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

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Bank failures and rescues

U.S. financial laws [r]: Laws and enforcement mechanisms of the United States, which deal with banks and financial institutions, primarily focused on domestic activities rather than international economics ^[e]

Glossary

See the economics glossary for definitions not shown on this page

AB

Adverse selection [r]: a partial market failure that occurs when there are traders who take advantage of asymmetric information, raising uncertainty and leading to a reduction in the value of its products. ^[e]
Asset (accountancy) [r]: An accountancy term for possessions that have money value - including, for balance sheet purposes, cash, investments, property and amounts owed by debtors. ^[e]
Asset (finance) [r]: A term used in finance to denote a legal claim on something that has monetary value, such as the acknowledgement of a debt or a share in the ownership of a company. ^[e]
Asymmetric information [r]: a situation in which a seller has information that is not available to potential buyers - or vice-versa. ^[e]
Backwardation [r]: (i) The amount by which the spot price exceeds the forward price, (ii)a fee paid by a seller to defer the delivery of securities. ^[e]
Beta [r]: A measure of the degree to which the rate of return of a share tracks that of the equity market as a whole (defined as the covariance between the share's rate of return and the average market rate, divided by the variance of the market rate). If beta = 1 the share's rate of return moves in line with the market rate; if it is negative, it falls when the market rate rises. ^[e]
Bill (finance) [r]: {a) A loan with a duration of no more than a year (b)a documentary record of short-term indebtedness. ^[e]
Bond (finance) [r]: a fixed-interest security issued by governments, companies, banks and others. ^[e]
Bretton Woods [r]: An international conference held in 1944, which set up a system of fixed exchange rates linked to the US dollar which was to be freely convertible to gold, and created the International Monetary Fund. ^[e]
Broker [r]: Individual or firm that provides investment advise to clients and executes their buying and selling instructions, usually by acting as a market maker. ^[e]
Bubble (economics) [r]: A surge in prices that raises expectations of further increases, so generating further increases: a process that continues until confidence falters, the bubble "bursts" and prices rapidly revert to an objectively-based level. ^[e]

C

Capital adequacy ratio [r]: The ratio of a bank's capital to its risk weighted credit exposures. May be defined in terms of tier 1 (core) or tier 2 capital. ^[e]
Carry trading [r]: the practice of borrowing at a low interest rate in order to invest at a higher interest rate, or of selling the currency of a country that has low interest rates and buying the currency of a country that has high interest rates. ^[e]
CDS [r]: Credit-Default Swap. An insurance agreement that guarantees protection against a bond default in return for a fee. ^[e]
CDS spread [r]: the annual percentage charge for a credit default swap ^[e]
Central Bank [r]: A government agency that is responsible for monetary policy and the support of the banking system (for example the Federal Reserve Board and the Bank of England). Usually responsible for controlling a country's monetary policy and preserving the value of its currency. ^[e]
Central counterparty [r]: An organisation that facilitates the settlement of contracts by acting as the buyer to every seller and as the seller to every buyer. ^[e]
Certificate of deposit [r]: A claim issued by a bank in return for an interest-paying deposit, that can be traded on the interbank market. ^[e]
Closed end fund [r]: An investment company that invests in shares and bonds, and that limits the number of its own shares that it issues - such as an investment trust. ^[e]
Collateral (finance) [r]: An asset, or other property of a borrower, that a creditor is entitled by a loan agreement to receive if the borrower defaults on the terms of the loan. ^[e]
Complex interactive system [r]: A system in which an event in one of its components can have significant repercussions in many other components; and which can exist in more states than can be enumerated - including "open systems" whose operation is affected by events that have been generated from outside (such as international trade in the case of an economic system). ^[e]
Commercial paper [r]: unsecured debt_instruments that are issued by corporations to meet short term financing needs (usually repayable after 3 months). ^[e]
Contracyclical regulation [r]: a policy of raising banks' statutory minimum capital adequacy ratios when asset prices are rising and relaxing them when asset prices are falling. ^[e]
Counterparty [r]: The legal term that is used to refer to each of the organisations or persons that are engaged in a transaction. ^[e]
Covered bond [r]: Add brief definition or description
Credit crunch [r]: Add brief definition or description
Credit risk [r]: Add brief definition or description

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Spread see Yield spread

Financial system/Related Articles

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Index

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Related topics

Glossary

AB

C

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Financial system/Related Articles

Index

Parent articles

Subtopics

Related topics

Glossary

AB

C

DEF

GHIJKL

MNOPQ

RSTUVWXYZ

Navigation menu

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