ADVANCE - an amount of money issued against future payments for material assets, work performed and services rendered.
EXCISES - indirect taxes included in the price of goods and paid by the buyer.
SHAREHOLDER - a co-owner of an enterprise or organization established in the form of a joint-stock company, owning shares confirming the amount of his contribution to the authorized capital of the joint-stock company and giving the right to receive a dividend.
JOINT STOCK COMPANY - an enterprise or organization whose authorized capital is divided into a certain number of shares distributed among shareholders.
A SHARE is a security that certifies the participation of its owner in the formation of the funds of a joint-stock company and gives the right to receive an appropriate share of its dividend profit. Shares are sold and bought, incl. on the stock exchange.
AUDIT - a control function of the correctness of the preparation of financial documents.
AUCTION - successive sale of real goods based on the competition of buyers.
BANK - according to the legislation of the Russian Federation, a commercial institution, which is a legal entity, which, in accordance with the law and on the basis of a license issued by the Central Bank of the Russian Federation, has the right to raise funds from legal entities and individuals and place them on its own behalf on the terms of repayment, payment and urgency, and carry out other banking operations.
BANKRUPTCY - the ruin of an economic entity, individual or legal entity in the event of its recognition in the manner prescribed by law as an insolvent debtor.
BARTER is a direct moneyless exchange of goods or services.
EXCHANGE - the organizational form of the wholesale, incl. international trade in bulk goods with stable and clear quality parameters (commodity exchange), or systematic transactions for the purchase and sale of securities, gold, currency (stock exchange).
BROKER - an individual or firm engaged in mediation in the conclusion of transactions on the stock, commodity and currency exchanges.
EXCHANGE RATE - the price of the currency of one country, expressed in the currency of another country.
DEVALUATION - the official depreciation of the national currency against foreign currencies.
DUMPING - the sale of goods in the markets of other countries at prices below the level normal for these countries.
MONEY SUPPLY - the total money supply that determines the national economy and is in circulation.
MONEY is a special commodity that plays the role of a universal equivalent in the exchange of goods, a product of spontaneous exchange and a form of value for all other goods.
DEPOSIT - funds or securities deposited with financial and credit, customs, judicial or administrative institutions.
DEFICIENCY COMMODITY - discrepancy between the commodity supply and demand.
DIVERSIFICATION - an increase in the number of industries and the range of goods (services) produced by individual enterprises in new areas for them.
DIVIDEND - part of the profit of a joint-stock company, annually distributed among shareholders in accordance with the number (amount) and type of shares they own.
DEALER - a person (or firm) carrying out exchange or trade intermediation at his own expense.
SUPPLY - appropriations from the budget intended to cover planned losses or balance lower budgets.
INFLATION - the overflow of circulation channels with paper money, accompanied by their depreciation and rising prices.
CREDIT - a loan provided in cash or in kind on a repayment basis and, as a rule, with the payment of an interest determined by agreement between the creditor and the debtor for the use of the loan.
LIQUIDITY - the mobility of assets of enterprises, firms, banks, which implies the possibility of uninterrupted payment on time of credit and financial obligations and legitimate monetary claims.
BROKER - an intermediary between the parties when concluding transactions on stock and commodity exchanges.
MARKETING - analysis and forecasting of the market situation in order to guide production and provide better economic conditions for the sale of manufactured products.
MANAGER - manager of a company, bank, financial institution, them structural divisions; a professional in his field, endowed with executive power.
MONOPOLY - the exclusive right of production, trade, etc., owned by one person, a certain group of persons or the state; generally the exclusive right to something.
MONOPSONY - a situation in the market in which one buyer is opposed by a large number of sellers.
STATE TAXES - obligatory payments established and collected by the state from citizens, as well as from legal entities.
PENALTY - the amount that the debtor is obliged to pay to the creditor in case of non-fulfillment or poor-quality fulfillment of the obligation.
VALUE - the officially declared value of a banknote, a security, as a rule, does not correspond to the actual value.
OLIGOPOLY - a market situation in which a small number of fairly large sellers opposes a mass of relatively small buyers, and each seller accounts for a significant part of the total supply on the market.
OLIGOPSONY - a market situation in which a sufficiently limited number of buyers is opposed by a large number of sellers (manufacturers). GROSS PROFIT- the entire amount of profits of enterprises before deductions and deductions.
PROLONGATION - extension of the validity of the document. RENTIER- the owner of capital, living on interest from its provision on a loan or on income from securities.
REVALUATION - an increase in the official exchange rate of the national currency in relation to foreign currencies. REIMPORT- purchase and import from abroad of domestic goods that have not been processed there.
MARKET - a set of social economic relations in the field of exchange, through which the implementation marketable products and the social character of the work contained in it is finally recognized.
RENEWAL - a system of measures to improve financial position enterprises in order to prevent their bankruptcy or to increase their competitiveness. STAGFLATION- the state of the economy, when the stagnation or decline in production (stagnation) is combined with increasing unemployment and a continuous rise in prices - inflation. HOLDING- a type of entrepreneurship, the essence of which is the acquisition of controlling stakes in various companies in order to establish control over their activities and receive income in the form of dividends. SECURITIES - documents containing property rights that give the right to receive a certain part of income.
BUT
Absolute level of commodity prices- weighted average level of current prices in the country
Aval- bill of exchange guarantee
Letter of credit- an order from one bank to another to pay a third party against documents
letter of credit statement- a written application of the letter of credit to the issuing bank to open a letter of credit in the name of the beneficiary in the amount and for the period specified in the sales contract
Balance asset- the left side of the balance sheet, reflecting the allocation of available resources.
Acceptance- consent to pay for documents, which can be made in writing on the accepted document or silently, i.e. within the period established for acceptance, the acceptor does not submit a written statement of refusal to accept.
Acceptance-aval operations of commercial banks- Operations of banks on making acceptance or aval on promissory notes. Acceptance-aval transactions refer not only to passive, but also to active bank operations, since the same amount of funds is simultaneously reflected in the bank's assets as the sum of its claims to customers whose bills it has accepted. At the same time, if the bills are accepted by the bank, then its clients, on whose instructions the bank has accepted the bills, must deposit the amount due on it to the bank before the expiration of the payment period on the bill, so that the bank makes payment on the bill. If the bank has avalated the bill, then the persons liable under the bill (the bank's clients) are obliged to pay the bill to the holder of the bill, bypassing the bank, since by avalizing the bill, the bank vouched to the bill holder for the timely payment of the bill, the person liable under the bill.
Stock- securities with the help of which the joint-stock company creates an authorized fund (share capital). It is precisely because with the help of shares that statutory fund enterprises, shares are stock securities.
joint stock bank- a bank, the authorized capital of which is formed at the expense of funds from the issue of shares.
Joint-stock company- a corporation that has created an authorized capital based on the issue and placement of shares.
underwriting(underwriting) - guaranteed placement of securities of issuers by a commercial bank (underwriter) among its clients with subsequent resale of these securities to other buyers for profit.
Anticipation- anticipation (guess) of something expected, the premature occurrence of an event or the use of the right before its approval.
Banknotes- a type of paper money, first introduced under Catherine II (1769). It is appropriate to note that Peter I did not introduce paper money in Russia. Under Elisaveta Petrovna, the Senate found that "... it would be reprehensible that instead of money papers would go, and it would be dangerous not to give reasons for bad reasoning in the future." Nevertheless, the banknotes put into circulation lasted almost 100 years, until 1851.
B
Basel Accord on International Capital Standards - adopted in 1987 - 1988. regulatory authorities of the USA, Canada, Japan and leading industrialized countries of Europe, such as Belgium, Great Britain, Germany, Italy, Luxembourg, the Netherlands, France, Switzerland, Sweden, which established capital adequacy standards taking into account risks for commercial banks of countries, signatories to this agreement. Quote base- represents the currency with which any other currency is compared when it is quoted. For example, when determining the exchange rate of the Ukrainian hryvnia against the US dollar, the latter is the quote base. Accordingly, with a direct quotation used in Ukraine, the record of the hryvnia exchange rate against the US dollar has the form USD/UAH, where the US dollar is the quotation base.
Core inflation- inflation, which does not take into account consumer goods, whose prices fluctuate sharply with the season (milk, eggs, fruits and vegetables of the summer assortment; energy products, the prices of which can deviate sharply from real prices under the influence of political events; indirect taxes; interest payments on loans granted for the purchase of housing or housing Construction, the value of which may deviate in one direction or another under the influence of household expectations Other components of the consumer basket, the prices of which fluctuate significantly depending on external and internal price shocks Correspondingly, core inflation is understood as CPI adjusted for the prices of those goods in the consumer basket, which are characterized by serious fluctuations, primarily of a seasonal and other nature.
Base interest rate- The prima rate, which is the lowest rate at which short-term loans are provided to the most creditworthy and reliable clients with an impeccable financial reputation. The base interest rate is calculated for the planned period, based on the calculated profitability and cost of loans provided by the bank to first-class borrowers under reliable security.
Balance- an accounting report on the financial condition of an enterprise, organization, institution, including a bank.
banknote- a full representative of real money (gold), value and price. Therefore, the banknote was considered by K. Marx as a sign of real money. After the demonetization of gold, banknotes, along with real (gold) money, became a thing of the past and ceased to exist.
Banking system- a set of banks of the country, interconnected by correspondent relations.
Banker's acceptances- the bank's obligations to pay their holders certain amounts of money specified in the accepted document at a specified point in time and within a specified period.
Bank loan- economic relations between the lender and the borrower regarding the return movement of the loaned value issued by banks to individuals and legal entities
Barter- non-monetary commodity exchange.
Cashless payments- calculations based on credit movement
billon coin(French billon - low-grade alloy) - a bargaining chip.
Bimetallism- a monetary system in which two metals - gold and silver (or other two metals) play the role of a universal equivalent.
AT
Currency- the national currency of a country or the collective currency of a region or a union of countries.
Quote currency- the currency whose exchange rate is to be determined.
For example, with a direct quotation that exists in the vast majority of countries, in the exchange rate of the Ukrainian hryvnia against the US dollar (USD / UAH), the hryvnia is the quote currency, and the quote base is the US dollar.
Currency operation- the action of the subject of currency relations with currency values, performed by him in international and domestic payments.
Currency regulation- this is the procedure (or regime) established by the authorized bodies for the performance of currency transactions with currency values by the subjects of currency relations.
Currency restrictions- restrictions or prohibition on certain operations with currency values for residents and/or non-residents
currency values- values according to which the law establishes the procedure for the transfer of ownership rights to them both within the country and when they cross the state border.
Currency values include: currency and payment documents expressed in it (checks, bills of exchange, drafts, letters of credit, etc. mottos); stock securities (stocks, bonds and coupons for them); bank metals of the highest standards in accordance with international standards (in bars, coins and powders); securities of the loan capital market (deposit certificates, savings books, etc.).
Currency corridor- the limits of the exchange rate established by the legislation of the country (or by agreement between countries) within which the exchange rate of this country can deviate (float) in relation to the exchange rate of the reserve currency. The Central Bank of the country conducts foreign exchange interventions in the domestic market of the country in order to prevent the exchange rate of the national currency from going beyond the currency corridor. The regime of the currency corridor is known to the world community under the name of the European currency snake (ECU). The European currency snake is a regime of jointly fluctuating exchange rates of six EEC member countries (Germany, France, Italy and the Benelux countries), introduced by them in 1972. within plus or minus 2.25% of the established official currency parities of their currencies.
Exchange rate- the ratio of the purchasing power of two currencies
Currency (gold) parity- the ratio of the weight content of the precious metal in the compared currencies, legally fixed by the respective states for their monetary units, regardless of whether coins are minted from precious metals in their countries or not.
Veveritsa(veksha) - the smallest monetary unit in Ancient Russia.
bill of exchange- an unconditional, unspecified obligation to pay, upon the due date specified in the bill, the amount indicated in it to the specified person.
Money Market Mutual Funds- trust (trust) organizations established as joint-stock companies (open and closed) and receiving in trust management funds from the public on the basis of the sale of securities to it. Trust organizations use the proceeds to buy short-term fixed income securities or place them in a bank on a term deposit account.
Mutual Funds- are investment dealers in the securities market and in terms of the form of organization they are open joint-stock companies. The peculiarity of these investment dealers is that they invest funds raised by issuing their shares in securities of other issuers, mainly in shares large corporations, and more recently into government and municipal bonds. At the same time, some investment dealers, accumulating attracted funds, invest them in shares, others - in bonds, not to mention the industry specialization of investment companies and funds. It is appropriate to note that the attraction of funds by investment funds has nothing to do with deposits, and since they do not issue loans, they do not have a required reserve ratio. Investment-type mutual funds differ from money market mutual funds primarily in that the latter sell their shares at a fixed price, unlike investment-type mutual funds, which sell their shares at a market price that depends on changes in the interest rate.
Demand deposits- current deposits, which must be issued by the bank at the first request of the depositor.
External limits of inflation- are established by law in the form of the size of the emission of cash provided for by law or the planned rate of price growth.
Domestic inflation limits- are determined by the unprofitability for the issuer to increase the cash or non-cash issue of money.
Universal equivalent- a term introduced by K. Marx in relation to real (gold) money. The essence of the concept of "universal equivalent" is that gold money in all markets of the world, by its own value, can measure the value of all other goods and express commodity prices.
Secondary liquidity reserves- liquid assets that generate income, which are created by the bank in excess of the amount of required reserves. Secondary liquidity reserves include highly liquid assets that can be turned into cash at any time with minimal losses for the bank. Secondary liquidity reserves primarily include government securities held in the bank's portfolio.
Secondary securities market- such a securities market in which securities are offered for sale not by the issuers of these securities, but by financial market intermediaries (dealers, brokers).
G
Galloping inflation- characterized by a rapid and spasmodic rise in prices and a sharp decline in the purchasing power of the population.
Hyperinflation- is characterized by an ultra-fast rate of price growth and the practical loss of its purchasing power by money. Accordingly, the first to lose their purchasing power are low-denomination banknotes and small change. In the future, the same fate overtakes banknotes of larger denominations. Under such conditions, commodity producers include the future depreciation of money in the prices of their products, and the rate of price growth reaches astronomical heights.
government loan- a unilateral agreement on the provision of loans to the state by individuals and legal entities in the form of their purchase of government debt obligations (bonds of an internal state loan - government bonds with a designated maturity and yield level).
State loan- economic relations regarding the return movement of the loaned value, in which the state always acts as a borrower, and the population and legal entities act as creditors. State loan instruments are government bonds.
Gran- previously used unit of pharmaceutical weight; old Russian measure. 1 grain = 1/20 scruple = 0.062 g.
Credit use limits- the limits of lending both at the macro and micro levels. These limits are set in the form of specific indicators (for example, the maximum amount of loans that one bank can issue to its borrowers), in relation to the subjects of credit relations, forms of credit and types of loans, both in the country's credit system as a whole and at the level of individual banks and their clients. The boundaries of the use of credit have qualitative and quantitative characteristics. However, one cannot identify the limits of the use of credit at the macro level with the macroeconomic limits of credit, which simply cannot be set. The same applies to the limits of the use of credit at the micro level.
Credit limits- the limits of the existence of credit - can be external (intercategorical) and internal (temporal and spatial).
Interest limits- Limits of collection of loan interest.
