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Financial Terms | |
Sterilization |
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Definition of SterilizationSterilizationCentral bank action offsetting money supply changes automatically generated by a balance of payments surplus or deficit under a fixed exchange rate system.
Related Terms:ABM (automated banking machine)A bank machine, sometimes referred to as an automated teller machine (ATM). Accelerated cost recovery system (ACRS)Schedule of depreciation rates allowed for tax purposes. Accelerated depreciationAny depreciation method that produces larger deductions for depreciation in the accelerated depreciation(1) The estimated useful life of the fixed asset being depreciated is Accelerated depreciationAny of several methods that recognize an increased amount Accounting rate of return (ARR)A method of investment appraisal that measures accounting rate of return (ARR)the rate of earnings obtained on the average capital investment over the life of a capital project; computed as average annual profits divided by average investment; not based on cash flow ![]() Accounting systemA set of accounts that summarize the transactions of a business that have been recorded on source documents. Active portfolio strategyA strategy that uses available information and forecasting techniques to seek a actual cost systema valuation method that uses actual direct Adjustable rate preferred stock (ARPS)Publicly traded issues that may be collateralized by mortgages and MBSs. After-tax real rate of returnmoney after-tax rate of return minus the inflation rate. Agency bankA form of organization commonly used by foreign banks to enter the U.S. market. An agency Aggregate SupplyTotal quantity of goods and services supplied. Aggregate Supply CurveCombinations 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. All equity rateThe discount rate that reflects only the business risks of a project and abstracts from the ![]() All-or-none underwritingAn arrangement whereby a security issue is canceled if the underwriter is unable American Stock Exchange (AMEX)The second-largest stock exchange in the United States. It trades Amortizing interest rate swapSwap in which the principal or national amount rises (falls) as interest rates Annual percentage rate (APR)The periodic rate times the number of periods in a year. For example, a 5% annual percentage rate (APR)Interest rate that is annualized using simple interest. Arithmetic average (mean) rate of returnArithmetic mean return. At-the-moneyAn option is at-the-money if the strike price of the option is equal to the market price of the Auction rate preferred stock (ARPS)Floating rate preferred stock, the dividend on which is adjusted every Automated storage/retrieval systemA racking system using automated systems Average rate of return (ARR)The ratio of the average cash inflow to the amount invested. Average tax rateTaxes as a fraction of income; total taxes divided by total taxable income. average tax rateTotal taxes owed divided by total income. Balance of Merchandise TradeThe difference between exports and imports of goods. Balance of paymentsA statistical compilation formulated by a sovereign nation of all economic transactions Balance of PaymentsThe difference between the demand for and supply of a country's currency on the foreign exchange market. Balance of Payments AccountsA statement of a country's transactions with other countries. Balance of tradeNet flow of goods (exports minus imports) between countries. Balance of TradeSee balance of merchandise trade. Balance sheetAlso called the statement of financial condition, it is a summary of the assets, liabilities, and BALANCE SHEETA “snapshot” statement that freezes a company on a particular day, like the last day of the year, and shows the balances in its asset, liability, and stockholders’ equity accounts. It’s governed by the formula: Balance SheetA financial statement showing the financial position of a business – its assets, liabilities and Balance SheetOne of the basic financial statements; it lists the assets, liabilities, and equity accounts of the company. The balance Sheet is prepared using the balances at the end of a specific day. balance sheetA term often used instead of the more formal and correct Balance sheetA report that summarizes all assets, liabilities, and equity for a company balance sheetFinancial statement that shows the value of the Balance SheetA financial report showing the status of a company's assets, liabilities, and owners' equity on a given date. Balance sheet exposureSee:accounting exposure. Balance sheet identityTotal Assets = Total Liabilities + Total Stockholders' Equity Balanced-Budget MultiplierThe multiplier associated with a change in government spending financed by an equal change in taxes. Balanced fundAn investment company that invests in stocks and bonds. The same as a balanced mutual fund. Balanced mutual fundThis is a fund that buys common stock, preferred stock and bonds. The same as a Balanced ScorecardA system of non-financial performance measurement that links innovation, customer and process measures to financial performance. balanced