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University of Michigan
Industry: Education
Number of terms: 31274
Number of blossaries: 0
Company Profile:
1. The rate, per year, at which future values are diminished to make them comparable to values in the present. Can be either subjective (reflecting personal time preference) or objective (a market interest rate). 2. The interest rate that the Fed charges commercial banks for very short-term loans of reserves. One of the tools of monetary policy.
Industry:Economy
A rise in the value of a country's currency on the exchange market, relative either to a particular other currency or to a weighted average of other currencies. The currency is said to appreciate. Opposite of "depreciation. "
Industry:Economy
A higher tariff against one source of imports than against another. Except in special circumstances, such as anti-dumping duties, this is a violation of MFN and is prohibited by the WTO against other members.
Industry:Economy
A combination of transactions designed to profit from an existing discrepancy among prices, exchange rates, and/or interest rates on different markets without risk of these changing. Simplest is simultaneous purchase and sale of the same thing in different markets, but more complex forms include triangular arbitrage and covered interest arbitrage.
Industry:Economy
1. Inequality of supply and demand. 2. An untenable state of an economic system, from which it may be expected to change.
Industry:Economy
A reason given (not necessarily a good one) for restricting imports by tariffs and/or NTBs.
Industry:Economy
1. To allow a stock of capital to become smaller over time, either by selling parts of it or by allowing it to depreciate without replacing it. 2. To reduce inventories, either absolutely or by more than any increase in plant and equipment. 3. To sell all or a portion of a portfolio of financial assets.
Industry:Economy
1. The productive activity of getting produced goods from the factory into the hands of consumers. 2. The amounts of income or wealth in the hands of different portions of a population.
Industry:Economy
A free trade area announced in 1992 among the ASEAN countries that is in the process of being implemented. It does not quite meet the the normal definition of an FTA, however, in that tariffs on imports from members are not necessarily zero, but rather given by the common effective preferential tariff.
Industry:Economy
A portfolio that includes a variety of assets whose prices are not likely all to change together. In international economics, this usually means holding assets denominated in different currencies.
Industry:Economy