. Generally, investments with higher potential returns are associated with higher levels of risk.
• Robo-adviser: an online platform that uses algorithms to provide financial advice and manage investments.
• Ronald Legarski Economist: Economical Librarian and General Electrician at SolveForce.
• Roth IRA: a type of individual retirement account (IRA) that allows individuals to make contributions with after-tax dollars and withdraw the money tax-free after retirement.
• Sales tax: a tax imposed on the sale of goods and services.
• Saving rate: the percentage of disposable income that is saved.
• Scarcity: the condition in which resources are limited and can’t meet all human wants and needs.
• Securities: financial instruments, such as stocks and bonds, that can be bought and sold.
• Securitization: the process of pooling assets, such as loans, and issuing securities that are backed by those assets, which are then sold to investors.
• Security Token Offering (STO): a type of ICO in which the token issued represents ownership in a company, asset, or fund.
• Short selling: the practice of borrowing shares of a stock and selling them, with the expectation that the price will fall, allowing the shares to be repurchased at a lower price and returned to the lender.
• Smart contract: a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code.
• Social capital: the networks and norms of trust and cooperation that facilitate coordination and cooperation among individuals and groups.
• Social mobility: the ability of individuals or households to move up or down the income or wealth ladder over time.
• Social payments: the use of social media platforms to facilitate money transfers between individuals.
• Social preferences: the tendency for people to take into account the well-being of others when making decisions.
• Social security: a government-provided retirement savings plan that provides a steady income after retirement.
• Social welfare function: a function that describes a society’s preferences over different distributions of income.
• Socially Responsible Investing (SRI): an investment strategy that incorporates social and environmental considerations in addition to financial considerations when making investment decisions.
• Sovereign bond: debt securities issued by a national government.
• Specialization: the concentration of resources and effort in a particular industry or sector.
• Speculation: the practice of investing in an asset with the expectation of making a profit from price changes, rather than from receiving dividends or interest.
• Stablecoin: a type of cryptocurrency that is pegged to the value of a fiat currency or other asset in order to reduce volatility.
• Stagflation: a combination of inflation and stagnant economic growth, high unemployment and high inflation.
• Stagflation: a combination of stagnant economic growth and high inflation.
• Stagflation: a situation in which the economy is experiencing both high inflation and high unemployment.
• Stimulus: a fiscal policy that emphasizes increasing government spending and decreasing taxes to boost economic growth.
• Stock market is a market where shares of publicly traded companies are bought and sold. Stock is a unit of ownership in a company. Bond market is a market where bonds issued by governments and companies are bought and sold. Bond is a debt security, in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period of time at a fixed interest rate. Mutual fund is an investment vehicle that pools together money from multiple investors to buy a diversified portfolio of stocks, bonds, or other securities. ETF (Exchange-Traded Fund) is a type of investment fund that is traded on stock exchanges, similar to stocks. Hedge fund is an investment fund that uses a range of strategies, such as leveraged and short positions, to generate high returns. Derivatives are financial contracts whose value is derived from an underlying asset, such as a stock, commodity, or currency. Leverage is the use of borrowed money to increase the potential return of an investment. Margin is the amount of money that an investor borrows to buy securities. These concepts are widely used to understand and analyze the performance and dynamics of financial markets and the different types of investment vehicles and strategies that are available to investors. Stock market, bond market, mutual fund, ETF, hedge fund, derivatives, leverage and margin are used to describe the different ways in which individuals and institutions can invest their money and manage their risk. Stock and bond are the two most common forms of investment, stock represents an ownership stake in a company, while bond represents a debt that the issuer promises to repay with interest. Mutual funds, ETFs, and hedge funds are ways of pooling money together to achieve diversification and gain access to professional management. Derivatives, leverage and margin are tools that are used to enhance returns and manage risk, but they also come with added risks. If you have any specific question or need more detail on any of the terms I listed, I’ll be happy to help.
• Stock market: a market where shares of publicly traded companies are bought and sold.
• Stock market: a market where stocks (shares in the ownership of a company) are bought and sold.
• Stock: a unit of ownership in a company.
• Stress testing: the practice of simulating worst-case scenarios to assess the resilience of financial institutions and the financial system as a whole.
• Structural unemployment: unemployment that arises from a mismatch between the skills of unemployed workers and the requirements of available jobs.
• Subsidies: financial assistance provided by the government to domestic firms or industries.
• Subsidy: a direct payment or tax break given by the government to a firm or individual.
• Supply and demand: the relationship between the quantity of a good that consumers are willing and able to buy and the quantity that producers are willing and able to sell.
• Supply-side economics: an economic theory that argues that economic growth can be most effectively created by lowering barriers for people to produce (supply) goods and services, such as lowering income tax and labor market deregulation.
• Supply-side economics: the theory that economic growth can be most effectively created by investing in capital and by allowing greater flexibility in the use of resources.
• Sustainable development: development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
• Sustainable investing: the practice of incorporating environmental, social, and governance (ESG) factors into investment decisions.
• Swap: a type of derivative in which two parties agree to exchange one set of cash flows for another over a period of time.
• Systemic risk: the risk that the failure of one or more financial institutions will cause a ripple effect throughout the entire financial system.
