Money/Related Articles: Difference between revisions

From Citizendium
Jump to navigation Jump to search
imported>Nick Gardner
(New page: {{subpages}} ==Index== See the related articles subpage to the article on economics [http://en.citizendium.org/wiki/Economics/Related_Articles] for an index to topics referred to in the e...)
 
imported>Nick Gardner
Line 1: Line 1:
{{subpages}}
==Index==
See the related articles subpage to the article on economics [http://en.citizendium.org/wiki/Economics/Related_Articles] for an index to topics referred to in the economics articles.
==Parent articles==
[[Economics]]
[[Financial system]]
[[Financial economics]]
==Related topics==
[[Banking]]
[[Money supply]]
== Glossary ==
== Glossary ==



Revision as of 08:24, 30 November 2008

Glossary

  • Bill of Exchange [r]: A written order to pay the holder a stated sum of money at a stated date (otherwise known as a "draft", the person who is paid being termed the "drawer"). [e]
  • Fiat money [r]: money whose value is determined solely by government order, or "fiat" (as distinct from commodity money that has value because of its scarcity or cost of production). [e]
  • Liquidity [r]: (i) The quantity of available assets in its possession that an organisation could rapidly exchange for cash (assets that cannot be exchanged for cash at a particular time are considered to be "illiquid" at that time); (ii) the funding that is unconditionally available to settle claims through monetary authorities (termed "official liquidity"). [e]
  • Liquidity trap [r]: a state of the economy in which an expansionary monetary policy has no effect upon output. [e]
  • Monetary base [r]: currency in circulation plus bank vault cash plus deposits held by banks at the central bank (termed "high-powered money" in the US, and referred to as M0 in the UK). [e]
  • Money market [r]: A market for short-term debt instruments (generally of maturity after less than one year) such as certificates of deposit, commercial paper, and Treasury bills. [e]
  • Open market operation [r]: The buying and selling of government securities in order to influence the level of banking reserves. [e]
  • Reserves (banking) [r]: A bank's holding of deposits at its central bank plus the currency held in its vaults. [e]
  • Reserve ratio [r]: The ratio of a bank's reserves to its deposits, a minimum value of which is set by its central bank with the effect of limiting the proportion of its deposits that the bank is permitted to lend. [e]