There are upper and lower limits on the interest rate. The upper limit is determined by the average rate of profit, and the lower limit can be arbitrarily small, but when it drops very much, then market mechanisms come into play and raise the lower limit of the loan interest. Kyiv hryvnia- a silver hexagonal hryvnia weighing 38 spools or about 160 grams, has been in circulation in the Kiev principality since the 10th century.
Hryvnia kuna- is mentioned in the annals of ancient Russia and, like the hryvnia of silver (equal in value), was used in circulation. Accordingly, the silver hryvnia was a weighted monetary unit, and the kun hryvnia was a counting unit. Hryvnia (silver hryvnia or hryvnia kuna) = 20 nogat = 25 or 501 kuna = 50 rezan = 100 (150) veverits.
Moscow hryvnia- chopped hryvnia or hryvnia, a bar of silver of the same length as the Novgorod hryvnia, however, its weight was half that of Novgorod - 48 spools. From the Moscow hryvnia, 200 silver coins were minted - "Muscovites" weighing 1.02 g.
hryvnia novgorod- a silver bar weighing one pound (96 spools) and 20 cm long. 200 silver coins were minted from the Novgorod hryvnia - "Novgorodka" weighing 2.04 grams.
Hryvnia UNR(Ukrainian People's Republic 1918-1919) - was put into circulation from October 1918 in the form of banknotes of 6 denominations from 2 to 2000 hryvnia and lasted 4 months (until February 1919). The hryvnia contained 100 kopecks. Since February 1919, the state bank and the treasury of the UNR have been evacuated and information about the fate of their property, including hryvnias, has been lost.
Hryvnia of independent Ukraine- paper money put into circulation on September 2, 1996 as the national currency of the country. Contains 100 cents.
penny- (lat. - large, thick) coin that existed in a number of countries. The minting of silver pennies was started in Italy in the 12th century, and then pennies began to be minted in other European countries (Germany, France, the Czech Republic, Austria-Hungary, Poland, etc.). However, the content of silver in the coins of different countries was not the same and was continuously decreasing due to the deterioration of the coins. By the end of the XVIII century. Poland, Austria, Prussia and other countries began to mint copper pennies. On the lands of most of modern Right-Bank Ukraine (which was part of the Commonwealth for almost 100 years), the most common monetary unit among the population was a copper penny. As a result, the name "grosh" acquires in Pravoberezhnaya, and then throughout Ukraine, a common noun for all types and forms of money.
Goodwill(goodwill) - the good name of the company, its image, indicating the reliability and financial stability of the company.
D
Debit- the name of the left side of the accounts. The debit of active accounts records transactions that increase the balance of funds on the account, and the debit of passive accounts records transactions that cause a decrease in account balances. For example, for all passive accounts in banks, including current accounts of enterprises, the payments of the account holder are reflected in debit.
Debit card- represents a potential electronic alternative to cash, checks and credit cards in outlets. Unlike credit cards, debit cards allow you to deposit money into a card account using them.
Devaluation- (from Latin valeo - value and prefixes de-, meaning decrease) - this is a decrease in the exchange rate of national money against a foreign (national or collective) currency, caused by inflation within the country or a deficit in its balance of payments. The reason for the devaluation of the national currency may be the uneven development of inflation in the countries of the compared currencies, as well as the artificial underestimation of the exchange rate of national money in relation to other currencies.
motto- (fr. devises) means of payment in foreign currency intended for international settlements.
Value Date- the date agreed by the parties for the delivery of currency to the account of the counterparty under the transaction.
Motto policy- artificial increase or decrease in the exchange rate of the national currency, for example, with the help of foreign exchange intervention, i.e., the sale or purchase of foreign currency by the central bank in the domestic market of its country. At the same time, if the central bank sells large amounts of foreign currency in the domestic market of the country, then the exchange rate of the national currency of the country rises. If the central bank begins to buy up foreign currency in the domestic market of the country, then the exchange rate of the national currency decreases. It should be noted that the motto policy is ineffective in cases where the country's balance of payments is passive for a long time or when prices are constantly rising in the country, indicating a corresponding increase in inflation.
Valid Money- a term introduced by K. Marx for gold money in the form of coins and ingots, in contrast to banknotes made from paper, but which are full representatives of real money.
Demonetization- gradual loss monetary metal all functions of money. The demonetization of silver occurred gradually. Accordingly, by the end of the XIX century. in most countries, silver has been demonetized. Unlike the demonetization of silver, the demonetization of gold was finally carried out within the framework of the IMF. On April 1, 1978, in accordance with the Amendments to the IMF Charter, the official price of gold and all the functions of money were legally abolished.
Denarius- (from lat. denarius, consisting of 10) an ancient Roman silver coin weighing 3.41 g of pure silver.
monetary base is an indicator of the money supply in circulation. Consists of central bank cash on hand, cash in circulation outside the bank, and commercial bank deposits (required reserves) at the central bank. The monetary base - the basis of the money supply - is formed by the central bank of the country. The monetary base is, first of all, the number of banknotes and coins made of base metals, which reflects the nominal value of the money supply issued into circulation. However, the monetary base does not include the cash reserve in central bank vaults. Along with cash, the monetary base also includes the mandatory reserve fund, created in the central bank at the expense of commercial banks.
money supply the money supply in the country. Consists of cash outside banks and deposits of commercial banks.
Currency unit- under the gold standard, the monetary unit was understood as the weight of the metal, legally established in the monetary unit and by which the amount of gold mentally represented in the product was measured and commodity prices were set. After the demonetization of gold, the monetary unit is understood as the name of the national monetary unit and its samples.
Monetary reform- full or partial change in the elements of the country's monetary system.
monetary system- legally established device of monetary circulation and money circulation.
money offer- the same as the money supply created by the central and commercial banks ..
monetary aggregate- a group or several specific groups of liquid assets and instruments of the money and credit markets that serve as alternative measures of the money supply.
Monetary assets of individuals- cash outside banks, funds in bank accounts and all kinds of quasi-money.
cash tickets- debt obligations of the central bank in circulation.
Monetary aggregate MO--nominal value of cash in circulation (outside banks).
Monetary aggregate M- the nominal value of cash outside banks and transaction deposits that do not belong to commercial banks. Narrow money supply.
Monetary aggregate M nib- applies in the UK and includes cash in circulation and non-revenue deposits.
Monetary aggregate M-- the nominal value of the sum of the monetary aggregate M and Mn ("almost" money). Broad money supply.
Monetary aggregate M--nominal value of the sum of the monetary aggregate M and SDR (money market funds). Broad money supply.
Monetary aggregate L (M)--nominal value of the sum of the monetary aggregate M and TFR (credit market funds).
Monetary aggregate M- used in the UK (see Table 3.6).
money multiplier- a multiplier showing how much new credit money can be created in the system by each currency unit of the initial excess reserves.
Cash turnover of the enterprise- the release of cash proceeds from the sale of products from the circulation of the capital of the enterprise with the subsequent advance of funds into the circulation of capital.
Country's money turnover- continuous process the movement of money in their interconnection and interdependence (cash and non-cash forms) between the subjects of economic relations.
Money turnover- the movement of cash in the exchange of goods when performing acts of sale in cash.
Monetary regulation- maintaining the stability of the national currency and the country's economy with the help of monetary regulation tools (operations on the open market, the discount rate of the central bank, the required reserve ratio, the market interest rate, the introduction of restrictions or prohibitions on different kinds banking activities).
Money Scale- the maintenance of the quantity of change coins established by the law in one national monetary unit. Since the decimal system of measurement is currently adopted throughout the world, national monetary units consist of 100 cents, pence, pennies, kopecks, etc.
Money market- a set of banks, non-bank credit institutions, stock and currency exchanges that accumulate cash flows coming from firms and households, with their subsequent provision on a commercial basis at the disposal of other firms and households.
Money outside banks- cash in circulation.
Money is not a commodity- money tickets that do not have their own value and therefore do not have the main property of the commodity - the unity of use value and value. In addition, modern money is not a commodity, and because money is not produced for sale and has no price (and there is no commodity without a price).
Money market deposit accounts- special deposits in depository institutions, similar to money market mutual funds.
Deposit certificate(Eng. Certificate of Deposit) - a security that is evidence of a large deposit made by a legal entity to a bank for a period of at least one year, after which the bank undertakes to redeem the certificate with interest.
Demand deposits- deposits that can be withdrawn by the depositor without prior notice to the bank (at the first request of the depositor) or transferred to other accounts in this or other banks.
Income-generating deposits- deposits on which the bank pays interest to the depositor.
State budget deficit- excess of state budget expenditures over revenues.
GDP deflator(English deflator) - an indicator of changes in the general price level in the country for the entire mass of goods and services produced in it. The deflator is used to estimate the extent of inflation in a country.
Deflation- a decrease in the general level of prices in the country in any period.
Diversification(lat. diversus - different and facere - to do) - the distribution of investments (national money, foreign currency and loans) between various investment objects and subjects of relations in order to reduce the risk of possible losses of capital or income from it.
Discount(eng. discount - discount, discount percentage, accounting rate) - the discount rate charged by banks when discounting bills; the difference between the nominal value of a security and its exchange rate in the case when the latter is lower; in urgent foreign exchange transactions - a discount from the exchange rate for cash transactions.
Discount policy- the impact of the central bank on the level of the discount rate. At the same time, with an increase in the discount rate, the inflow of foreign currency into the country increases, which indirectly contributes to an increase in the exchange rate. At the same time, the influence of the discount policy is limited, since the international movement of the currency is determined not only by the rate of interest.
Remote banking customer service- involves the provision of banking services to customers on the basis of remote instructions received from the customer regarding the performance by the bank of specific operations: payment and / or informative, which are transmitted by customers to banks through access channels agreed with them, without visiting the bank by the customer. Remote servicing is carried out using the "client-bank", "client-Internet-bank" systems and the "telebanking" system. The legal basis for remote servicing by a bank of its clients is an agreement between the bank and the client on settlement and cash services, which, in addition to instructions on the rights and obligations of the parties, also contains a list of remote services provided by the bank, at the expense of the client.
trust operations(English trust - trust) is otherwise called trust. The essence of trust transactions is that trusted property passes to trustees who must manage it solely in the interests of the trustee, which is the highest priority for trusts. The trust operations carried out by banks include: temporary management of property of persons who, for various reasons, cannot independently manage it (for example, elderly people, minors, widows, etc.); introduction to inheritance rights; acceptance of jewelry; liquidation of property of bankrupt enterprises; registration of newly issued securities; securities management, etc.
Contractual discipline- lies in the fact that all economic entities must comply with the terms of the contracts they have signed. And since the end result of economic activity under a specific contract is payment, commercial banks have the opportunity, on the basis of documents, to control both the contractual basis of the delivery of goods and the payment made in accordance with the contract (purchase and sale, contractual write-off, etc.).
Contractual write-offs- involves the acquisition by the supplier of the opportunity to exercise his right to actually receive payment, after the due date payment (i.e., on an overdue payment), by issuing a payment request, paid without acceptance by debiting funds by the bank on the basis of an agreement concluded between the bank and the payer.
Long term loans- loans granted for a period of more than 3-5 years.
households(English household - household) - independent economic units. Persons belonging to households share their earned income. Households can also consist of one person.
Traveler's checks(English check) - payment documents used mainly as a means of international non-commercial settlements. Traveler's checks are issued in various denominations in national and foreign currencies. Since traveler's checks are not legal tender on the territory of another country, their purchase and acceptance in other countries is ensured by an agreement between the issuer and the bank (banks) of another country.
E
Euro- (EUR from the first letters of the English european - European or euro) the collective currency of the countries of the European Union (EU). Eurocurrency- the national currency of a country that has left its jurisdiction, is on bank accounts in other countries and is provided as loans to third countries. Single money turnover of the country- the same as the money circulation of the country.
Z
Loans in Eurodollars- liquid assets, similar to repurchase agreements (REPO), which are used for operations with dollar funds that have left the jurisdiction of the United States and are on accounts in commercial banks in other countries and are provided as loans to third countries.
Borrower- natural or legal person who received the loan.
Gresham-Copernicus law- says that "worse money drives better money out of circulation" or, in other words, less valuable money always pushes more valuable money out of circulation.
Law of currency- discovered by K. Marx says that the amount of real money needed for circulation is directly proportional to the sum of prices of circulating goods and inversely proportional to the speed of turnover of the same monetary units.
Law Kn- the same as the law of monetary circulation, discovered by K. Marx.
Law of the value of money- derived from the law of money circulation, discovered by K. Marx, says that how many times the actual number of money signs (banknotes) will be more than the amount of real money needed for circulation, so many times the value of each currency unit of the money sign will be less than the value of the real money unit ( gold) money.
Closed coinage- the minting of coins by the state from metal belonging to it.
Pledge- a means of securing the fulfillment of the borrower's obligation with property pledged on a loan. If the loan is not repaid within the period stipulated by the loan agreement, the bank has the right to sell the collateral and, using the proceeds from its sale, repay the obligation and accrued interest, and return the rest to the borrower.
closed currency- a currency whose issuing country has introduced currency restrictions for both residents and non-residents. Such a currency is not used in the major foreign exchange markets of the world.
Offset of mutual claims- a form of non-cash settlements in which mutual claims for matching amounts can be mutually offset and, accordingly, repaid, and the difference arising on the basis of offsetting the amounts of mutual claims is paid to that participant in the offset, which, in the end, turned out to be a creditor in relation to other participants in the settlements .
Zlatnik- the first Russian gold coin circulating in the Kiev principality in the 10th century. The minting of the goldsmith was episodic. The weight of the spool is about 4.2 grams, later it was taken as the basis for the weight unit - the spool, equal to 1/96 of a pound.
money signs- banknotes that are full representatives of real (gold) money and therefore signs of money, value and price.
spool- an old Russian weight unit equal to 1/96 of a pound or 4.26 g.
gold coin standard- a kind of metallic type of monetary system. A distinction was made between the gold coin standard, the gold bullion standard and the gold exchange standard. Under the gold coinage standard, there was free minting of coins with a fixed gold content of the monetary unit established by law, which contributed to the influx of gold into the country's monetary system. Signs of money - banknotes, freely exchanged for gold coins at face value. Therefore, banknotes superfluous to circulation were exchanged for gold (according to K. Marx), and coins, without depreciating, went into treasures.
Gold bullion standard- a kind of metal type of the country's monetary system, in which gold coins were not in circulation, and banknotes, as signs of gold and signs of value, were exchanged in a number of countries exclusively for gold bars, which required large amounts of exchanged banknotes.
Gold exchange standard- a kind of metal type of the country's monetary system in which gold coins were not in circulation, and the banknotes in circulation were not directly exchanged for gold, but were exchanged for banknotes (mottos) of those countries in which the gold bullion standard was still legally preserved.
And
excess reserves- reserves that the bank (or the credit system as a whole) has in excess of the required reserves; total actual reserves net of required reserves.
Import- import of goods and services into the country from abroad.
Importer- a person who imports goods and services.
Investments(investment) - investments in real or fictitious capital.
Investment certificate- a security that testifies to the contribution of a certain amount to an investment company or investment fund and entitles its holder to receive income in the form of interest.
Consumer price index(CPI) - an indicator of the level of inflation in the country. It is calculated as the ratio of the cost of the consumer basket of the current year to the cost of the consumer basket of the previous (or base) year (in percent).
Endorsement- an endorsement made on nominal and warrant checks and bills of exchange.
Endorser- the person giving the endorsement.
endorser- the person in whose favor the endorsement is made.
collection file- card file of settlement documents received for collection. In the planned economy, there was a file cabinet No. 1 for urgent documents received for collection, and a file cabinet No. 2, the so-called "black file cabinet" for documents overdue in payment.
Collection operation- assuming by the bank, on behalf of the client (supplier of goods or services), obligations to complete the workflow and collect payment. The collection operation was used in the settlement of payment claims. Today it is used in settlements by checks, in the form of letters of credit and in the accounting (discounting) of bills of exchange.
Money market instruments- mainly represented by such instruments as term (within 1-12 months) repo, shares of money market mutual funds and other instruments of the latter.
Credit market instruments- banker's acceptances, commercial papers and some other instruments of the credit market.
Inflation- a long and uneven rise in prices, leading to the depreciation of national money.
Demand inflation- associated with an excess growth in aggregate demand for goods and services, which is not kept up with production volumes. As a result of excess demand, the balance of commodity and money supply is carried out through the price mechanism and, accordingly, prices rise in the country - demand inflation, initiated by the growth of aggregate demand.
cost inflation- is associated with an increase in production costs, which reduce the profits of commodity producers and make the production of certain goods unattractive, if not unprofitable, in connection with which the volume of production (aggregate supply) is reduced. As a result of a reduction in the aggregate supply of goods and services, the mass of goods is reduced, although aggregate demand remains unchanged, resulting in rising prices.
Mortgage- a specific type of collateral for an issued loan, represented by real estate (land plots, buildings, sea and river vessels, space objects) remaining in the use of the borrower.
Mortgage- credit relations based on a mortgage agreement, in accordance with which the bank provides loans for the construction or purchase of real estate.
Usability of the currency- the property of the currency to be used (bought and sold) on the main foreign exchange markets of the world (London, New York, Tokyo, etc.). The term "usability" of the currency was introduced at the Jamaica Conference instead of the term "convertibility" of the currency, i.e. the exchange of banknotes for gold in banks, which de facto lost its economic meaning long before the demonetization of gold, which only consolidated the concept of "usability" de- jure.
To
Treasury bills- short-term government security, sold at a discount, and redeemed at face value.
Capital Creation Theory of Credit- reflects the idea of the priority of active operations over passive ones (and the resulting far-reaching autonomy of banks in providing loans). The capital creation mechanism consists in the fact that a deposit on the current account (in the form of an entry on it, accounted for by the liabilities of the bank's balance sheet) can be created at the expense of the previous (the appearance of the deposit) issuance of a loan (accounted for by the asset of the bank's balance sheet). In other words, the loan is provided in excess of the available credit resources, and the bank "creates" capital literally out of thin air, creating, however, an imaginary contribution. Currently, this theory is widely used in practice by banks in most countries of the world under the control of their liquidity.
Karbovanets- originally introduced in Ukraine as its national currency under Hetman Skoropadsky. Karbovanets were put into circulation and were in it from January 5 to September 24, 1918. In addition, Karbovanets was the national currency of Ukraine, which is part of the USSR. The gold content of karbovanets and its purchasing power within the USSR were the same as those of the Soviet ruble and the national monetary units of the other 15 republics that were part of the USSR, since for all the republics of the USSR there were uniform samples and denominations of banknotes. With the acquisition of independence by Ukraine, it introduces the karbovanets as its national currency, which was then (in 1996) replaced by the hryvnia.
Cash on hand- banknotes and small change held at the cash desk of an economic entity, including a bank.
Quasi money(lat. - "almost"), i.e. almost money - various highly liquid assets in the form of deposits in commercial banks, which can be turned into cash without loss within one day. Among the quasi-money are such as savings deposits, one-day repurchase agreements, one-day loans in Eurodollars, etc.
Cambridge Equation(Ms=kRU) is a mathematical expression of the demand for money through the coefficient k, which is the inverse of the velocity of money (Tc = 1/U), and reflects the share of demand for money in the total portfolio of income of business entities.
NBU foreign currency classifier- reflects the codes of all foreign currencies, and the currencies themselves are grouped into three groups almost identical to the three types of currencies. The need to use currency codes is due, first of all, to reducing the volume of interbank information transmitted and its accuracy. The NBU foreign currency classifier was first introduced in Ukraine in 1998 by the Resolution of the NBU Board No. 34, approved on February 4, 1998. Subsequently, changes were made to the Classifier.
Classical quantity theory of money- proceeds from the fact that an increase in the amount of money (both gold and paper) in circulation contributes to an increase in prices. At the same time, the classical quantity theory proceeds from the fact that the velocity of money and the volume of production are stable. Accordingly, under such conditions, changes in the money supply have a direct proportional effect on commodity prices.
Key currency- the same as the backup.
Collective currency- the currency of a group of countries in which settlements are carried out either only between the countries of this group or other countries that are not members of the union of these countries or the currency fund created by them.
Commercial securities- credit instruments of circulation. These include checks, bills of exchange, drafts, letters of credit, bills of lading, warrants, etc.
Commercial Course- the exchange rate of national money, set by commercial banks in the form of buyer and seller rates. The commercial rate is a market exchange rate that changes under the influence of supply and demand for a currency at any particular moment in time.
Components of monetary aggregates- specific monetary assets (and instruments) included in a particular monetary aggregate, in accordance with the recommendations of the central bank of a particular country.
Conversion- change in the initial conditions of government loans: the method of repayment, the currency of payment and profitability, as a rule, in the direction of its decrease.
Currency Convertibility- free exchange of banknotes for monetary metal (gold or silver). There is currently no currency convertibility as both monetary metals are demonetized. Therefore, with the signing of the agreement on the demonetization of gold, the IMF introduced the term "usability" of currencies in the main foreign exchange markets of the world, thereby emphasizing the full (or partial) exchangeability of some currencies for other currencies.
Consolidation- the transformation of short-term government loans into long-term or perpetual. Simultaneously, unification (combining several loans into one) and conversion of loans can be performed.
Currency basket- method for calculating the weighted average exchange rate of a monetary unit in relation to a set of currencies in the basket. At this method calculations are taken into account specific gravity currencies in the basket and their exchange rates to the quote base. Used for all collective currencies, as well as for a number of national currencies. The set and share of each currency in the basket of currencies is determined by the share of exports of the products of the issuing country of the currency to the world community.
Correspondent account- a current account of one bank in another bank.
Indirect funding- movement of financial sources of funds (household savings) from households to firms, enterprises and institutions through money (financial) market intermediaries.
Currency quote(fr. coter to number, mark) - setting the exchange rate. When quoting a currency, the ratio of the purchasing power of two currencies is established. In this case, one of the two correlated currencies will be the quote base, i.e., the currency with which the second (quoted) currency is compared, the rate of which is determined.
Currency quotation indirect- the ratio of the national currency to foreign. In an indirect quotation, in which the national currency is valued in a foreign currency, the quotation base will be the national currency, and the quoted currency will be the foreign currency.
Direct currency quote- the ratio of foreign currency to national. In a direct quote, in which a foreign currency is valued in terms of the national currency, the quote base will be the foreign currency and the quote currency will be the national currency.
Economy monetization coefficient- is considered today in Ukraine as an important indicator of the provision of money (monetization) of the country's economy. At the same time, the coefficient of monetization of the economy is the reciprocal of the velocity of money, which, in fact, is the value that determines the need for money in the country's economy.
Short term loans- loans granted for a period not exceeding twelve months.
Monetary base- the same as the monetary base. The term "monetary base" emphasizes the credit nature of the banknotes of modern non-commodity money and money accounted for in bank accounts.
Account credit- the name of the right side of the accounts. The credit of active accounts records transactions that reduce account balances, while the credit of passive accounts records transactions that cause an increase in account balances. For example, for all passive accounts in banks, including current accounts of enterprises, the loan reflects the receipt of funds.
Credit- economic relations between the lender and borrowers regarding the return movement of the loaned value. The object of a loan is a loan.
Credit card- a plastic card that is the property of the bank. Designed to record purchases on the account of an individual or legal entity, which must be paid later. The seller receives the money immediately, regardless of when the buyer pays for the purchase. Bank credit cards are widely used to take out credit relations with the cardholder outside the bank.
credit system- a set of rules established in the country for the implementation of credit relations, as well as credit institutions of banking and non-banking types that implement these rules in credit relations.
Creditor- the natural or legal person who provided the loan to the borrower.
Lender of last resort- the country's central bank, which provides loans to commercial banks to maintain their liquidity in cases where it is difficult to obtain the required amount of funds on the loan capital market.
credit unions(and their associations) - associations of individual citizens that are created on a share basis. Most often, credit unions and credit partnerships specialize in lending services to the poor. The credit union carries out mainly lending to consumer needs and less often mortgage lending to its members. The formation of credit unions and credit partnerships can be carried out on a professional, territorial, religious or other basis. The number of founders, for example, of a credit union in Ukraine, cannot be less than 50 people.
Credit partnerships(and savings and loan associations) - associations of individual citizens that are created on a share basis. The credit partnership carries out mainly mortgage lending and less often lending to the consumer needs of its members. The formation of credit partnerships can be carried out on a professional, territorial, religious or other basis.
Credit risk- the risk of non-repayment of the loan by the borrower.
Curve IS- graphical interpretation of the relationship between the rate of interest and national income at equilibrium in the commodity markets.
LM curve- graphical interpretation of the relationship between the rate of interest and national income in equilibrium in the money markets.
Cross course- represents the exchange rate in which the US dollar is neither the quote base nor the quote currency (quote currency). And although there is no US dollar in the cross rates, the exchange rates against the US dollar serve as the basis for calculating the cross rate. For example, the Swiss franc to Danish kroner (DKK/ /CHF) is a cross rate. The cross rate (eng. cross - crossing) is determined on the basis of the ratio of two currencies through their rate to the third currency. Most often, in practice, the US dollar (or other reserve currency) is used as the "third" currency, which can either be the quote base in both currencies of the cross rate, or the quote currency, or be the quote base in one currency, and be the quote base in the other currency. quote currency. In practice, the cross-rate is the ratio of two foreign currencies, determined on the basis of their exchange rate to any third currency. With this approach to the cross rate, it may contain the US dollar, which does not correspond to the strict concept of a cross rate.
Circulation of income and products is the flow of money paid for goods and services, balanced by the corresponding flow of goods and services exchanged between firms and households.
Circulation of enterprise funds- a consistent and constant change in the forms of value of the enterprise's assets: monetary (advance of funds into circulation), commodity (inventory), productive (work in progress), commodity (finished products) and again monetary (revenue from product sales).
Kuna- the old Russian name of the counting monetary unit, which came from the name of the valuable marten fur used as money.
Bid-course interbank exchange rate. A bank that quotes a currency usually names the Bid rate (buy rate) and Offer (sell rate). The Bid rate with a direct quote is the rate at which banks buy foreign currency for the national one. With a direct quote, the excess of the Offer rate over the Bid rate is called spread or margin.
Offer course- interbank exchange rate for the sale of foreign currency for the national currency by one bank to another bank.
Purchase rate- the commercial rate at which the bank buys foreign currency for the national one. With a direct quote, the buyer's rate is always lower than the seller's rate.
Sale rate- the commercial rate at which the bank sells foreign currency for the national one. With an indirect quotation, the seller's rate is always lower than the buyer's rate.
Spot rate - this is the contractual interbank rate, which is the current exchange rate in force on the date of the conclusion of the contract, at which the currency must be delivered no later than on the second business day, not counting the day of the conclusion of the contract.
Course forward- contractual interbank exchange rate for forward transactions. Forward transactions have standard terms: 1 month, 2 months, 3 months, 6, 9, and 12 months. It is important to note that forward exchange rates are calculated during the implementation of a forward transaction, the conclusion of which means an agreement between two parties to exchange one currency for another after a certain period at the rate set when the contract was signed. At the same time, the forward transaction is firm, i.e., obligatory for execution. The usual forward rate (outright forward, English outright - direct, open)) is based on a premium or discount determined by the swap market. Therefore, for simple forward transactions, it is enough to know that the forward rate is equal to the spot rate plus or minus the forward margin, also called the premium or discount. Unlike the forward rate within a swap, the forward rate that is not associated with swap operations is called the simple forward outright rate.
L
Latin Union- was the prototype of the European Union. In 1865, a number of countries (Belgium, Italy, France, Switzerland, and then Greece), considering bimetallism the best type of monetary system to maintain the stability of their national money, concluded a monetary convention (1865) for a period of 15 years on the creation of a Latin monetary union providing:
free coinage of gold and silver coins in denominations of 5 fr. and higher, subject to their official value ratio of 1:15.5 (i.e. gold is 15.5 times more expensive than silver);
obligatory acceptance of these coins by all state cash desks of the member countries of the union; the same weight content and fineness of the metal in national monetary units (4.5 g of pure silver or 0.29 g of pure gold) in all countries, equal to the content of the French franc;
free circulation of national coins made of gold and silver of some member countries of the union on the territory of other member countries of the union; for defective (the nominal value of which is higher than their value) small silver coins, denominations of less than 5 francs, a limited closed coinage was established, while limiting each payment in this coin to no more than 50 francs. By the beginning of the First World War, the Latin Monetary Union had practically ceased to exist.
Ligature- an admixture of a cheaper metal added to a coin made of precious metals (or in general to noble metals) to increase their hardness or reduce the cost. The content of the ligature in the alloy is determined by its breakdown.
Leasing- these are operations of a leasing company or a bank that provides leasing services and consists in the fact that an enterprise (lessee or lessee) receives for use for a long time on the terms of leasing a means of production from a lessor (lessor), which has either already acquired or specially for the lessee acquires from the supplier (manufacturer) the means of production he needs. Currently, commercial banks have begun to participate in leasing operations, acting as lessors (landlords).
The objects of leasing can be all types of industrial equipment, means of transport, buildings, structures, rights intellectual property and etc.
Bank liquidity- the ability of the bank at the first request of the depositor (or reliable borrower) to give him cash.
Bank balance liquidity- availability of balance in the bank's balance sheet between the amount and term of release of funds on the asset in cash and the amount and term of forthcoming payments on the bank's obligations.
Liquidity of monetary assets- the ability of monetary assets at any time to turn into cash without loss.
Liquid approach to cash assets- the ease with which the owner of a monetary asset can turn it into cash (sell / redeem this asset for cash) at any time at minimal cost. The liquid approach thus emphasizes the importance of the function of money as a store of value (purchasing power).
Pawnshop- a credit institution of a non-banking type, issuing loans to the population on the security of things. It got its name from the Italian province of Lombardy, where such operations were first carried out and, accordingly, pawnshops arose.
M
Marxist theory of money- considers money (gold) from the position of labor value as a commodity that has use value and value and performs the role of a universal equivalent. In Marxist theory, the value of money and goods is determined by the labor costs for their production. However, considering the price of a commodity as a monetary expression of its value, the Marxist theory did not take into account the theory of marginal utility, according to which the price of a commodity is determined not only by the labor costs for its production, but also by its usefulness (“necessity”) to society in specific conditions. In addition, Marxist theory proceeded from the fact that the sum of prices of circulating goods determines the amount of real money needed for circulation, although practice has refuted this approach to the relationship and interdependence of the money supply (both gold and paper money) and commodity prices.
Price Scale- the weight of the precious metal, legally assigned to one monetary unit of the country.
International liquidity- the country's ability to fulfill its obligations to other creditor countries in a timely manner using international means of payment acceptable to the creditor country. In a broader sense, international liquidity is the totality of all sources of financing and lending available to the country for the global payment turnover. Therefore, the international liquidity of countries depends on the provision of the entire world monetary system with international reserve assets. An indicator of a country's international liquidity is, as a rule, the ratio of its gold and foreign exchange reserves available to it to the sum of its three-month merchandise imports.
International Monetary Fund- interstate coordinator of currency relations, created in 1947 and intended for interstate regulation of currency relations. The IMF is the institutional basis for currency regulation in the global monetary system, whose recommendations are taken into account by almost all countries.
International credit- form of credit. A way of existence of credit relations between residents and non-residents of the country, in which governments, banks, firms and individuals can act as creditors (and borrowers), and loans are granted in eurocurrency, i.e. in the currency of a third country.
Exchange value- is represented as a quantitative ratio, as a proportion in which use-values of one kind are exchanged for use-values of another kind.
Metalistic theory of money- identified the wealth of society with money, and money with precious metals, believing that the only real wealth of society is gold and silver, which by their nature and essence are money, although gold and silver by their nature are not. Accordingly, the metalistic theory considered only those functions of money that could be performed exclusively by gold and silver - the function of a measure of value, the function of treasures and the function of world money. As for such functions of money as a means of circulation and a means of payment, which banknotes can also perform, these functions remained outside the field of view of the theory under consideration.
golden dot mechanism- deviations of the exchange rate from the currency parity within the limits of gold points in the conditions of free movement of gold between countries. Distinguish between the upper and lower golden points of the exchange rate. The upper gold point (the import point at which gold was imported into the country) is equal to the exchange rate plus the cost of transporting the metal from one country to another; the lower gold point (the export point at which gold was exported out of the country) was equal to the exchange rate minus the cost of the corresponding transportation. (Transportation costs amounted to 0.5% of the value of the transported metal from one country to another). For example, if the currency parity of the pound sterling in US dollars was 4.87 (7.322383 / 1.50463), then the exchange rate of the f.st. could be either 4.894 (4.87 + 0.024) dollars per pound (import top gold point) or 4.866 (4.87 - 0.024) dollars per pound (export bottom gold point).
Monetarism- a school of economic thought that focuses on changes in the amount of money in circulation as a determining function of prices, income and employment.
Monetization of the economy- provision of money for the processes of production and circulation of GDP.
Monometallism- a type of monetary system in which the role of a universal equivalent was played by one metal - silver or gold (not counting copper in Ancient Rome), although another metal could be in circulation, which, however, could not play the role of a (second) universal equivalent, in As a result, his role was limited.
H
Cash settlements- settlements carried out with the help of cash.
Cash in circulation- cash outside banks.
Cash- at the present time banknotes and small change from base metals.
Naturalistic theory of credit- considered the essence of credit as a way of transferring natural, that is, material, goods from one hand to another. Considering the object of credit relations in the form of natural goods created without the participation of credit, naturalistic theory assigned a passive role to credit, putting the production of natural goods in first place and credit in second place, although it saw a close connection between credit and production.
national product- the total value of all final goods and services produced in the economic system in a year.
national income- total income received by households, including the total amount wages, rent, interest payments and profits.
Defective money- coins (including those made of precious metals), the nominal value of which is higher than their value.
Non-residents- individuals and legal entities permanently residing and/or carrying out their activities in the territory of other countries (and according to their laws); foreign citizens temporarily staying on the territory of Ukraine; international organizations, consulates, representative offices, as well as branches of various foreign companies on the territory of Ukraine that do not carry out entrepreneurial activities.
Non-trading foreign exchange transactions- operations with the currency of individuals for foreign currency transfers, transfers of foreign exchange funds by pension funds (by agreement between them) for the payment of pensions to their citizens living in the territories of other countries, settlements using international plastic cards, currency exchange operations, etc.
Nogata- the monetary unit of ancient Russia equal to 1/20 of a silver hryvnia or hryvnia kuna. One nogata was more than one kuna, as individual skins of martens (or certain parts of them) were sewn into one fur cloth, known in the "fur" monetary system as nogata.
nominalist theory of money- (nominalism), in contrast to the metallic and Marxist monetary theories, denies any internal connection between money and precious metals. According to nominalists, money is only an ideal unit of account, with the help of which exchange proportions between goods are determined and these monetary units have no intrinsic value. Nominalists proclaim nominal paper money, devoid of a commodity nature, as conventional signs and creation state power.
Nominal interest rate- represents (at actual prices) the real rate of interest on loans adjusted for inflation (CPI).
Nominal value of money- face value (the face value indicated on the money ticket).
Nominal cash income- this is the amount of monetary units that an individual receives in the form of wages or other types of income - for example, profits.
Required reserve ratio- the value (as a percentage of the deposit attracted funds) of cash on hand or highly liquid assets, which commercial banks are obliged to keep in the central bank on their correspondent accounts, established by the central bank of the country.
Interest rate- the share of payment for the use of the loan (loan interest) in the amount of the loan (in percent).
Normative money multiplier- an indicator of the potential ability of commercial banks to multiply the money supply. It is calculated as the reciprocal of the reserve requirement set by the central bank.
O
Bond- a security that represents an obligation of the issuer to repay the debt after the expiration of the period indicated on it with the payment of interest, including coupons, if any, in the bond.
exchange rate- the rate that is set by commercial banks in transactions with clients for foreign exchange transactions through their operating cash desks and currency exchange offices.
Required reserves of commercial banks- funds of banks which they are obliged to keep in their accounts with the central bank of the country in accordance with the norms of required reserves established by the central bank.
government bonds- Bonds of internal state loan.
REPO transactions(from the English repurshase agreement - repurchase agreements). Repo transactions (RP) are agreements on the repurchase of securities sold by a bank (or other credit institution) to an individual or legal entity, which are in the portfolio of a bank (credit institution) at a higher price. The economic meaning of repo operations is that a bank (or other credit institution) is provided for a period not exceeding one day (or another period established by the agreement) with a loan secured by securities, upon repayment of which the bank pays loan interest.
Operations related to the movement of capital- represented by a group of transactions consisting of direct and portfolio investments, credit transactions (for a period of more than 180 days) and transactions related to the movement of property rights.
The main property of the product- the unity of use-value and value, since a product that has use-value becomes a commodity when it is produced for sale. Accordingly, a commodity always has both a cost and a price without which the commodity does not exist.
Official exchange rate- the national currency rate set by the central bank. The official exchange rate is uniform and does not have a buyer's rate and a seller's rate.
Order of payments from the current account- fulfillment by banks of claims to the same client account on the basis of documents received during the day, carried out in a certain order. In particular. currently in Ukraine, the sequence of payments from the current account is as follows: payments by court decision to satisfy claims in connection with injuries received at work, death, as well as claims for the recovery of alimony; payments by court order to satisfy claims regarding severance pay and wages to persons working under contracts, as well as under copyright agreements; payments under other court decisions; payments for settlements with budgets; payments for all other documents, payment for which is made in the chronological order of receipt of these documents.
P
Balance liability(from lat. passivus passive, passive) - the right side of the balance sheet, reflecting the sources of funds, grouped according to their ownership and purpose.
pension funds- credit and financial institutions of non-banking type. They can be public or private. State pension funds are established by law by the government of the country and municipal local governments. Private pension funds emerged as a counterweight to poor public provision. Pension funds operate on a credit basis: first, they attract funds from workers and employees, and then they begin to return them by paying pensions. At the same time, pension funds are also created on a financial basis due to the irrevocable provision of funds to them by their creators. In addition, in a number of cases, pension funds pay disability pensions, survivors' pensions, disability pensions, etc., i.е. those who have not contributed any funds to the pension fund. In these cases, pension funds also operate on a financial basis.
Primary liquidity reserves- such assets of the bank that at any time can be used by it without loss to maintain its liquidity: cash and cash equivalents.
Primary securities market- the market where securities are sold by their issuers.
floating interest rate- the rate, the size of which is reviewed at regular intervals during the term of the loan.
floating exchange rate- the exchange rate, which changes under the influence of supply and demand in the foreign exchange market.
Planned payments- a method of payment in which planned payment periods, one-time amounts of planned payments and the total amount of delivery for a specific period are set. Under such conditions, the volume of deliveries and the amount of one-time planned payments for a separate planning period may not coincide. However, at the end of each month, reconciliation of deliveries and amounts of payments is made and the corresponding recalculation is made, which is finally made for three consecutive months. This method of payment is convenient for those economic entities between which there are constant and frequent deliveries of goods or services.
plastic card- is a key element in the system of electronic payments through ATMs-cashiers, including in the system of the trading network. With the help of plastic cards, automatic cashiers are activated. They, together with the PIN code, identify the user for the vending machine, since the PIN code is also on the card, although it is not visible. In addition, a plastic card is a technical tool for the card user to manage funds on his personal "card" account in a bank.
Payment discipline- is to make payments on time. Accordingly, banks control the timeliness of submitting documents to the bank, the timeliness of debiting funds from payers' accounts and transferring them to the accounts of suppliers (or recipients of funds), and observing the order of payments.
Payment Crisis- a state of the economy when there is a shortage of means of payment in the country. A vivid example of the payment crisis in Ukraine is the payment crisis caused by the liberalization of prices in the country carried out in early 1992 without a corresponding issue of money, which gave rise to a chain of non-payments.
Purchasing power of money- this is the amount of goods and services that can be purchased for one monetary unit at a given time.
Full money- coins of precious metals, the nominal value of which corresponds to the value of the metal from which they are made.
Creeping inflation- characteristic of developed countries. It has low rates of price growth (3-5% per year), which are considered as a kind of economic development stimulator. As prices rise and the purchasing power of the population falls, workers and employees demand (and achieve) higher wages. But an increase in wages automatically leads to a new increase in prices. Ultimately, prices and inflation spiral
Cheap money policy- the policy of the central bank, aimed at increasing the money supply in the country by monetary methods of regulation, in order to increase the growth of investment.
Expensive money policy- the policy of the central bank aimed at reducing the money supply in the country with the help of monetary regulation instruments in order to reduce inflation.
wealth portfolio- the totality of assets owned by an individual. As part of the portfolio of wealth may be cash and cash in bank accounts, securities and other property.
Portfolio investment- investments in shares, bonds and other securities of foreign enterprises, states and international organizations in order to obtain a higher return on capital, in comparison with investments in securities of national issuers.
portfolio approach- considers an individual at a particular moment when he owns certain property (cash, funds in bank accounts, state and private securities, capital in material form (house, cottage, car, yacht, industrial buildings and structures, etc.). and makes decisions about the share of which assets it is more profitable for him to increase in his portfolio at a given time.
Damage to coins- a deliberate increase in the ligature in a silver or gold coin in order to obtain share premium.
consumer credit- a form of credit in which a loan is issued for consumer needs.
"Almost" money- the same as quasi-money.
prime right(English prima rate first rate) - the lowest (base) interest rate at which short-term loans are provided to the most creditworthy and reliable customers with an impeccable financial reputation
Prepayment- a payment that precedes the shipment of goods to the buyer.
Prepayment is contrary to the principles of organization of non-cash payments and the essence of money as a means of payment and creates the buyer the risk of non-shipment of goods by the supplier.
Inflation limits- external and internal, determined by the disadvantage for the issuer to continue issuing new credit money.
Principles of organizing cashless payments- rules for non-cash payments by business entities and banks. Among the principles of organization of non-cash payments, it is worth mentioning: the execution of all non-cash payments through banks, with the consent of the account holder (with the exception of the forced debiting of funds), following the shipment of goods or the provision of services (with the exception of the existing prepayment) and using modern technical means.
Principles of organizing lending- rules for issuing and repaying loans, which include: targeted, differentiated, paid, urgent, secured and contractual nature of lending.
Forced debit- write-off by the bank of funds from the current account on the basis of decisions of the judicial authorities.
Try(lat. probo I test, evaluate) - the quantitative content of the precious metal (gold, silver, platinum and palladium) in the ligature alloy (see ligature), from which jewelry, coins, medals, etc. are made.
Bill protest- a notarized refusal to pay or accept a bill.
Percentage credit- the ratio of the mutually offset amount to the entire amount of funds presented for offset, multiplied by 100.
Interest rate- the same as the rate of loan interest.
Interest rate ex ante- the real interest rate, which takes into account the inflation expectations of the lender and the borrower at the time of signing the loan agreement.
Interest rate ex post- real interest rate, which takes into account the actual changes in the inflation rate at the time of signing the loan agreement.
Direct funding- Direct transfer of financial sources of funds (household savings) from their owners to firms, enterprises and organizations.
Direct investments- represent investments of capital through the creation of branches or subsidiaries abroad, which give the investor the right to participate in the management and control over the activities of a foreign enterprise or firm. The IMF classifies as direct investment such investments of the investor's capital that make up at least 25% of the shares of a foreign enterprise.
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Equilibrium interest rate- the rate of loan interest, which corresponds to such a level of national income at which macroeconomic equilibrium is achieved in the economic system, i.e., equilibrium is observed in the goods market and the money market.
Settlement discipline- represents the execution of settlement documents in accordance with existing requirements.
Settlement check- a check used only in non-cash payments.
Rationing- method of distribution of products per capita, for example, by ration cards, by coupons, etc.
Real interest rate- represents the level of the interest rate that could be at constant prices or a stable national currency.
Real income is the amount of goods and services that can be purchased with nominal money income.
Revaluation(lat. - a prefix meaning renewal, and - I mean, I stand) - an increase in the exchange rate of national money in relation to foreign (national or collective) currencies, caused by an artificial overvaluation of the national currency against other currencies, or the resulting deflation in the country.
Regulatory capital of the bank- the bank's own capital, which is one of the the most important indicators banking activities, the main purpose of which is to cover losses from various risks from banking activities and ensure the protection of deposits, financial stability and stable activities of the bank. The bank's regulatory capital consists of core and additional capital. The amount of the bank's regulatory capital cannot be less than 8% of total assets and certain off-balance sheet funds, weighted for risk and reduced by the amount of the corresponding reserves created for active operations
Rediscounting- rediscounting or re-discounting (from discount - reduction), repeated reduction of the face value of the bill. Rediscounting allows the central bank to rediscount the bills of commercial banks when issuing loans secured by them previously discounted commodity bills.
Register of accounts- a list of accounts indicating their numbers, amounts for each account separately and the total amount of invoices submitted, which are attached to settlement documents submitted to the bank.
Register of checks- a list of checks (with indication of their main details), reflecting the total amount of checks submitted for collection.
Rezana- "fur" monetary unit equal to 1/50 hryvnia kuna.
Reserve currencies- These are, first of all, the national freely-used currencies of individual highly developed countries. However, collective currencies also belong to the reserve currencies. A distinctive feature of reserve currencies is their role as an international means of payment, in connection with which all countries form their foreign exchange reserves (to maintain their international liquidity), primarily in these currencies.
Residents- individuals and legal entities permanently residing and/or carrying out their activities on the territory of Ukraine (and according to its laws); citizens of Ukraine temporarily staying abroad; representative offices, consulates of Ukraine abroad, as well as branches located abroad, but not carrying out entrepreneurial activities.
Exchange rate regime is the order in which it is established and used.
Remedium(lat. remedium - a remedy against something, to prevent something) - a legal deviation of the actual weight and sample of a coin from the established norms. Remedial wear of coins was allowed in different countries from 0.1 to 0.5% of the standard (ligature) weight of the coin, and such coins were still accepted in the internal circulation of the country as full-fledged coins. Accordingly, if the weight of the coin was reduced to a remedium, then such coins were exchanged for new ones of the same denomination as the worn coins presented for exchange. However, if the coin was worn more than it was provided for by the remedium, then it became defective and lost its legal tender.
Under such conditions, a defective coin could be exchanged by the state for a full-fledged coin, but of a lower denomination corresponding to the weight of the defective coin presented for exchange. It follows from this that the costs associated with wearing out the coins within the limits of the remedium were borne by the state.
Restriction(restrictive policy) restriction of something, such as the money supply, in connection with which the volume of lending by commercial banks is limited by increasing the reserve requirement and the central bank discount rate.
Refinancing- the process of repayment by the government of its previously created obligations (in the form of issued government bonds) at the expense of proceeds from the placement of a new issue of government bonds on the financial market.
Market interest rate- the rate that exists in the money market at any given time.
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Savings deposits- demand deposits.
SWIFT(Eng. Society for Worldwide Interbank Financial Telecommunication - Society for Worldwide Interbank Financial Telecommunications) is an interbank organization that transmits information on interbank settlements and sets certain standards for telegraph messages for information transfer.
Free coinage- minting coins at mints from metal provided by any persons.
Freely usable currency- the national currency of the issuing country, which has not introduced any currency restrictions on currency transactions with currency values for either residents or non-residents.
Swap(English - swap) - operations involving the simultaneous purchase and sale of currency for approximately the same amount, but for different periods. Accordingly, in swap operations, options are possible: spot versus forward, or forward versus forward.
seigniraj(English seigniorage - tax on the right to mint coins) - the issuer's income received from the issue of money. The share premium is equal to the difference between the value of the issued nominal money supply and the cost of its production. Taking into account the fact that at present in world practice the intrinsic value (production costs) of one bank note (of any denomination) does not exceed 2.5 cents, it follows that the issuer's share premium from the issue of a one-dollar ticket is 97.5 cents, and, for example, , a hundred-dollar ticket - 99 dollars and 97.5 cents.
Scruple- an old unit of pharmaceutical weight, equal to 20 grains, i.e. 1.24 grams.
Slampflation(eng. - inflation and slump - a sharp drop, crisis) - is characterized by the fact that along with hyperinflation, there is a sharp drop in production and an increase in unemployment.
Modern Quantity Theory of Money and Prices- a theory in which the velocity of circulation of money is a variable (rather than a constant, as in the classical quantity theory), and the relationship between the money supply, real and nominal output and the level of commodity prices is asynchronous. Therefore, the modern quantity theory in its first approximation is the theory of demand for money.
Modern money(in the form of banknotes and coins made of base metals) - do not have their own labor value (have either conditional or imaginary value), but have purchasing power; are not a commodity and an equivalent of value; have a credit nature, being debt obligations of the banks that issued them; represent only a sign of price (in contrast to banknotes, which are a full representative of gold, value and price).
Special Drawing Rights- SDR or SDR (SDR English. Special Drawing Rights) is a collective currency within the IMF. Since January 1, 1999, the SDR basket has included four national currencies: the US dollar, the British pound sterling, the Japanese yen and the euro (which has replaced the German mark and the French franc). The SDR has been issued by the IMF since 01/01/1970 as international reserve and means of payment to settle the balance of payments and maintain international liquidity. From April 1, 1978, amendments to the IMF charter provided for the consolidation of
SDR status of the main reserve currency. Accordingly, the SDR is the quote base not only for any other currencies, but also for other reserve currencies. Being the main reserve asset, the SDR is used only at the level of central banks and international organizations, and its holders cannot be banks or corporations, firms, enterprises. Payment Method- is executed as a payment immediately; with deferred payment; combined payment (up to 30% immediately, and the rest with deferred payment); scheduled payments, when the amount of payments for specific periods is stipulated by the contract, regardless of the amount of supply of goods or services in these periods, and the final settlement is made at the end of the period; in the order of offsetting mutual claims, when the same amount of mutual claims is offset by the partners themselves, and only the amount of the outstanding balance passes through the bank.
Spread(eng. spread the difference between the cost and the selling price) is a term widely used in foreign exchange and credit relations.
Demand for money- the amount of monetary assets in the form of cash and funds in bank accounts that business entities wish to have at a given time in their portfolios of wealth (assets).
Average interest rate- the rate of loan interest, calculated on average over a long period of time, for example, for the entire industrial cycle.
Term deposits- deposits placed in the bank for a specified period.
Loan- the object of the loan in the form of a monetary amount of funds (or in the form of commodities in a civil loan), provided to the borrower for a while.
Loan capital- this is the money capital given on loan to entrepreneurs to service the circulation of their funds in order to obtain income by the creditor in the amount of the average rate of profit. The loan capital of the country is concentrated in banks.
loan account- an account opened by a bank to account for loans issued and their return.
Stagflation- a combination of hyperinflation with a deep economic crisis in which the growth of output has stopped or is stopping.
The value of money- labor costs for their production. For gold coins, these are the costs of extracting the amount of gold that is legally assigned to one monetary unit and the costs of minting coins. For banknotes and banknotes, these are the costs of producing paper and ink, as well as the costs associated with printing money. At present, the cost of producing one banknote of any denomination in the world does not exceed 2.5 cents. Subordinated debt- debt arising from the issuance by the bank of simple unsecured obligations that cannot be claimed from the bank earlier than five years
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Inflation targeting- an inflation management mechanism that provides for a systematic assessment of the level of inflation that it can reach in future (within the forecast period) and regulation of the existing level of inflation to the level established in accordance with the set goal.
Fixed interest rate- (fixed) interest rate, which does not change during the entire period of use of the loan, which is unprofitable for the lender with medium-term and, especially, long-term loans in conditions of inflationary depreciation of money. In these cases, floating (changing) interest rates are set.
Thesaurus(gr. thesaurus - treasure) - the accumulation of precious metals (gold, silver, platinum, and other metals) in private collections in the form of a treasure (i.e., out of circulation). As for collecting modern commemorative and commemorative coins made of gold, platinum and silver, their real value is much lower than that indicated on them. However, the collection and accumulation (in a jug) of coins intended for collection changes their market value over time, which in some cases is tens and hundreds of times higher than both their nominal and, moreover, their real value. In this sense, we can say that collectible coins are being hoarded. At present, hoarding is understood as the accumulation of bank notes outside the banking system - "in capsules".
Current foreign exchange transactions- are reflected in the current balance of payments of the country, a characteristic feature of which (unlike the reporting balance of payments) is the presence of a balance, which, moreover, is subject to daily changes that affect changes in the country's exchange rate. The negative balance (deficit) of the current balance of payments is compensated by other items of the reporting balance of payments. Current foreign exchange operations are represented by trading, non-trading, credit operations for up to 180 days and operations on income received from operations related to the movement of capital.
Current account- an account of an economic entity in a bank, on which all its current receipts and payments are taken into account. At the same time, the funds on the current account can be used by its owner only on the basis of instructions to the bank in which the account is opened.
Telebanking- remote customer service of the bank using telephone communication channels. "Telebanking" is used to carry out a number of operations on the client's account related to the payment of public utilities.
Shadow economy- activities of business entities outside the legal field of the country.
Type of monetary system- such a device of money circulation and circulation in the country, which is determined by the nature and essence of the money circulating in it and is legally fixed by the state.
Types of monetary systems- differ in the type of material from which money is made (metal and paper), the number of metals that act as a universal equivalent (bimetallism and monometallism), the type of issue of banknotes and banknotes (credit and fiduciary), the nature economic system(market and non-market and, accordingly, open and closed), etc.
Trading foreign exchange transactions- export-import transactions involving the existence of current accounts in foreign currency (with authorized banks of Ukraine) and related to the implementation of international settlements, with the purchase and sale of foreign currency on the Interbank Foreign Exchange Market of Ukraine (IMRU), with deposit and loan operations, for a period of up to 180 days.
transactional(eng. transaction - transaction) checking deposit - a deposit created for settlements for goods and services, which can only be managed with the help of checks.
Transfer payments(English transfer payments - transfer of rights) - a form of redistribution of part of the state budget revenues in the form of payments to citizens of the country (and private entrepreneurs) of funds from the state budget. Transfer payments do not represent any compensation for labor services rendered to the government.
Draft- unaccepted bill of exchange.
Drawer- the person who issued the bill of exchange (draft).
Drawee- a person liable to pay a bill of exchange (draft).
Trust operations- see trust operations.
trust company(English trust trust) - trust companies that accept in trust management the property of principals in material and monetary form. In accordance with world practice, trust companies are required to transfer 90% of the income received to the trustee, and 10% can be kept for business development.
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Narrow money supply- money supply by aggregates М0 and М.
Unga- an old Russian measure equal to 24 scruples (see scruples).
Equation of exchange- a mathematical expression of the quantitative theory of money and prices, derived by I. Fisher. The exchange equation has the form MU = RU and reflects a simple exchange dependence: how many goods are sold - so many are bought.
Discount rate- the rate of rediscounting and refinancing, set by the central bank of the country for loans.
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fiduciary issue(from lat. - a transaction or agreement based on trust) - the issue of bank notes that have no connection with gold, and based on the public's trust in the issuer (the government and its central bank).
Fixing- order of establishment. such a level of the exchange rate, which takes into account by the end of the working day of the exchange, all declared transactions for the purchase and sale of this currency, taking into account the maximum convergence of the conditions of customer orders with the conditions of transactions.
Fictitious capital- securities - shares, bonds, etc.
The value of fictitious capital depends on the market value of the securities. Unlike real capital, the amount of profit from which depends entirely (ceteris paribus) on the amount of capital, fictitious capital is characterized by an inverse relationship - the amount of fictitious capital depends on the amount of income on this capital.
Money market financial intermediaries- banks, exchanges, non-bank credit institutions. However, since these organizations do not mediate in the distribution of financial resources, in essence they, functioning in the money market, are intermediaries of the money (financial) market.
Fiscal issue- same as fiduciary issue.
Financial companies- companies operating on the basis of raising funds, mainly on a non-refundable basis and providing them on loans to third parties.
Financial market- the money market, in which money is exchanged for monetary assets at the opportunity cost of assets. Financial - the money market is called because on it various investors can acquire funds (resources) for economic activities. "Financial market" - the collective name of such money markets as the foreign exchange, stock market and loan capital market. A feature of the money (financial) market is that it is characterized, first of all, by the frequency of operations, and not by a specific geographical place of its existence. Secondly, since modern money is not a commodity, it has no price (without which there is no commodity) and is not produced for sale, money is not sold or bought on the market (in the traditional sense of sale and purchase acts), but is exchanged for money. assets at the opportunity cost of these assets, expressed in the nominal rate of loan interest.
Stock market- a market in which the object of purchase and sale are stock securities - stocks and bonds.
Stock securities- property titles in the form of shares, government and corporate bonds, with the help of which their issuer creates or increases share capital (authorized fund). Stock securities, unlike commercial securities (checks, bills of exchange, drafts, etc.), are issued to create funds and therefore are issued in packages, and not in single copies, which is typical for the issuance of commercial securities.
Form of non-cash payments- method of document circulation and payment. There are such forms of non-cash payments: settlements in the order of settlements by payment orders, payment requests, payment requests-orders, checks, in the order of offsetting mutual claims and letters of credit.
money shape- the external manifestation of their essence. Valid (gold) money had two forms - the form of gold bars and the form of gold coins. Banknotes (both changeable and non-changeable for metal) had cash and non-cash forms. Modern credit money in the form of banknotes and coins made of base metals also has two forms - cash and non-cash.
Loan form- the external manifestation of its essence, the way of its existence, internal organization. There are banking, commercial, consumer, mortgage, state, international and civil forms of credit.
Fisher formula- equation of exchange (MU=RU).
Function- the simplest manifestation of one of the sides of the essence of the subject.
Functions of real money- measure of value, medium of exchange. means of treasure formation, means of payment and world money.
Functions of commercial banks- creation and destruction of new credit money and other credit instruments of circulation; mobilization of cash receipts, incomes and savings and their transformation into loan capital; an intermediary in the placement of loan capital (including an intermediary in the provision of loans); intermediary in payments between individuals and/or legal entities.
Credit functions- redistributive and the function of replacing cash with credit operations of the bank (the function of creating credit instruments of circulation), objectively revealing the essence of credit in all its forms.
Functions of non-bank credit institutions- the functions of an intermediary in the implementation of loan capital, the function of mobilizing income and savings and turning them into loan capital, and the function of a provider of specialized non-banking services.
Functions of modern money- medium of circulation, measure of value, means of payment and means of preserving and accumulating value.
Interest rate functions- distributive-stimulating, saving the value of loan capital and investment.
Functions of the central bank- function of the emission center of the country; body of monetary regulation of the economy; government banker; "bank of banks"; methodological and methodological center of commercial banks and non-bank credit institutions and, finally, the function of control and supervision over the activities of commercial banks and non-bank credit institutions.
Lb- an old measure of weight, equal to 409.51 g.
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Hartal money- from the word "harta" - a sign, i.e. money without value, made of paper, legally put into circulation and generally recognized by society. They have a coercive purchasing power in the form of the face value of banknotes and base metal coins. The real purchasing power of money put into circulation is determined by the market.
Lame currency- a monometallic type of monetary system in which the role of a universal equivalent was performed by one metal - gold or silver. However, another, less valuable metal, such as silver or copper, could be used along with it. Under such conditions, the monetary system was on two metal legs: a golden (long leg) that served as a universal equivalent and was used both within the country and on the world market, and a silver (short leg) that did not play the role of a universal equivalent and was used only within the country as exchange metal.
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Price- this is the amount of money that is paid for a product or service at a particular point in time.
The value of money- the same as the purchasing power of money.
Securities- a general term for stock securities (stocks and bonds), some other financial instruments of the stock market, such as treasury and municipal bills and bonds, as well as commercial papers (checks, bills, drafts, etc.)
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Partially used currencies- currencies, issuing countries that have introduced currency restrictions on currency transactions with currency values only for residents.
Fractional Bank Reserves- reserves, in the form of highly liquid assets of a commercial bank, providing only part of the coverage of its deposits.
Check- an unconditional order of the drawer of the check to the bank to pay the amount indicated in the check to the person indicated in it.
check deposit- a deposit placed in a bank, which its owner can dispose of only with the help of checks.
Check holder- a person legally in possession of a check received from a drawer or endorser in payment for goods or services.
Check drawer- a person who has handed over a correctly executed check to the seller of goods or services.
black filing cabinet- collection file No. 2, in which overdue payment requests were placed in the presence of an acceptance form of payment.
Net taxes- Taxes received by the budget minus transfer payments.
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Broad money supply- characterized by any of the monetary aggregates outside of M.
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The evolution of money- process historical development nature, essence and forms of money.
Expansion(expansionary policy) - the expansion of something, for example, the volume of money supply, in connection with which a policy of cheap money is introduced (interest rates and the required reserve ratio are reduced).
Export- Export of goods and services abroad.
Exporter- a person who exports goods and services.
ECU(English European Currency Unit) - European currency unit) - the former collective currency of the European Monetary System (EMS). The ECU existed for almost 20 years (from 1979 to 1999) and ceased to exist with the introduction of the non-cash EUR. In terms of its use and emission technique, the ECU was similar to the SDR. However, the emission of the ECU, unlike the SDR, was half backed by gold and US dollars. The emission of the ECU, as well as the SDR, was carried out in the form of credit records on the accounts of the central banks of the EMU member countries and, accordingly, did not have samples of monetary units and therefore, like the SDR, was considered as m.d.u.
Electronic money- money that exists in the form of records on "card" accounts in banks and therefore represents a type of non-cash form of money and is used with the help of plastic cards in payments for goods and services.
Element of the monetary system- a separate, legislatively introduced by the state, characteristic and stable for a given monetary system of the country, sign.
Share premium- the same as seigniorage.
Issue of cash- issuance by the country's central bank of banknotes and coins made of base metals into circulation in excess of their quantity that is in circulation.
Issue of non-cash money- the creation of new credit money by commercial banks when lending to their customers with crediting loans to their current accounts.
Offset efficiency- the same as the offset percentage.
Fisher effect- the relationship between the inflation rate and the nominal rate of loan interest.
Agrarian price parity - the ratio between the value of agricultural and industrial products, in which the exchange between the city and the countryside is mutually beneficial.
An administrative monopoly is a monopoly that arises in a command economy due to the concentration, at the direction of the planning authorities of the state, of the production of certain products at one or a small number of enterprises.
Assets are everything of value that a person, company or government owns.
Excise - a tax levied on the buyer when purchasing certain types of goods and is usually set as a percentage of the price of this product.
A joint-stock company (JSC) is an economic organization, the co-owners of which can be a large number of owners of funds, each of which receives the right to part of its property and profits, while at the same time answering for its obligations only within the amounts once spent on the purchase of shares.
A share is a security sold to an investor in exchange for funds received from him for the development of the company and confirming his rights as a co-owner of the company's property and its future income.
Barter is the direct exchange of one good or service for another without the use of money.
Poverty is the standard of living of a family at which its incomes allow it to acquire only a small part of the set of goods and services standard for a given country, which forms the basis for determining the cost of living in a given country.
Non-cash funds - amounts kept on the accounts of citizens, firms and organizations in banks and used for settlements by changing information in documents confirming to whom what amount of such funds belongs.
Unemployment is the presence in the country of people who are able and willing to work for hire, but cannot find a job in their specialty or find a job at all.
Benefits - everything that is valued by people as a means of satisfying their needs.
The wealth of the family is the property of the family, free from debt.
Accounting profit is the difference between the sales revenue and the firm's accounting costs.
Accounting costs - the costs associated with the use of resources for the needs of the firm, acquired by it from other firms or citizens.
Budget - a consolidated plan for collecting revenues and using the funds received to cover the costs of federal or local government bodies.
Gross national product is the total market value of all final goods and services produced in a country in a year.
Currency (exchange) rate - the price of one national monetary unit, expressed in monetary units of other countries.
The supply value is the volume of goods of a certain type (in natural terms), which sellers are ready (want and able) to put on the market within a certain period of time at a certain level of the market price for this product.
External (side) effects - damage (or benefit) from the production of any good that people or firms that are not directly involved in the sale of this good have to bear (or can receive).
External public debt - the debt of public authorities to governments, international banks and financial organizations that have provided money on a loan on the basis of government agreements.
Domestic public debt - the debt of government authorities to citizens, banks and firms of their country, as well as to foreigners who have bought securities of domestic loans.
Sales proceeds - the amount of money received from the sale and is equal to the product of the number of goods sold and the price at which they were bought.
Hyperinflation is a situation in the economy when the growth of the general price level in the country during the month exceeds 50% and this continues for more than three months in a row.
Government securities - obligations of the state to return the borrowed amount plus interest for the use of this money.
Public debt - the amount of loans taken by government agencies and not yet returned to creditors.
The border production possibilities- the volume of production that can be achieved by the country with the fullest use of its available production resources.
Free goods - goods, the available volume of which is greater than the needs of people, and their consumption by some people does not lead to a shortage of these goods for others.
Money capital - part of the savings of families, which is transferred on a paid basis to firms for the purchase of production capital by them.
Money is a special commodity that: 1) is accepted by everyone in exchange for any other goods and services, 2) allows you to uniformly measure all goods for the needs of exchange and accounting, and 3) makes it possible to save and accumulate part of current income in the form of savings.
Deposits - all types of funds transferred by their owners for temporary storage to the bank with the right to use this money for lending.
Defects (weaknesses) of the market - the inability of market mechanisms to solve some economic problems in general or in the best way.
Shortage - a situation in the market when buyers at the current price level are ready to buy a larger volume of goods than sellers at this price are willing to offer for sale.
State budget deficit - financial situation, arising when the state plans to carry out expenses for an amount greater than it can actually receive income from all types of taxes and payments.
Dividends - part of the net profit of a joint-stock company, which is paid to its shareholders in proportion to the value of their shares.
A directive national economic plan is a way of distributing limited resources on the basis of government assignments that are mandatory for all enterprises in the country to fulfill.
The natural rate of unemployment is a situation where only frictional and structural unemployment exists in a country.
Natural monopolies are firms that control the entire market for a particular product or service by virtue of having a unique
A will is a legally executed gift of wealth that comes into force after the death of its owner.
Borrowed funds(credit) - funds that are provided to the company for use for a strictly fixed time and under the fee established in the loan agreement.
The law of exchange is the relationship between the average amount of money that a country needs to ensure normal monetary circulation, and: 1) the average prices of goods and services; 2) the quantity of these goods and services; 3) the speed of circulation of money.
The law of supply - an increase in prices usually leads to an increase in the quantity supplied, and a decrease in prices - to its decrease.
The law of demand - an increase in prices usually leads to a decrease in the quantity demanded, and a decrease in prices - to its increase (ceteris paribus).
Engel's law - as household incomes rise, the share of spending on food usually decreases, on consumer goods it stabilizes, and on education, medicine, recreation and entertainment - increases.
Land - all types of natural resources available on the planet and suitable for use in the production of economic goods.
Excess (overstocking) - a situation that occurs in the market when, at the existing price level, sellers offer for sale a larger volume of goods than buyers are willing to buy at that price.
Import - the purchase by residents of one country of goods manufactured in other states.
Investing is the transfer by the owners of savings of their funds for use by commercial firms or the state in order to generate income.
An individual offer is an offer with which an individual seller enters the market.
Individual demand - the volume of purchases that an individual buyer is ready to make in the market at a given price level.
Inflation - the process of raising the general level of prices in the country, leading to the depreciation of money.
Information - all the information that people need for conscious activity in the world of the economy.
Capital is all that production and technical apparatus that people have created from the substance of nature to increase their strength and expand the possibilities of producing the goods they need.
Cartel - a method of monopolizing the market, consisting in the conclusion of an agreement between manufacturers homogeneous goods on the division of the market between them and the coordination of sales volumes and prices of each of the members of the cartel.
The command system (socialism) is a way of organizing economic life, in which capital and land are actually owned by the state, which also distributes all limited resources.
A commercial bank is a financial intermediary engaged in: 1) accepting deposits; 2) granting loans; 3) organization of settlements; 4) purchase and sale of securities.
Competition - economic rivalry for the right to obtain a larger share of a certain type of limited resources.
Indirect tax - a fee in favor of the state, which is taken from citizens or economic organizations only when they carry out certain actions.
Credit emission - an increase by a bank of the country's money supply by creating new deposits for those customers who received loans from it.
A loan agreement is an agreement between a bank and the one who borrows money from it (the borrower) that defines the obligations and rights of each of the parties, and above all: the term for granting a loan, a fee for using it and a guarantee of a refund to the bank.
Creditworthiness - the availability of the borrower's readiness and ability to fulfill their obligations under the loan agreement on time, that is, to return the borrowed amount and pay interest for its use.
Liquidity - the degree of ease with which any assets can be turned into money by the owner.
Lobby - a form of legal defense of the interests of a certain group of firms or citizens of the country through the formation of factions of deputies in the legislature.
Manager - hired manager of the company, accountable to its owner.
The price mechanism is the formation and change of market prices under the influence of a clash of interests between buyers and sellers who make their decisions without outside coercion.
Market monopolization - a situation where one of the sellers or buyers accounts for such a large share of the total sales or purchases in a particular commodity market that he can influence the formation of prices and terms of transactions to a greater extent than other participants in this market.
A monopolist is a firm that is the only seller in the market and therefore its individual demand curve coincides with the market one.
"Price scissors" - the degree of violation of price parity, that is, the difference in the growth rates of prices for agricultural products and industrial products for the countryside.
Cash - paper money and small change.
Taxation is a mechanism for withdrawing part of the income of citizens and firms in favor of the state to solve national problems.
Wealth inequality - differences in the amount of regularly received nominal income (per family member) and the market value of property owned by families.
Nominal income - the amount of money received by a citizen or family as a whole for a certain period of time.
Normal profit - income that could actually be received by the owner of capital when investing funds not in his own business, but in other commercial and financial projects with the same level of risk.
Normal goods are goods for which the quantity demanded increases with an increase in the income of buyers.
Loan collateral (collateral) is the property of the borrower, which can be seized from him by the bank and sold to cover those debts of the borrower that he himself cannot cope with.
The total utility of a good is the total benefit (benefit) received by a person, firm or country from the use of the entire volume of goods of a certain type.
Public goods are goods or services that people share and that cannot be the exclusive property of anyone.
Total costs - the cost of acquiring the entire volume of resources that the company has already used to organize the production of a certain volume of products.
The volume of need is the amount of goods of a certain type that a person would like to receive to satisfy his needs, if these goods were available free of charge and without restrictions.
Limited (economic) goods are the means of satisfying human needs that can be created only by spending factors of production and are obtained, as a rule, only on the basis of exchange.
Oligopoly is a market in which competition occurs only between a small number of firms that have forced out other rivals.
An industry is a group of firms producing similar or identical products.
variable costs- these are the costs that grow (decrease) with any increase (decrease) in production volumes.
Absorption - a method of monopolizing the market, which consists in buying up competing firms and including them in the firm striving to become a monopolist.
The purchasing power of money is the amount of goods and services that can be purchased with a certain amount of money at a given time.
fixed costs- these are those costs that remain the same with small changes in the volume of production of goods or services.
Needs - a specific form of manifestation of human needs, depending on living conditions, skills, traditions, culture, level of development of production and other factors.
Duty - a fee levied by the state from citizens and business organizations for providing them with a certain type of service or issuing a permit to carry out certain activities.
The right of private property is the recognized and legally protected right of an individual to own, use and dispose of a certain type and amount of limited resources (for example, a piece of land, a coal deposit or a factory).
The marginal (marginal) utility of a good is the benefit (benefit) received from an additionally used unit of a good.
Marginal (marginal) costs - the real amount of costs, which costs the production of each additional unit of output.
Supply - the dependence of the quantities supplied on the market for a certain product during a certain period of time (month, year) on the price levels at which this product can be sold, which has developed in a certain period of time.
An entrepreneur is a person who, at his own peril and risk, and to a large extent at his own expense, creates a company.
Entrepreneurship is a special kind of service rendered to society, consisting in the creation of new commercial organizations called firms for the production and distribution of vital goods.
Profit - the difference between the proceeds from the sale of goods or services and the costs necessary for the production and organization of the sale of these goods and services.
A preferred share is a security whose owner has the right to a fixed dividend regardless of how much net profit the company actually received, but does not have the right to participate in its management.
The principle of absolute advantage - countries benefit from trade with each other if each of them specializes in the production of goods that it can produce with absolutely less of its resources than its own. trading partners.
The principle of relative advantage - it is more profitable for each country to export those goods for which its selection prices are relatively lower than in other countries.
Progressive taxation of income is a financial mechanism used to solve two problems: to raise funds for the needs of the country and to smooth out differences in the levels of well-being of families.
Living wage - the amount of money necessary for a person to purchase the amount of food that allows him to survive, as well as to meet the minimum
Productivity - the amount of benefits that can be obtained from the use of a unit of a certain type of resource for a fixed period of time.
Derived demand - the demand for factors of production, predetermined by the demand for goods and services for the creation of which these resources are used.
Production is the process of using labor and material resources to create goods or services.
Protectionism is a state economic policy, the essence of which is the protection of domestic producers of goods from competition from firms in other countries by establishing various kinds of restrictions on imports.
A trade union (trade union) is an organization that represents the common interests of employees of certain professions or a certain industry in negotiations with entrepreneurs.
Direct tax - a fee in favor of the state, levied on each citizen or business organization.
Work force - total strength citizens of the country of working age who have a job, and citizens who cannot find work for themselves.
The equilibrium price is the price at which the volume of goods that manufacturers (sellers) agree to offer for sale at this price and the volume of goods that buyers agree to buy at this price coincide.
Distribution - the provision of resources between firms, and produced goods - between people in accordance with some criteria by which these people are entitled to receive such benefits.
Real income - the amount of goods and services that a citizen or family can purchase in a certain period of time with their nominal income.
Reserve requirements - the mandatory proportion of fractional reserves established by the central bank of the country.
Rent is the general name for the income of land owners and owners of other factors of production, the supply of which is rigidly fixed.
Market - all activities associated with the sale and purchase of goods of a certain type in a certain region or different regions, where goods can be delivered in the usual way.
Market of monopolistic competition - a situation characterized by the fact that, in order to satisfy the same need, sellers begin to offer buyers many varieties of substitute goods with significant differences, but each variety is offered to the market by only one seller.
Labor market - a set of economic and legal procedures that allow people to exchange their labor services for wages and other benefits that firms agree to provide them in exchange for labor services.
The market of pure (perfect) competition is a situation characterized by a clash in the competition for the money of buyers of many manufacturers of the same type of goods, none of which has control over such a market share in order to be able to influence sales volumes and market price in their own interests.
A pure monopoly market is a situation where there is only one seller in the market.
Market supply - the total supply of goods on the market by all sellers.
Market demand is the total volume of purchases that all buyers are ready to make in the market at a given price level.
Savings - the balance of income after payment of all expenses associated with current consumption.
Velocity of money is the number of times each monetary unit participates during the year in securing any transactions.
Weaknesses (imperfections) of the market - the inability of market mechanisms to solve some economic problems in general or in the best way.
A mixed economic system is a way of organizing economic life in which land and capital are predominantly privately owned, and the distribution of limited resources is carried out both by markets and with significant state participation.
Equity - money that is provided to the company in exchange for the right to co-ownership of its property and income, and therefore, as a rule, are not refundable and generate income that depends on the results of the company's work.
Aggregate supply - the total amount of final goods and services that firms in the country can and are ready to offer to the market for a certain period of time at: 1) the price level prevailing in the country; 2) existing technology; and 3) available resources of all kinds.
Aggregate demand - the total amount of final goods and services of all kinds that all buyers of the country are willing to purchase during a certain period of time at the prevailing price level.
Specialization is the concentration of a certain type of activity in the hands of a certain person or economic organization.
Demand - the dependence of the quantities of demand in a given commodity market on the prices at which goods can be offered for sale that has developed over a certain period of time.