scorecard (BSC)an approach to performance BAN (Bank anticipation notes)Notes issued by states and municipalities to obtain interim financing for Bankmoney in a bank cheque account, the difference between receipts and payments. Bank collection floatThe time that elapses between when a check is deposited into a bank account and when the funds are available to the depositor, during which period the bank is collecting payment from the payer's bank. Bank discount basisA convention used for quoting bids and offers for treasury bills in terms of annualized Bank draftA draft addressed to a bank. bank draftA guaranteed form of payment which is issued in amounts over $5,000. Bank for International Settlements (BIS)An international bank headquartered in Basel, Switzerland, which Bank lineLine of credit granted by a bank to a customer. Bank overdraftmoney owed to the bank in a cheque account where payments exceed receipts. Bank reconciliationThe process of taking the balances from the bank statement and the general ledger and making adjustments so that they agree. Bank reconciliationA comparison between the cash position recorded on a company’s Bank wireA computer message system linking major banks. It is used not for effecting payments, but as a Banker's acceptanceA short-term credit investment created by a non-financial firm and guaranteed by a Bankers AcceptancesA bill of exchange, or draft, drawn by the borrower for payment on a specified date, and accepted by a chartered bank. Upon acceptance, the bill becomes, in effect, a postdated certified cheque. BankruptcyState of being unable to pay debts. Thus, the ownership of the firm's assets is transferred from bankruptcyThe reorganization or liquidation of a firm that cannot pay its debts. Bankruptcy cost viewThe argument that expected indirect and direct bankruptcy costs offset the other Bankruptcy riskThe risk that a firm will be unable to meet its debt obligations. Also referred to as default or insolvency risk. Bankruptcy viewThe argument that expected bankruptcy costs preclude firms from being financed entirely Barbell strategyA strategy in which the maturities of the securities included in the portfolio are concentrated Base interest rateRelated: Benchmark interest rate. Basic balanceIn a balance of payments, the basic balance is the net balance of the combination of the current Basic business strategiesKey strategies a firm intends to pursue in carrying out its business plan. Benchmark interest rateAlso called the base interest rate, it is the minimum interest rate investors will Bill of exchangeGeneral term for a document demanding payment. Blue Ribbon Committee on Improving the Effectiveness of Corporate Audit CommitteesA committee formed in response to SEC chairman Arthur Levitt's initiative to improve the financial book rate of returnAccounting income divided by book value. Break-even payment rateThe prepayment rate of a MBS coupon that will produce the same CFY as that of Break-even tax rateThe tax rate at which a party to a prospective transaction is indifferent between entering Broker loan rateRelated: Call money rate. Budget deficitThe amount by which government spending exceeds government revenues. Budget DeficitThe excess of government spending over tax receipts. Bullet strategyA strategy in which a portfolio is constructed so that the maturities of its securities are highly business intelligence (BI) systema formal process for gathering and analyzing information and producing intelligence to meet decision making needs; requires information about Buy-and-hold strategyA passive investment strategy with no active buying and selling of stocks from the Call money rateAlso called the broker loan rate , the interest rate that banks charge brokers to finance Capital surplusAmounts of directly contributed equity capital in excess of the par value. Capitalization RateA discount rate used to find the present value of a series of future cash receipts. Sometimes called discount rate. cash burn rateA relatively recent term that refers to how fast a business Cash transactionA transaction where exchange is immediate, as contrasted to a forward contract, which Central BankA public agency responsible for regulating and controlling an economy's monetary and financial institutions. It is the sole money-issuing authority. centralizationa management style that exists when top management Changes in Financial PositionSources of funds internally provided from operations that alter a company's charge-back systema system using transfer prices; see transfer Chicago Mercantile Exchange (CME)A not-for-profit corporation owned by its members. Its primary Clearing House Automated Payments System (CHAPS)A computerized clearing system for sterling funds Clearing House Interbank Payments System (CHIPS)An international wire transfer system for high-value Collection fractionsThe percentage of a given month's sales collected during the month of sale and each Combination strategyA strategy in which a put and with the same strike price and expiration are either both Commercial BankA privately owned, profit-seeking firm that accepts deposits and makes loans. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |