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Definition of Disequilibrium
The absence of equilibrium. disequilibrium implies excess demand or excess supply and pressure for change.
An alteration in the accounting methodology or estimates used in
Total quantity of goods and services demanded.
Combinations of the price level and income for which the goods and services market is in equilibrium, or for which both the goods and services market and the money market are in equilibrium.
Total quantity of goods and services supplied.
Combinations of price level and income for which the labor market is in equilibrium. The short-run aggregate supply curve incorporates information and price/wage inflexibilities in the labor market, whereas the long-run aggregate supply curve does not.
The second-largest stock exchange in the United States. It trades
General term for a document demanding payment.
What a company collected when it sold stock for more than the par value per share.
Amounts in excess of the par value or stated value that have been paid by the public to acquire stock in the company; synonymous with additional paid-in capital.
A change in accounting that occurs as the result of new information
A change in the implementation of an existing accounting
A change from one generally accepted accounting principle to another generally accepted accounting principle—for example, a change from capitalizing expenditures
A change in the scope of the entities included in a set of, typically, consolidated financial statements.
Sources of funds internally provided from operations that alter a company's
A not-for-profit corporation owned by its members. Its primary
Commodities Exchange Center (CEC)
The location of five New York futures exchanges: Commodity
Convertible exchangeable preferred stock
Convertible preferred stock that may be exchanged, at the
Cost Plus Estimated Earnings in Excess of Billings
Revenue recognized to date under the percentage-of-completion method in excess of amounts billed. Also known as unbilled accounts
Cumulative Effect of a Change in Accounting Principle
The change in earnings of previous years
Cumulative Effect of Accounting Change
The change in earnings of previous years assuming
An amount desired, in the sense that people are willing and able to pay to obtain this amount. Always associated with a given price.
A bank deposit that can be withdrawn on demand, such as a deposit in a checking account.
Checking accounts that pay no interest and can be withdrawn upon demand.
Demand line of credit
A bank line of credit that enables a customer to borrow on a daily or on-demand basis.
A loan which must be repaid in full on demand.
Demand Management Policy
Fiscal or monetary policy designed to influence aggregate demand for goods and services.
Demand master notes
Short-term securities that are repayable immediately upon the holder's demand.
Inflation whose initial cause is excess demand rather than cost increases. See also cost-push inflation.
An event that affects the demand for goods in services in the economy.
Effective Exchange Rate
The weighted average of several exchange rates, where the weights are determined by the extent of our trade done with each country.
Electronic data interchange (EDI)
The exchange of information electronically, directly from one firm's
electronic data interchange (EDI)
the computer-to-computer transfer of information in virtual real time using standardized formats developed by the American National Standards Institute
Embodied Technical Change
Technical change that can be used only when new capital embodying this technical change is produced.
A change to a product’s specifications as issued by the engineering
engineering change order (ECO)
a business mandate that changes the way in which a product is manufactured or a
Equation of Exchange
The quantity theory equation Mv = PQ.
A position in which there is no pressure for change, where demand and supply are equal.
Equilibrium market price of risk
The slope of the capital market line (CML). Since the CML represents the
Equilibrium rate of interest
The interest rate that clears the market. Also called the market-clearing interest
Unused production capacity.
A situation in which demand exceeds supply.
Any excess of actual reserves above required reserves.
Reserves of commercial banks in excess of those they are legally required to hold.
Excess return on the market portfolio
The difference between the return on the market portfolio and the
Also called abnormal returns, returns in excess of those required by some asset pricing model.
A situation in which supply exceeds demand.
The marketplace in which shares, options and futures on stocks, bonds, commodities and indices
Governmental restrictions on the purchase of foreign currencies by domestic citizens or
Exchange of assets
Acquisition of another company by purchase of its assets in exchange for cash or stock.
Exchange of stock
Acquisition of another company by purchase of its stock in exchange for cash or shares.
An offer by the firm to give one security, such as a bond or preferred stock, in exchange for
The price of one country's currency expressed in another country's currency.
Amount of one currency needed to purchase one unit of another.
Exchange Rate Mechanism (ERM)
The methodology by which members of the EMS maintain their
Exchange Rate, Nominal
The price of one currency in terms of another, in this book defined as number of units of foreign currency per dollar.
Exchange Rate, Real
The nominal exchange rate corrected for price level differences.
Exchange rate risk
Also called currency risk, the risk of an investment's value changing because of currency
The variability of a firm's value that results from unexpected exchange rate changes or the
Security that grants the security holder the right to exchange the security for the
expectations theory of exchange rates
Theory that expected spot exchange rate equals the forward rate.
A country's decision to tie the value of its currency to another country's currency, gold
Fixed Exchange Rate
An exchange rate held constant by a government promise to buy or sell dollars at the fixed rate on the foreign exchange market.
Flexible Exchange Rate
An exchange rate whose value is determined by the forces of supply and demand on the foreign exchange market.
Floating exchange rate
A country's decision to allow its currency value to freely change. The currency is not
Floating Exchange Rate
See flexible exchange rate.
The amount of securities believed to be available for immediate purchase, that is, in the
Currency from another country.
The currency of a foreign country.
Foreign exchange controls
Various forms of controls imposed by a government on the purchase/sale of
Foreign exchange dealer
A firm or individual that buys foreign exchange from one party and then sells it to
Foreign Exchange Market
A worldwide market in which one country's currency is bought or sold in exchange for another country's currency.
Foreign Exchange Reserves
A fund containing the central bank's holdings of foreign currency or claims thereon.
Foreign exchange risk
The risk that a long or short position in a foreign currency might have to be closed out
Foreign exchange swap
An agreement to exchange stipulated amounts of one currency for another currency
Forward Exchange Market
A market in which foreign exchange can be bought or sold for delivery (and payment) at some specified future date but at a price agreed upon now.
Forward exchange rate
Exchange rate fixed today for exchanging currency at some future date.
forward rate of exchange
Exchange rate for a forward transaction.
Gold exchange standard
A system of fixing exchange rates adopted in the Bretton Woods agreement. It
demands for securities to hedge particular sources of consumption risk, beyond the usual
Historical exchange rate
An accounting term that refers to the exchange rate in effect when an asset or
London International Financial Futures Exchange (LIFFE)
A London exchange where Eurodollar futures
London International Financial Futures Exchange (LIFFE)
London exchange where Eurodollar futures as well as futures-style options are traded.
Medium of Exchange
Any item that can be commonly exchanged for goods and services.
Money market demand account
An account that pays interest based on short-term interest rates.
M1-A: Currency plus demand deposits
This is the difference between a day's last trade and the previous day's last trade.
New York Stock Exchange (NYSE)
Also known as the Big Board or The Exhange. More than 2,00 common
Nominal exchange rate
The actual foreign exchange quotation in contrast to the real exchange rate that has
A securities marketplace wherein purchasers and sellers regularly gather to trade
Philadelphia Stock Exchange (PHLX)
A securities exchange where American and European foreign
Precautionary demand (for money)
The need to meet unexpected or extraordinary contingencies with a
Raw material supply agreement
As used in connection with project financing, an agreement to furnish a
Real Exchange Rate
Exchange rate adjusted for relative price levels.
Real exchange rates
Exchange rates that have been adjusted for the inflation differential between two countries.
Real Money Supply
Money supply expressed in base-year dollars, calculated by dividing the money supply by a price index.
Realizable Revenue A revenue transaction where assets received in exchange for goods and
services are readily convertible into known amounts of cash or claims to cash.
Rho - The rate of change in a derivative’s price relative to the underlying
security’s risk-free interest rate.
Securities and Exchange Commission (SEC)
The federal agency that
Securities and Exchange Commission (SEC)
Federal agency responsible for regulation of securities markets in the United
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