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Definition of Fiat
money Nonconvertible paper money.
fiat Money is paper currency made legal tender by law or fiat. It is not backed by gold or silver and is not necessarily redeemable in coin. This practice has had widespread use for about the last 70 years. If governments produce too much of it, there is a loss of confidence. Even so, governments print it routinely when they need it. The value of fiat money is dependent upon the performance of the economy of the country which issued it. Canada's currency falls into this category.
Any item that serves as a medium of exchange, a store of value, and a unit of account. See medium of exchange.
An option is at-the-money if the strike price of the option is equal to the market price of the
Also called the broker loan rate , the interest rate that banks charge brokers to finance
See money base.
money that moves across country borders in response to interest rate differences and that moves
A put option that has a strike price higher than the underlying futures price, or a call option
Composed of currency and coins outside the banking system plus liabilities to the deposit money banks.
Cash plus deposits of the commercial banks with the central bank.
Banks that raise most of their funds from the domestic and international money markets, relying less on depositors for funds.
This is the process by which "dirty money" generated by criminal activities is converted through legitimate businesses into assets that cannot be easily traced back to their illegal origins.
Related: Investment management.
Related: Investment manager.
money markets are for borrowing and lending money for three years or less. The securities in
A market that specializes in trading short-term, low-risk, very liquid
Market for short-term financial assets.
A financial market in which short-term (maturity of less than a year) debt instruments such as bonds are traded.
Financial market in which funds are borrowed or lent for short periods. (The money market is distinguished from the capital market, which is the market for long term funds.)
Money market demand account
An account that pays interest based on short-term interest rates.
Money market fund
A mutual fund that invests only in short term securities, such as bankers' acceptances,
money market fund
A type of mutual fund that invests primarily in short-term debt securities maturing in one year or less. These include treasury bills, bankers’ acceptances, commercial paper, discount notes and guaranteed investment certficates.
Money market hedge
The use of borrowing and lending transactions in foreign currencies to lock in the
Money market notes
Publicly traded issues that may be collateralized by mortgages and MBSs.
Change in the money supply per change in the money base.
A guaranteed form of payment in amounts up to and including $5,000. You might request a money order in order to pay for tuition fees at a university or a college, or for a magazine subscription.
Money purchase plan
A defined benefit contribution plan in which the participant contributes some part and
Money Rate of Interest
See interest rate, nominal.
Money rate of return
Annual money return as a percentage of asset value.
M1-A: Currency plus demand deposits
Neutrality of Money
The doctrine that the money supply affects only the price level, with no long-run impact on real variables.
In a Treasury auction, the amount by which the par value of the securities offered exceeds that of
A call option is out-of-the-money if the strike price is greater than the market price
Precautionary demand (for money)
The need to meet unexpected or extraordinary contingencies with a
Sale of bonds by the government to the central bank.
Quantity Theory of Money
Theory that velocity is constant, and so a change in money supply will change nominal income by the same percentage. Formalized by the equation Mv = PQ.
Real Money Supply
money supply expressed in base-year dollars, calculated by dividing the money supply by a price index.
Speculative demand (for money)
The need for cash to take advantage of investment opportunities that may arise.
Time value of money
The idea that a dollar today is worth more than a dollar in the future, because the dollar
Transaction demand (for money)
The need to accommodate a firm's expected cash transactions.
A monetary policy of matching wage and price increases with money supply increases so that the real money supply does not fall and push the economy into recession.
money owed to suppliers.
money owed by customers.
money owed to a business for merchandise or services sold on open account.
An amount of money invested plus the interest earned on that money.
After-tax real rate of return
money after-tax rate of return minus the inflation rate.
Aggregate Demand Curve
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.
A contract which provides an income for a specified period of time, such as a certain number of years or for life. An annuity is like a life insurance policy in reverse. The purchaser gives the life insurance company a lump sum of money and the life insurance company pays the purchaser a regular income, usually monthly.
Automatic Benefits Payment
Automatic payment of moneys derived from a benefit.
In the words of Warren Buffet, Bill Bane Sr., is, "a great American and one of the last real traders
money in a bank cheque account, the difference between receipts and payments.
money owed to the bank in a cheque account where payments exceed receipts.
A short-term credit investment created by a non-financial firm and guaranteed by a
BARRA's performance analysis (PERFAN)
A method developed by BARRA, a consulting firm in
A system of exchange in which one good is traded directly for another without the use of money.
