From Banking to Economics Flashcards
“Credit crunch”
a massive reduction in the amount of credit available for banks to lend to other banks, businesses and households
Credit rating?
estimates of people’s ability to fulfill their financial commitments
A slush fund?
Money set aside for dishonest use
Purchasing power parity (PPP)
How much you can buy for the same amount in different country
Autarky?
Impossible situation where a country is self-sufficient has no foreign trade
Balance of trade?
Balance of payments?
BOT - The difference between what a country receives and pays for importing and exporting goods
BOP - statement of all of transactions made between a country and the rest of the world during a given year
Tax avoidance vs tax evasion
Avoidance - legal way of minimizing taxes
Evasion - illegal way of minimizing taxes
Options (in stocks and shares)
Call option
Put option
Giving the right to buy and sell securities at a fixed price in the future.
Call - Gives you the right to buy securities at a certain price during a certain period of time
Put - Gives you the right to sell securities…
Standing order (in banking)
an instruction to a bank to pay fixed sums of money to certain people or organizations at stated times
Break-even point
Total costs=total income from sales. Company makes neither profit or loss
Bull market?
Bear market?
Bull - A period during which most of stocks are rising in value
Bear - …most stocks fall in value
Speculation?
To hedge?
Buying assets in the hope of making a capital gain by selling them later at a higher price.
To hedge - to attempt to protect oneself against future price changes
Leveraged buyout?
Buying a company with borrowed money.
Natural monopoly?
A market in which it is normal to have only one supplier (e.g utilities such as water, sewage, electricity)
Equilibrium?
State of balance, e.g when supply is the same as demand