Wage rate - the amount of money paid to an employee for labor services provided to them during a certain period of time (hour, shift or month) or necessary to perform a certain amount of work (for example, the manufacture of one part).
The cost of living is the amount of money that it costs to acquire a standard set of goods and services for most families in a given country over a certain period of time (usually a month).
"Shadow economy" - economic activity carried out in such a way as not to pay taxes to the state.
Customs duty - a tax levied in favor of the state treasury from the owner of a foreign-made product when this product is imported into the country for sale.
Current (perpetual) deposits - funds transferred by their owners for temporary storage to the bank with the right to use this money for lending and the owner of the funds retaining the right to withdraw this money from the bank at any time without prior notice.
A commodity is a material object useful to people and therefore valued by them as a blessing.
Trade margin - set trade organization markup on the price at which the product is sold by the manufacturer.
Trade is a voluntary and mutually beneficial exchange of the results of the specialized production of goods.
The traditional economic system is a way of organizing economic life in which the land is in common ownership of the tribe, and limited resources are distributed in accordance with long-standing traditions.
Transactional (organizational-contractual) costs - the time, effort and money spent on finding a supplier of resources or services, concluding an agreement with him on prices and other terms of the transaction and monitoring that it is completed.
Transfer - a sum of money transferred by the state to the poorest citizens to improve their standard of living and formed from funds seized with the help of taxes from wealthier citizens.
Labor is the use of the mental and physical abilities of people to carry out work related to the production of economic goods.
The burden of labor is a measure of the physical and nervous complexity and tediousness of performing professional duties.
A service is an intangible good that has the form of an activity that is useful to people.
Factors of production - the resources used by people to create the benefits of life.
Physical capital - buildings, structures, machines, ameliorative systems used to transform the substance of nature into benefits useful to people with the help of technology.
A financial intermediary is an organization that provides services to citizens and firms, helping the former to place their savings with the greatest benefit, and the latter to receive additional funds with minimal effort.
The financial market is the market in which the money needed to acquire the physical capital of firms is bought and sold.
Firm finances - ratio between monetary expenses and cash receipts of the firm.
A firm is an economic organization created specifically to produce goods and sell them on the market for profit to their owners.
Choice price ( opportunity cost) - the value of the most preferred of the benefits, the receipt of which becomes impossible with the chosen method of using limited resources.
The price of money capital is the amount of income (percentage) that the firm must provide to the owners of savings so that they agree to provide it with these savings for the implementation of commercial projects.
A security is a document that can be bought or sold in connection with the fact that it certifies the rights of its owner to a part of the property and income of the organization that issued this security.
Fractional reserve - the proportion of deposits made to the bank, which he must and can constantly have at his disposal in order to be able to fulfill his obligations to depositors in normal business conditions.
Human needs - the range and volume of goods that people would like to receive to meet their needs, if these goods were available free of charge and without restrictions.
Human capital - knowledge and skills accumulated by a person as a result of training and previous labor activity and affecting the possibility of his employment and the level of salary received.
Net profit- part of the profit remaining at the disposal of the economic organization after paying taxes and other obligatory payments.
Economy - 1) the activities of people aimed at creating the benefits they need; 2) a science that studies the behavior of people in the process of creating, exchanging and consuming the goods they need.
Economic profit is the difference between sales revenue and economic costs.
Economic efficiency - a way of organizing production, in which the cost of producing a certain amount of products is minimal.
Economic systems - forms of organization of the economic life of society, differing in: 1) the method of coordinating the economic activities of people, firms and the state, and 2) the type of ownership of economic resources.
Economic growth is a steady increase in a country's productive capacity.
The economic cycle is a period of time during which the country's economy goes through two main phases: boom and bust.
Export - sale to residents of other countries of goods produced by sectors of the domestic economy.
Price elasticity of supply - the scale of change in the quantity supplied (in%) when the price changes by one percent.
Price elasticity of demand - the scale of change in the quantity demanded (in%) when the price changes by one percent.
An issuing bank is a bank that has the right to issue (issue) national monetary units and regulate the money circulation in the country.
Issue of money - issuance by the state into circulation of an additional amount of banknotes.
Income effect - with a decrease in price (or an increase in income), the product becomes cheaper in relation to the total income of a person, and therefore the buyer is able to purchase this product in larger quantities without abandoning his other usual purchases. And vice versa.
Economies of scale - a situation where the firm has the ability to increase the volume of its output to a greater extent than the increase in the volume of all resources used by it.
Abstraction- a method of scientific research, excluding from the analysis everything accidental (private, secondary) and finding the essential, constant in the object under study.
Accelerator- coefficient opposite to the multiplier; characterizes the impact of the growth of national income on the growth of investment (see Multiplier).
budget deficit- the excess of government spending over its revenues.
State regulation of the economy- state intervention in economic processes by influencing the functioning of market mechanisms by administrative (legislative), economic (currency-financial, monetary, budgetary-tax, etc.) methods and levers.
Demonopolization- elimination of state or other monopoly, dictating its conditions to the market.
"Smith's Dogma"- assessment of the theory of reproduction by A. Marx due to the fact that Smith's "price of the annual product of labor" is reduced entirely to income, i.e. eliminates the accumulation associated with the need to resume the reproduction process and expand its scale.
"The Iron Law of Wages"- follows from the theory of population of T.R. Malthus and means that due to the natural growth of the population (respectively, the outpacing increase in the supply of labor) and the decreasing fertility of the land, the level of wages in society will supposedly not be able to grow, invariably remaining at a low level.
"Clark's Law"- assessment of the concept of J. B. Clark on the distribution of income based on the principles of marginal analysis of the prices of production factors; according to this "law", the incentive to increase a factor of production is exhausted as the price of this factor begins to exceed the possible income of the entrepreneur.
"Say's Law"- the concept of J.B. Say about the unimpeded and complete implementation of the social product, i.e. crisis-free economic growth; in accordance with this “law”, when society achieves and observes the principles of “laissez faire”, production (supply) will generate adequate consumption (demand), i.e. the production of goods and services necessarily generates income for which these goods and services are freely sold due to flexible and free pricing in the market.
"Gossen's Law"- the main theoretical principles of marginalism, one of the predecessors of which was G. Gossen; There are two "Gossen's laws", of which the first states that with an increase in the availability of a given good, its marginal utility decreases, and in accordance with the second, the optimal structure of consumption (demand) is achieved when the marginal utilities of all consumed goods are equal.
institutionalism- one of the modern directions of economic thought, which was formed in the 20-30s. 20th century as an alternative to the neoclassical direction of economic thought; main feature it is the study of the totality of socio-economic factors (institutions) considered in interconnection and interdependence and in a historical context, as well as the idea of social control of society over the economy.
Keynesianism- economic doctrine of the necessity and importance of state regulation of the economy through the widespread use by the state of fiscal, monetary policy and other active measures to influence the market mechanism.
Classical political economy- the direction of economic thought (the period from the end of the 18th to the second half of the 19th century), whose representatives debunked the protectionist ideas of mercantilism and laid the scientific basis for methodological and theoretical research market economic relations; the main feature of the direction is the promotion of the ideas of "pure" economic theory and the expediency of "full laissez faire", i.e. absolute non-interference of the state in business life and the mechanism of a self-regulating economy.
Quantity Theory of Money- a theory that proves:
a) according to the orthodox version of the "classics", the dependence of changes in prices for goods solely on the amount of money in circulation;
b) according to the “neoclassicists”, the possibility of adjusting prices for goods due to the cost of monetary material, the variable level of the velocity of money circulation and the amount of commodity mass, and also taking into account the degree of liquidity of money.
Competition is monopolistic- a market situation in which the degree of increased interchangeability of competing products, i.e. “product differentiation” allows the seller to control the level of supply and price and achieve an absolute monopoly on his own product, but at the same time he (the seller) continues to be subjected to competition from other sellers with more or less imperfect substitutes.
Competition is imperfect- a market situation in which a small number of large producers (sellers) get the opportunity to influence the level of the market price.
perfect competition(free, pure or complete) - a market situation with many sellers and buyers of homogeneous products that cannot influence the price level in the market.
"Marshall's Cross"- a graphic representation of the intersection of the demand curve and the supply curve, at the point of intersection of which an equilibrium is established between them, as well as an equilibrium, i.e. stable price.
"Phillips Curve"- an empirical curve that characterizes the relationship between the annual percentage change in wages in monetary terms and the level (shares) of unemployment.
"Indifference Curves"- empirical curves reflecting the conservation of the total utilities of consumed goods in various combinations of their combinations and the preference for some combinations over others.
Liquidity- the ability of material resources, other resources to quickly turn into money; the ability of an enterprise to pay its obligations on time, to turn balance sheet assets into money.
Macroeconomics- the economy as a whole or its most important components; a branch of economic theory that studies the economy as a whole or its main components.
marginalism(marginal economic theory) - a generalization of ideas and concepts, which is based on the study of marginal economic values as interrelated phenomena of the economic system at the micro and macro levels.
"Margin Revolution"- occurred in the last third of the XIX century. transition from the values of the "classical school" to the values (theoretical and methodological principles) of marginalism.
Mercantilism- the direction of economic thought (the period of the 16th - 18th centuries), whose representatives identified the wealth of the country with money and considered them as the most important means economic growth, and the source of wealth was seen in foreign trade, in ensuring an active trade balance; the main feature of the direction is the propaganda of the ideas of the protectionist economic policy of the state, i.e. his participation in the management of the economic system.
metal money theory- a theory that interprets the conditionality of the value of money by the weight of a coin to be minted by the state.
Microeconomics- a section of economic theory that studies economic units, such as firms, any individual economic objects or phenomena.
Monetarism- an economic theory based on the decisive role of the money supply in circulation in the implementation of the policy of stabilizing the economy, its functioning and development.
Monopoly- an enterprise or group of enterprises that has a dominant position in the market, which allows them to control and determine prices; a form of market controlled by one or more firms.
Monopoly price- the type of price set by the monopoly. Depending on the goals, a monopoly can set monopolistically high and monopolistically low prices.
Monopsony- a situation where there are a lot of small sellers and one single buyer in the market.
Multiplier- multiplier; a category used in economic theory to characterize and define the various relationships where the multiplier effect takes place. In particular, in Keynesianism, a multiplier is a coefficient that characterizes the dependence of a change in income on a change in investment.
"Invisible Hand"- a concept introduced into scientific circulation by A. Smith, according to which such a correlation is assumed in the interaction of economic entities and the state, when the latter, without counteracting objective economic laws, does not interfere in the process of "natural", i.e. free functioning of the market mechanism.
Money neutrality- the theoretical position of the "classics", simplifying the essence of the monetary product to a certain technical means, convenient for exchange, and leading to an orthodox version of the quantity theory of money.
"Neoclassical synthesis"- the term of P. Samuelson, used "to denote ... the synthesis of those truths that were established by classical political economy, and the provisions proved by modern theories of income formation"; the broader semantic meaning of this term in the economic literature testifies to the formation of a new universal doctrine of modern economic science.
neoclassical theory- one of the modern directions of economic thought, which was formed in the 90s. 19th century on the basis of both the ideas of economic liberalism and "pure theory" and the principles of system analysis of marginal (marginal) indicators and microeconomic research, being an alternative to classical political economy; from the 30s 20th century the theoretical and methodological tasks of the "neoclassics" were supplemented by macroeconomic research and the problems of social orientation and state regulation of the economy.
neoliberalism- the economic concept of state regulation of economic processes on the principles of achieving free (“pure”) competition of entrepreneurs, freedom of markets and other elements of economic liberalism; alternative to Keynesian concept of state regulation of the economy.
nominalist theory of money- a theory that interprets the conditionality of the value of the money to be minted by the denomination of the coin valuation, which is established by the state.
General equilibrium- a stable state of a competitive economy, in which the consumer maximizes the value of the utility function, and competing producers maximize their profits at prices that ensure the equality of supply and demand.
Oligopoly- dominance of a few large firms in the market.
"Pareto Optimum"(public maximum utility) - a concept intended to evaluate such changes that either improve the well-being of all, or do not worsen the well-being of all with an improvement in the well-being of at least one person; a concept that allows you to make the best decision to maximize profits.
Competition policy- a set of laws and government measures aimed at the maximum possible implementation in practice of the ideal of full (free, clean) competition.
Political Economy- a term introduced into scientific circulation by A. Montchretien, who published in 1615 the "Treatise of Political Economy"; the name of economic science designed to solve problems:
a) the state economy (mercantilist version);
b) free private enterprise (a version of classical political economy).
marginal utility- the ability to satisfy the least intense need; additional utility that a consumer receives from an additional unit of a good or service.
Protectionism- a policy aimed at protecting the national economy from foreign competition by directly or indirectly restricting the import of goods.
"Psychological Law"- the position of J. M. Keynes, according to which "as real income increases, society wants to consume its ever-decreasing part."
Equilibrium price- the price of the goods in case of equality of supply and demand.
Propensity for liquidity- the desire to set aside part of the money in the reserve in the form of banking or securities.
Method for determining total utility- a way to assess the marginal utility of consumed goods; the method is called addictive if the marginal utility of homogeneous goods with each subsequent unit is characterized with a decreasing trend, and multiplicative if the marginal utility of homogeneous goods is multiplied by their number.
"Fair price"- the category of economic doctrine of the canonists, "explaining" the legitimacy of administrative (non-market) pricing and the possibility of "selling a thing more expensive" in order to avoid causing damage to both its "owner" and the entire "public life".
"Theory of imputation"- the theory of pricing of the "Austrian school", the essence of which is the process of consistent intervention of the share of the cost (value) of the good of the "first order" with the goods of the "subsequent orders" used in its production.
Production cost theory- one of the costly interpretations of the theory of value, according to which the value of a product is due to the costs in the production process for the factors "labor", "capital", "land".
"Expectation Theory"- the theory of E. Bem - Bawerk about the mechanism of the origin of interest on capital due to the productive essence of the time factor; specific resource "capital" depending on its size and time of operation, i.e. "expectations", provides a greater or lesser interest on capital.
Labor theory of value- one of the expensive versions of the theory of value, according to which the value of a product is created a certain amount labor expended.
"Phenomena of Excess Power"- position put forward by E. Chamberlin in the theory of monopolistic competition; arises in the process of activity of the seller - a monopolist, seeking to master "known parts of the common market", and is supported by its patents, trade marks, craftsmanship, special talents.
Physiocracy- translated from Greek "the power of nature"; the course of classical political economy (second half of the 18th century) in France, whose representatives proceeded from the decisive role in the economy and consciousness of the national wealth of the land, agricultural production.
Household(economic) system - V. Eucken's concept of two "ideal types" of economic systems: a centrally controlled economy (economic life is regulated by plans emanating from one center) and an exchange economy (each economic entity is guided by its own plans).
"Robinson's Farm"- a term introduced into scientific circulation by K. Menger, used to analyze economic relations and indicators at the level of a separate economic entity (individual), i.e. at the micro level, taking into account the phenomenon of ownership and due to the relative rarity of the benefits of human egoism.
Chrematistics- the term used by Aristotle when referring to the unnatural sphere of human activity; the reckless art of making a fortune through large commercial transactions and usurious transactions.
Pure economic theory- the theoretical and methodological position of the "classics" and "neoclassics", indicating their commitment to "hold on to pure knowledge", "pure theory", i.e. without subjectivist, psychological and other non-economic layers in economic analysis.