This is the person who benefits from the terms of a trust, a will, an RRSP, a RRIF, a LIF, an annuity or a life insurance policy. In relation to RRSP's, RRIF's, LIF's, Annuities and of course life insurance, if the beneficiary is a spouse, parent, offspring or grand-child, they are considered to be a preferred beneficiary. If the insured has named a preferred beneficiary, the death benefit is invariably protected from creditors. There have been some court challenges of this right of protection but so far they have been unsuccessful. See "Creditor Protection" below. A beneficiary under the age of 18 must be represented by an individual guardian over the age of 18 or a public official who represents minors generally. A policy owner may, in the designation of a beneficiary, appoint someone to act as trustee for a minor. Death benefits are not subject to income taxes. If you make your beneficiary your estate, the death benefit will be included in your assets for probate. Probate filing fees are currently $14 per thousand of estate value in British Columbia and $15 per thousand of estate value in Ontario.
Bonds are debt and are issued for a period of more than one year. The U.S. government, local
A long-term, interest-bearing promissory note that companies may use to borrow money for periods of time such as five, ten, or twenty years.
A long-term debt instrument in which the issuer (borrower) is
The amount of money invested in inventory, as per a company’s
To obtain or receive money on loan with the promise or understanding that it will be repaid.
Borrower (Credit Insurance)
A consumer who borrows money from a lender.
Broker loan rate
Related: Call money rate.
A spread strategy in which an investor buys an out-of-the-money put option, financing it by
Business Expansion Investment
The use of capital to create more money through the addition of fixed assets or through income producing vehicles.
A financial analyst employed by a non-brokerage firm, typically one of the larger money
Purchase of a controlling interest (or percent of shares) of a company's stock. A leveraged buy-out is
money invested in a firm.
The money, raised by selling stock or bonds or taking out loans, that you use to start, operate, and grow a business.
A very broad term rooted in economic theory and referring to
money used to purchase fixed assets for a business, such as land, buildings, or machinery. Also, money invested in a business on the understanding that it will be used to purchase permanent assets rather than to cover day-to-day operating expenses.
Currency, coin, and funds on deposit that are available for immediate withdrawal without
Cash Flow Forecast
An estimate of the timing and amount of a company's inflows and outflows of money measured over a specific period of time typically monthly for one to two years then annually for an additional one to three years.
Cash management bill
Very short maturity bills that the Treasury occasionally sells because its cash
Cash Surrender Value
Benefit that entitles a policy owner to an amount of money upon cancellation of a policy.
A public agency responsible for regulating and controlling an economy's monetary and financial institutions. It is the sole money-issuing authority.
Certificate of deposit (CD)
Also called a time deposit, this is a certificate issued by a bank or thrift that
A reduction in the likelihood one or more of the firm's claimants will be fully repaid,
Decreasing inflation by immediately decreasing the money growth rate to a new, low rate. Contrast with gradualism.
Assets acquired to create money. May include plant, machinery and equipment, shares of another company etc.
The collection of money managers of similar investment style used for assessing
The process of accumulating the time value of money forward in time. For example, interest
An arrangement in which the money manager pursues an active bond portfolio
The process of accumulating the time value of money forward in time on a
the practice of finding acceptable alternatives
Cost of funds
Interest rate associated with borrowing money.
A put option position in which the option writer also is short the corresponding stock or has
On your bank statement, 'credit' represents funds that you have deposited into your account. The opposite of a credit is a debit.
Lender of money.
Person or business that is owed money.
Creditor Proof Protection
The creditor proof status of such things as life insurance, non-registered life insurance investments, life insurance RRSPs and life insurance RRIFs make these attractive products for high net worth individuals, professionals and business owners who may have creditor concerns. Under most circumstances the creditor proof rules of the different provincial insurance acts take priority over the federal bankruptcy rules.
Taking advantage of divergences in exchange rates in different money markets by
Overnight, collateralized loan made to a dealer financing his position by borrowing from a
Debt (Credit Insurance)
money, goods or services that someone is obligated to pay someone else in accordance with an expressed or implied agreement. Debt may or may not be secured.
The amplification of the return earned on equity when an investment or firm is financed
The process whereby the banking system transforms a dollar of reserves into several dollars of money supply.
Tax deductions that businesses can claim when they spend money on investment goods.
Non-interest-bearing money market instruments that are issued at a discount and
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