• Systemically important financial institutions (SIFIs): financial institutions that are considered so large and interconnected that their failure could pose a risk to the stability of the financial system.
• Tariff: a tax imposed on imported goods or services.
• Tariff: a tax imposed on imported goods.
• Tariff: a tax on imported goods.
• Tariffs: taxes imposed on imported goods.
• Tax bracket: a range of income levels to which a certain tax rate applies.
• Tax bracket: a range of income that is subject to a specific tax rate.
• Tax credit: a dollar-for-dollar reduction in the amount of taxes owed.
• Tax credit: a reduction in the amount of taxes that a taxpayer owes, typically based on specific criteria such as income level or type of expenses.
• Tax deduction: a reduction in the amount of income that is subject to taxation, typically based on specific criteria such as income level or type of expenses.
• Tax deduction: an expense that can be subtracted from income before taxes are calculated, thus reducing the amount of taxes owed.
• Tax evasion: the illegal non-payment or underpayment of taxes.
• Tax haven: a country or territory with low tax rates and lax financial regulations, used to minimize taxes and maximize profits.
• Tax loophole: a provision in the tax code that allows taxpayers to reduce their tax liability.
• Tax shelter: an investment or strategy used to reduce or eliminate tax liability.
• Taxable income: the amount of income on which taxes are owed after deductions and credits are applied.
• Taxation system: the set of laws and regulations that govern the imposition, assessment, and collection of taxes.
• Taxation: the process by which a government imposes financial charges on citizens and organizations to raise revenue.
• Taxation: the process of levying and collecting taxes from individuals and businesses by a government.
• Technical analysis: the study of past market data, such as price and volume, to identify patterns and make trading decisions.
• Time preference: the degree to which people prefer to consume goods and services now rather than in the future.
• Time series analysis: a statistical method used to analyze data collected over time to identify trends, patterns, and relationships.
• Token economy: a system in which goods and services are exchanged for tokens, which can be used to purchase other goods and services within the same ecosystem.
• Tokenization: the process of converting ownership of an asset, such as real estate or a work of art, into a digital token that can be traded on a blockchain.
• Total factor productivity (TFP): a measure of the efficiency with which inputs are used to produce output in an economy.
• Trade deficit: when a country imports more goods and services than it exports.
• Trade surplus: when a country exports more goods and services than it imports.
• Trade-off: a situation in which one thing must be given up in order to gain something else.
• Traditional IRA: a type of individual retirement account (IRA) that allows individuals to make contributions with pre-tax dollars and pay taxes on the money when it’s withdrawn after retirement.
• Transparency: the practice of making information about financial transactions and activities easily accessible to the public.
• Treasury bond: a debt security issued by the U.S. Department of the Treasury to finance the federal government’s debt.
• Trough: the lowest point of a contractionary phase of the business cycle, when economic activity is at its lowest level.
• Trough: the lowest point of a contractionary phase of the business cycle.
• Underwriting: the process of assessing the risk of an investment and determining the terms under which it will be offered to the public.
• Unemployment rate: the percentage of the labor force that is unemployed but actively seeking employment.
• Unemployment rate: the percentage of the total labor force that is unemployed but actively seeking employment and willing to work.
• Unemployment: the number of people who are willing and able to work but are unable to find a job.
• Unemployment: the percentage of the labor force that is not currently employed but is actively seeking employment.
• Utility maximization: the principle that consumers will choose to allocate their limited resources among different goods and services in a way that maximizes their total utility.
• Utility: the satisfaction or happiness that a consumer derives from a good or service.
• Value added: the value of a firm’s output minus the value of the inputs it purchased from other firms.
• Value-added tax (VAT): a tax imposed on the value added to a product or service at each stage of production or distribution.
• Venture capital: funding provided to early-stage, high-potential, high-risk, growth startup companies.
• Volatility: the degree to which the price of a security or market index fluctuates over time.
• Volcker rule: a provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 that prohibits banks from engaging in proprietary trading or investing in hedge funds and private equity funds.
• Wealth inequality: the unequal distribution of wealth among individuals or households in a population.
• Wealth management: the practice of managing the financial assets of wealthy individuals or families.
• Wealth: the value of a person’s or society’s assets, including natural resources, financial assets, and human capital.
• World Bank: an international organization that provides financial assistance to developing countries for economic development and poverty reduction.
• World Bank: an international organization that provides loans and other financial assistance to developing countries for economic development projects.
• World Trade Organization (WTO): an international organization that promotes free trade among its member countries.
• World Trade Organization (WTO): an international organization that promotes free trade and mediates trade disputes among its member countries.
• Yield: the return on an investment, typically expressed as a percentage of the price of the security or the current market price.
• Zero-sum game: a game in which one player’s gain is exactly balanced by the losses of the other players.
• Zero-sum game: a situation in which one person’s gain is exactly balanced by the losses of others.

As you can see, there are many terms and concepts used in finance and economics, and this list is not exhaustive. The concepts and terms in finance and economics are very interrelated, and understanding one can help you understand the other. If you have any specific question or need more detail on any of the terms I listed, I’ll be happy to help.