Economics- a term introduced into scientific circulation by A. Marshall in his work "Principles of Economics" (1890); the name of economic science, which, according to P. Samuelson, "implies savings or maximization" and is devoted to "the problem of the optimal volume at which profit reaches a maximum."
economic liberalism(policy of laissez faire) - the policy of non-intervention of the state in the economy; a set of economic freedoms; free competition, free enterprise, free prices, free trade, etc.
Supply elasticity- reaction of the offer to price change.
Elasticity of demand is the response of demand to price changes.
"The Veblen Effect"- a description of the situation in which a decrease in the price of a product is perceived by the buyer as a deterioration in its quality or a loss of its “activity” or “prestige” among the population, and then the product ceases to be in consumer demand, and in the opposite situation, on the contrary, the volume of purchases with an increase in price can increase.
Effective Demand- a term from the concept of J. M. Keynes about the potential and stimulated by the state demand for investment and means of production.
EDUCATIONAL INSTITUTION OF THE FEDERATION OF TRADE UNIONS OF BELARUS INTERNATIONAL UNIVERSITY "MITSO"
GLOSSARY OF MODERN ECONOMIC TERMS
R e e n s e n t s:
Doctor of Economic Sciences, Professor, Head of the Department of Economic Theory and Economic Education of the Belarusian State Pedagogical University named after Maxim Tank L. N. Davydenko; Candidate of Economic Sciences, Associate Professor of the Department of International Business of Belarusian State Economic University A. I. Kuradovets
Dictionary of modern economic terms / comp. C48 A.I. Bazyleva [i dr.]. - Minsk: Intern. University "MITSO", 2012. -
ISBN 978-985-497-155-1.
The dictionary contains the terms and concepts of a market economy used in modern economic theory and practice. Terminology covers general economic, budgetary, financial, trade, currency, tax issues. The most important problems of international economic relations are considered: globalization, regionalization, transnational capital and international institutions, free economic zones, international transport corridors.
The dictionary is addressed to MITSO students for practical use in preparing for classes, SORS, control work, testing, course and state exams, as well as all those interested in economic problems.
UDC 33 BBK 65ya2
ISBN 978-985-497-155-1 © MITSO International University, 2012
INTRODUCTION
AT In the conditions of the transition of the Republic of Belarus to a market economy, the development of entrepreneurship and business, the formation of a socially oriented society, it is necessary to create conditions for a qualitatively new system of economic education and economic education of young people. Along with the knowledge that students receive from monographic literature, textbooks, teaching aids, they must master new terms and concepts related to the introduction of market relations. This is especially true for students of economic universities and economic specialties.
AT The educational institution of the Federation of Trade Unions of Belarus International University "MITSO" is preparing in the following specialties: "Management", "Economics of Enterprise Management", "Marketing", "Finance and Credit", "Logistics", " World economy».
Students of these specialties need to know not only the essence of the basic economic terms that characterize market economy, but also the new content of known concepts. To help students in mastering modern economic terminology, the Dictionary of Modern Economic Terms compiled by teachers of the Department of World Economy and Finance of the UO FPB of the International University "MITSO" will be able to help.
The main task of the Dictionary is to assist university students in preparing for practical and seminar classes, SURS, tests, testing, tests, course and state exams.
AT The dictionary lists in alphabetical order the basic concepts and terms of the economy, economic doctrines, economic models, property relations, the basic concepts of a market economy.
Terminology is given on microeconomics, including such concepts as demand, supply, market equilibrium, elasticity of supply and demand, organizational and legal forms of enterprises. Considerable attention is paid to the interpretation of macroeconomic terms: national economy; national accounting system; forms of the national product; national wealth; aggregate demand and supply; macroeconomic instability; money market; fiscal and monetary policy. In the conceptual aspect, finances, the state budget and its functions, taxes, etc. are considered.
The work of the Department of World Economy and Finance on the publication of the Dictionary was carried out on the basis of taking into account its major specialties "Finance and Credit" and "World Economy". In this regard, it presents models of words that are most important in terms of their functioning in the modern economic sphere: finance, banks and business; borrowing and lending; asset Management; securities market, etc.
AT The dictionary deals with the basic concepts of international economic relations that arise between states, regions, companies, financial groups and other participants in economic processes. The basic concepts of international relations are considered both separately in the financial, commercial, industrial sense, and in terms of economic, including labor relations.
AT in the modern world, globalization is especially relevant
and regionalization of international economic relations. The dominant role in establishing the world economic order belongs to transnational capital and international institutions, among which the World Bank and the International Monetary Fund (IMF) are of economic interest. As a result of the international division of labor, the world poles of economic and technological development(North American, Western European and Asia-Pacific). The Dictionary reflects topical problems of international economic relations: the creation of free economic zones and international transport corridors; Internet economy; private and foreign investment that are of great importance in the development of the economy. Also included are the most common terms and economic concepts associated with market relations.
, Candidate of Economic Sciences, Professor;
, Master of Economic Sciences, Senior Lecturer;
, Candidate of Historical Sciences, Associate Professor;
, Candidate of Economic Sciences, Associate Professor;
, Master of Economic Sciences, Senior Lecturer.
ABANDON - waiver of debt claims, voluntary renunciation of property, exit from a transaction by paying a fine; refusal of the insured from his rights to the insured property in favor of the insurer for the purpose of
receive from him the full sum insured.
ABSOLUTELY NONELASTIC DEMAND - the value of demand
sa, which does not change with price.
TOTALLY ELASTIC DEMAND - the slightest decrease in price, which leads to an increase in the quantity demanded to infinity.
ABSOLUTE IMPoverishment- a situation where the population or part of it is able to satisfy the most minimal needs for food, clothing and housing, i.e., the needs that ensure the maintenance of life.
ABSOLUTE AND COMPARATIVE ADVANTAGE IN INTERNATIONAL TRADE THEORY - the teachings of the classics of English political and economic thought Adam Smith and David Ricardo. According to Smith, absolute advantages in international trade come from a country's ability to produce any the product is more efficient (per unit cost) than in another country. Advantages are determined by the difference in the absolute cost of production (the number of people required to produce a unit of goods) in each country. Ricardo considered Smith's position to be true, but a special case. Having an absolute advantage does not necessarily mean the efficiency of exporting that good to another country that may have a comparative advantage in production. The country should specialize in the production and export of those goods that can be produced at relatively low cost. Imports should be dominated by goods with relatively high production costs. As a result, the structure foreign trade should be determined by comparative rather than absolute advantages.
ABSTRAGING- distraction from the unimportant, highlighting the most important facts and relationships in the economy.
AVAL is a bill of exchange guarantee, by virtue of which the avalier who gave it assumes responsibility for the fulfillment of obligations by any of the persons liable under the bill (acceptor, drawer, endorser). A. may be accepted for the entire amount of the bill or for part of it.
ADVANCE - an amount of money or other value issued in advance against future payments for property, work performed and services rendered.
ADVANCE - an economic operation in which the funds spent on production go through various phases of the cycle of value, returning to their starting point with an increment in the form of the value of the surplus product.
AVISO - an official notice of changes in the state of mutual settlements, money transfers, sending goods, etc., sent by one counterparty to another. Banks notify their customers with the help of A. about debit and credit entries on accounts, about account balances, about payment of transfers, issuing a check, opening a letter of credit. The A. usually indicates its number, date of departure, the content of the operation, the amount, the payer, the recipient, their account numbers, and other data.
AUTARKIA [gr., self-satisfaction] - the political and economic isolation of the state, aimed at creating a closed national economy, i.e. relying on its own resources. Economic autarky is the independent development of the economy, ignoring the international division of labor and international trade.
AUTOMATIC ADJUSTMENT - macroeconomics
cal adjustment as a result of the operation of economic laws.
AUTOMATIC STABILIZERS - economic mechanisms that automatically reduce the amplitude of fluctuations in income and prices, softening the reaction of the level of gross national product to changes in aggregate demand without any direct intervention by government, firms or individuals. One of the most important stabilizers is a progressive income tax.
AUTO EFFECTS- changes in income not directly controlled by the government due to changes in the taxable base. For example, an increase in the cost of imports leads to an increase in income from import duties.
AUTONOMOUS INVESTMENT- planned owl-
large investment expenditures independent of the level of income in the economy.
ASSETS - 1. assets (cash, checks, bills of exchange, transfers, letters of credit), at the expense of which payments are made and obligations are repaid; 2. deposits of individuals and organizations in banks, which they can dispose of; 3. bank funds in foreign currency, securities and gold, kept in foreign banks.
TAX AGENT - a person who is responsible for the calculation and payment of taxes to the budget.
TRADING AGENT - a legal or natural person performing legal actions (concluding transactions) at the expense and in the interests of another person (principal).
EMPLOYMENT AGENCY - enterprise, dei-
acting as an agent on behalf of companies looking for workers and on behalf of people looking for work. Compiles lists of vacancies provided by potential employers, lists of job seekers. In addition, it can advertise jobs and recruit staff.
UNIT MONEY- types of money and funds that differ from each other in the degree of liquidity, i.e., the ability to quickly turn into cash.
AGGREGATION - enlargement economic indicators by grouping them together. It is carried out by summing up, grouping or in other ways reducing particular indicators to generalized ones.
ADAPTATION - adaptation of the economic system and its individual subjects, workers to changing conditions external environment, production, labor.
AD VALORORE - value, calculated in the form of a fixed percentage of total cost goods, transactions (tax, commission, customs duty etc.).
ADMINISTRATIVE-COMMAND SYSTEM - the system of managing the country's economy, in which the dominant role belongs to the distribution, command methods and power is concentrated in the central government, in the bureaucracy. It is characterized by purposeful directive planning. Contradictory democratic principles management, hinders the development of a free market, competition, entrepreneurship.
ADMINISTRATIVE AND TERRITORIAL DIVISION -
division of the territory of the state into regions, districts, provinces, provinces, departments, etc., in accordance with which the system of local government bodies is built and functions.
ADMINISTRATIVE MANAGEMENT METHODS - spo-
Soby and forms of management, which are based on bare administration, management, based on orders, orders, descended from above the installation.
ASIAN-PACIFIC ECONOMIC CO-
COOPERATION (APEC)- a regional grouping created in 1989. The association includes the states of the Pacific basin,
greatly differing in the level of socio-economic development. In 1995, a Program was adopted providing for the creation of a free trade and investment zone until 2010 for industrialized countries and by 2020 for developing countries.
ACQUISITOR - an insurance employee involved in the conclusion of new and renewal of prematurely terminated contracts.
AKVITENS - a document exempting from financial responsibility.
LETTER OF CREDIT - an instruction from a bank to one or more banks to make payments to an individual or legal entity on the order and at the expense of the client within the specified amount on the terms specified in the letter of credit.
ACCUMULATION - accumulation, collection.
ACT is an official document that has legal force. REVISION ACT - an official document that draws up
the results of a survey of the financial and economic activities of the organization, firm by the body conducting the audit.
ACTIVE OPERATIONS OF BANKS - operations by which banks allocate the resources at their disposal.
ASSETS - a set of property rights (property) owned by an individual or legal entity in the form of fixed assets, intangible assets, inventories, cash, financial investments; the left side of the company's balance sheet.
COMPANY ASSETS- property of the enterprise, consisting of tangible, financial, non-property assets. The company's tangible assets include land(both owned and used), buildings and structures for production and non-production purposes, other buildings and structures that are on the balance sheet of the enterprise, equipment, inventory, raw materials, products, etc. Financial assets of the enterprise include cash on hand, deposits in banks , deposits, checks, investments in other securities, commercial loans, shares in other commercial organizations, portfolio investments in shares of other enterprises, etc. Non-property assets of the enterprise - the rights to designations that individualize the enterprise, its products, works and services (branded name, trademarks, service marks, other exclusive rights).
FINANCIAL ASSETS- the totality of financial instruments accumulated as of a certain date by legal and individuals(cash on hand, checks, cash documents, securities, etc.).
ACTUARY CALCULATIONS- a system of mathematical and statistical calculations used in insurance. They reflect the mechanism of formation and expenditure of the insurance fund in long-term insurance operations related to the life expectancy of the population. A. r. based on determining the probability of an insured event
in depending on the age of the insured. Tariff rates are determined on the basis of actuarial calculations.
ACCEPTANCE - one of the forms of obligations for the implementation of non-cash payments between business entities for the delivered products, services rendered or work performed, providing for the consent of the buyer to pay for the products.
ACCEPTANT - a person who has accepted the offer and thereby consented to the conclusion of the contract.
EXCISE - a type of indirect tax, mainly on consumer goods, as well as services. A. is included in the price of goods or tariffs for services and transferred to the state budget.
SHAREHOLDER - participant commercial organization created
in the form of a joint-stock company that owns shares of this company, which confirm the size of its contribution to the authorized capital. The rights and obligations of shareholders, including the right to participate in the management of a joint-stock company, as well as to receive dividends, are determined by the legislation on joint-stock companies, as well as the charter of the company.
JOINT-STOCK COMPANY- commercial organization
in form economic society, the authorized capital of which is divided into a certain number of shares having the same nominal value. Members of a joint-stock company (shareholders) are not liable for the obligations of the company and bear the risk of losses associated with the activities of the company, to the extent of the value of their shares. Shareholders who have not fully paid for the shares shall be jointly and severally liable for the obligations of the joint stock company within the limits of the unpaid part of the value of their shares.
SHARE - a perpetual issuance security, indicating a contribution to the authorized capital of a joint-stock company and certifying the rights of its owner to participate in the management of this company, receive part of its profit in the form of dividends and part of the property
or its value after settlement with creditors in case of liquidation of the joint-stock company. A. can be issued simple (ordinary) and privileged.
PREFERRED SHARE- a security that gives its owner the right to receive a dividend as a fixed percentage, to a share of ownership upon liquidation of the company, but does not give the right to vote in the management of the company.
SIMPLE SHARE, ordinary share - a security certifying the owner's rights to receive part of the company's profit in the form of a dividend, to participate in the management of the company and to share the ownership of the joint-stock company in case of its liquidation.
ALIENATION - alienation, mortgage, sale, transfer. ALTERNATIVE PRICE is the labor time required to produce a unit of one commodity, expressed in terms of labor
the time it takes to produce a unit of another good.
OPPORTUNITY COSTS, a lt e r n a t e c o s s -
k and, price of choice - the number of goods that must be abandoned in order to receive another good. opportunity cost the use of any resource, product or service is the cost of the next best alternative.
TAX AMNESTY- exemption of a person who has committed a tax violation from liability for this violation.
AMORTIZATION - a gradual decrease in the value of fixed assets (structures, machinery, equipment) due to their wear and tear, as well as a gradual transfer of the value of fixed assets to manufactured products in order to accumulate funds for their renewal; the gradual repayment of debt by an individual or organization through periodic contributions or redemption of obligations; recognition of a debt obligation as invalid due to its loss, theft.
ANALYSIS - 1. division of the object of study into separate elements, into simpler economic phenomena and processes; 2. highlighting the essential aspects of phenomena and processes.
BALANCE ANALYSIS - a comprehensive assessment of the balance sheet, profit and loss accounts, as well as the report on the state of the organization (firm) and annexes to the report.
ANALYTICAL METHOD- a general term meaning a set of private methods for studying the economy, including analysis and synthesis, abstraction, assumption "ceteris paribus",
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