The main concepts in economics. Dictionary of social science terms (economics block). The budgetary system of the Russian Federation
state budgetary educational institution
middle vocational education
(specialized secondary educational institution)
"South Ural Power Engineering College"
GBOU SPO (SSUZ) YuET
DICTIONARY
ECONOMIC TERMS
Compiled by: Esina O.V.,
higher teacher
GBOU SPO (SSUZ) YuET: Dictionary economic concepts and foreign words / Compiled by O.V. Esina. - Yuzhnouralsk, 2015. - 60p.
The collection presents economic terms and concepts necessary for mastering the educational material.
D 
horny friends!
All students of economics face considerable difficulties. These difficulties are mainly associated with those, figuratively speaking, semantic "barriers" that it is important to skillfully overcome. This business is helped by knowing the path leading to a high quality of economic education.
The first step on this path is to master the language. economic science.
The fact is that economics has its own scientific language, which is freely spoken by professionals and scientists. But before other people who are not initiated into this science, an obstacle immediately arises that does not allow understanding this area of knowledge.
We are talking about economic terms. As you know, a term is a word or phrase that means a certain scientific concept. In turn, a concept is a thought that generalizes the signs of an object or phenomenon. The ratio is ideal: one term corresponds to one concept.
It is important to note that economics is being developed by scientists from different countries. They introduce new terms into scientific circumvention, naturally, in their own language. As a result, words from Greek, Latin, English and other languages fall into the composition of economic terms. This, of course, complicates the understanding of the vocabulary of economics. Therefore, for a better assimilation of this science, it is advisable to use dictionaries of foreign words, economic terms and concepts. This kind of dictionary is offered to you.
A
Abstract - abstract.
Agrarian - land; relating to land tenure, land use.
Monetary aggregates- types of modern monetary funds that combine different debt obligations (cash, deposits of the population and enterprises in banks, etc.) depending on the degree and nature of their liquidity (the ability of obligations to be converted into cash and spent on the purchase of goods and services).
Adaptive inflation expectations- the behavior of buyers who reduce their savings and increase the purchase of goods in order to try to reduce losses from inflation.
Trade surplus- excess of the value of goods exported from the country in comparison with the value of goods imported from abroad.
Active banking operations- their provision of various monetary loans to enterprises and the population.
Shareholder- a member of a joint stock company who owns one or more shares that give him the right to receive income - a part of the company's profit in the form of a dividend.
Joint-stock company- a business association, the funds of which are formed by the sale of shares.
Stock- a security, which testifies to the contribution by its owner of a share to the capital of a joint-stock company and gives him the right to receive dividend-income per share.
Alternative-admitting one of two or more possibilities.
Alternative cost- the amount of goods that must be given in exchange for items that enjoy much more preference.
Depreciation- gradual depreciation of fixed assets (buildings, structures, machinery, equipment), which makes it possible to transfer their cost in parts to manufactured products.
Antitrust Policy- legislative measures of the state, which prevent the complete capture of the market by monopolies and contribute to the preservation of competition in its civilized forms.
Rent- lease by one person (or organization) from another person (or organization) of land, houses, enterprises and other property for temporary use for a specified period and for a fixed fee.
B
Base year- the starting year, to the level of prices for goods, their changes in the subsequent period are calculated.
Balance- a set of indicators that characterize the phenomenon under study by comparing its individual sides.
Bank- an institution that accepts cash deposits from the population and enterprises for a specified period and with payment of interest (income) for this to depositors, as well as issuing loans (borrowed money) for a certain percentage.
Banknotes- bank notes; banknotes issued by the central banks of states; at present it is the main type of paper money.
Banking system- a single set of banks in the country.
Bank loan- cash loans issued to entrepreneurs and the population by banks and other credit institutions.
Bankruptcy- debt insolvency, the refusal of an entrepreneur to pay on his debt obligations due to lack of funds.
Barter trade- a trade transaction in which one product is exchanged for another product without the mediation of money.
Cashless payments- transfer of funds from the accounts of the payer (located in the bank) to the account of the beneficiary or by mutual offset of payment requests without the participation of cash.
Unemployment- a phenomenon in which part of the working people cannot find a job.
Business- any type of business that generates profit (income).
Stock exchange- an institution in which the sale and purchase of securities (stock exchange), currency (currency exchange), bulk goods according to samples or standards (commodity exchange) is carried out.
Labor exchange- an intermediary organization that ensures the coordination of the interests of employees and employers, the provision of social assistance to the unemployed.
Benefits something that meets the needs of people, meets their goals and aspirations.
Wealth of a nation-the set of labor-created and accumulated material wealth available in the country.
Broker- an intermediary when concluding transactions on exchanges that specialize in certain types of goods and services, acts on behalf of and at the expense of the customer, the buyer.
Budget- 1) list of cash income and expenses of the enterprise, the state for a certain period; 2) the totality of income and expenses of a person, family for a certain period.
Budget deficit- excess of the expenditure side of the state budget over the revenue side.
V
Gross output- an indicator characterizing the volume of products produced in a particular economy in value (monetary) terms.
Gross Domestic Product (GDP)- a generalizing economic indicator that expresses the total value of end goods and services created within the country in market prices.
Gross income- total income enterprises.
Gross National Product (GNP)- the total market price of all finished goods and services produced in the country during the year.
Currency- monetary unit of a given country and banknotes of foreign states.
Exchange rate- the price at which the national currency of one country is exchanged for another.
Option- modification, variety.
Complementary products- such pairs of products for which an increase in the price of one of them leads to a drop in demand for the Other thing.
Interchangeable goods- such pairs of products for which an increase in the price of one good leads to an increase in demand for another product.
Promissory note- a written promissory note in a strictly prescribed form, which the borrower issues money to the lender with the obligation to repay the amount of money specified in the bill by a certain date.
Possession- the physical possession of the thing on legal grounds.
Foreign trade turnover–The sum of the cost of goods and services exported and imported abroad.
Foreign market- the area of trade relations of a given country with other states.
External effect- the result of the production or consumption of the good, the impact of which on third parties (who are neither sellers nor buyers) is not reflected in the price of the good.
Domestic market- a set of trade transactions within the country.
Intra-industry competition- the rivalry of commodity owners of one branch of the economy for Better conditions purchase and sale of goods.
Universal equivalent- a product that serves as a measure of the value of all other products.
Capital export- creation of enterprises on the territory of other countries, the costs of which are borne by foreign owners.
High tech- a set of the latest methods of manufacturing products, which are based on the achievements of the scientific and technological revolution and are distinguished by the greatest efficiency (machineless, sparsely populated and deserted, resource-saving, etc.).
G
Galloping inflation- relatively fast growth of prices for goods and services (from 20 to 200% per year).
Hyperinflation- an exceptionally fast rise in prices for goods (by 50% or more per month), leading to the breakdown of normal economic ties.
Global- worldwide, covering the entire globe. The state budget- the aggregate of monetary income and expenditures of the state.
State debt- government securities sold to enterprises and the population of the country (on which the government pays interest), and international loans (debt to other states and international credit organizations).
State socialism- the socio-economic system, in which the state owns and centrally controls the decisive sectors of the economy, in a planned manner regulates the levels of prices and incomes of all members of society.
D
Debtor- an individual or legal entity in arrears this enterprise or an institution.
Motto course- the number of foreign currency units that can be exchanged for the domestic currency.
Demographic- relating to the characteristics of the size and composition of the population.
Money turnover- the continuous movement of money, playing the role of a medium of circulation (an intermediary in the exchange of some goods for others) and a means of payment (debt repayment).
Money - from the period of their origin, they were a special commodity, which was a universal equivalent (a measure of the value of all commodities); in modern conditions, money is a legal tender (promissory notes of the state, banks and savings institutions).
Deposits - sums of money or securities entrusted to banks for storage and use.
Depression - stagnant period of the economic cycle, which follows a crisis (decline in production) and is usually characterized by weak demand for goods, mass unemployment.
Deficiency - a decrease in the general price level and an increase in the purchasing power of the monetary unit.
Dividend - part of the profit that v the reporting period is due to a member of the joint-stock company for the share owned by him.
Dealer - a participant in exchange transactions who buys securities in his own name and at his own expense, and then resells them; the proceeds from such a resale are his income.
Disproportion- violation of proportion, compliance in the development of individual industries and areas of the national economy.
Differentiation-division of the whole into different parts.
Differential rent- differential income of the land owner; is formed due to the fact that products with the best in fertility and location of land plots are sold on the market at prices corresponding to the conditions of production in the worst plots.
E
Natural unemployment- the presence of workers who are temporarily not employed and are looking for work due to constant changes in the number of jobs in the national economy.
Natural monopoly- a kind of monopoly that belongs to owners who have at their disposal rare and freely reproducible elements of production.
3
Okun's law- an increase in the actual level of unemployed above the natural level of unemployment by 1% leads to a decrease in the volume of production of the gross national product by 2.5%.
The law of supply - direct relationship between the market price and the value of the supply of goods: the higher the price, the more the supply of products from the sellers grows.
Demand law- the inverse relationship between the price and the amount of demand: the higher the price of a product, the less demand for it from buyers.
The law of diminishing utility - as the consumer increases the consumption of the good, the usefulness of each additional unit of the product diminishes.
Employment- provision of workers with appropriate jobs.
Wage- the amount of money paid for the use of labor.
Land rent- income of the land owner, received from the provision of a land plot for temporary use to an entrepreneur organizing agricultural production.
gold standard- money circulation, in which the role of money is played by gold (in the form of gold coins).
AND
Import- the import of goods into the country from abroad for their sale or use in that country.
Investment- funds allocated for the acquisition of operating capital (machinery, equipment, buildings, etc.) intended for the production of goods.
Indexing- an increase in monetary income and savings of citizens due to the rise in consumer prices.
Price index- the ratio of the price of a certain set of goods and services (consumer basket) in a given period of time to the price of the same set in the corresponding base period (the value of which is taken as 100%), expressed as a percentage (multiplied by 100).
Individual reproduction- continuous resumption of production at a separate enterprise.
Industry- industry.
Innovation- creation and implementation of various innovations.
Institute (social)- a certain organization of social activities and public relations, embodying the norms of economic, political, legal and other areas of life, as well as social rules of life and behavior of people.
Integration- unification of some parts into a whole.
Intensification- the use of more and more efficient means of production and more advanced forms of labor organization and technologies based on the achievements of scientific and technological progress.
Supply inflation-increase in prices due to an increase in production costs (as a result of an increase in wages and prices for raw materials).
Demand inflation- rise in prices caused by an increase in mass demand for goods and services.
Infrastructure-components of the general device economy, which ensure normal economic activity in telsh(transport, communications, education and vocational training, housing and communal services).
Mortgage- mortgage of real estate (land, buildings and etc.) to obtain a cash loan.
TO
Capital- the cost of the means of production used for the purpose of making a profit.
Cartel- a monopoly association of entrepreneurs, whose members agree on the size of production, sales markets, terms of sale, prices, payment terms, while maintaining production and commercial independence.
Command and control management system- the method of organizing the national economy, in which material resources are state property, and all economic activity is directed through central planning.
Commercial- shopping.
Commercial loan- such a loan, which is provided by goods with deferred payment.
Company- industrial, trade, transport or other association of entrepreneurs.
Convertible currency- national currency, which can be freely exchanged for any foreign currency.
End products- ready-made material goods that go for consumption by the population, the restoration of worn-out means of labor and for accumulation.
Competition- struggle between commodity owners for more favorable conditions of production, purchase and sale of goods on the market.
Concentration of production- the concentration of an increasing volume of production at growing enterprises.
Concern- union formally independent enterprises(usually from different industries, trade, transport and banks), within which the parent company organizes financial (monetary) control over all participants.
Cooperative- association of persons for the purpose of joint production and sale of products, purchase and consumption of goods or services, construction and operation of residential buildings (for example, an agricultural cooperative, a housing cooperative).
Corporation- in a number of countries - the name of a joint stock company.
Credit- lending goods or money on terms of repayment after a specified time of borrowed funds and payment of interest (income of the property owner).
Credit expansion-stimulation of banks' lending operations (policy of "cheap money" - providing loans at low interest rates) in the expectation that lending will contribute to economic recovery and production growth.
Credit card- a special payment and settlement document that the bank issues to its depositors for non-cash payment for goods and services.
Creditor- the lender (individual, enterprise, organization) lending something.
A crisis- a recurring phenomenon in a developed market economy, which is usually expressed in the overproduction of goods that cannot be sold, in the deterioration of all economic indicators.
Circulation of capital- the movement of capital assets, which covers the process of production and circulation created goods and ends with the return of capital to its original monetary form.
Promotion rate- its selling price, which is directly proportional to the amount of dividends (earnings per share) and inversely proportional to the level of loan interest.
Exchange rate gain-income from changes in the market price of a share.
L
Legal monopoly- forms of monopolies that are legally formed (protected from competition by patents, copyrights, trademarks).
Liquidity- the ease with which various savings and securities can be converted into cash and spent on the purchase of goods and services.
Personal income-income that goes directly to individuals and households.
M
Broker- an intermediary on the exchange who brings together the participants in transactions (indicates the possibility of their conclusion), but does not conclude transactions himself (this is done by brokers and dealers).
Macroeconomics- chapter economic theory studying the national economy as a whole.
Marketing- an enterprise management system that better adapts production to market requirements for more profitable sale goods.
International division of labor- specialization (isolation) of individual countries in the production of certain goods and services in order to sell them on the world market.
Cross-industry competition- competition between entrepreneurs of all sectors of the national economy for a more profitable investment of capital.
Manager- a hired manager at an enterprise, a scientifically trained management specialist.
The measure of value- the function of money, associated with their ability to measure the value of all goods.
Labor migration- the movement of masses of workers from their countries to others in search of work.
Microeconomics- a section of economic theory that studies the activities of household (family) households and enterprises.
World monetary system- the form of organizing international monetary settlements.
World economy- a single set of economic relations between countries that are interconnected by virtue of the international division of labor
World money- the function of money in the conditions of the gold standard, when gold acted as the universal equivalent in economic relations between all countries.
Monopoly- the exclusive right of production and trade, which belongs to one person, a certain group of persons or the state.
Monopolistic competition- a kind of rivalry between a large number of enterprises that produce similar, but not completely interchangeable products, as a rule, protected by a trademark, patent or brand name.
Monopoly price- a special type of market price, which is set at a level above or below the equilibrium price (social value) in order to obtain monopoly income.
Monopsony- an economic association that buys some products from all sellers at prices that are favorable for the association.
H
Accumulation- an increase in money and material resources allocated for the expansion of production.
Taxes are compulsory payments of enterprises and the population, which the state collects taking into account the amount of income received by individuals and legal entities.
Natural production- a type of organizational and economic relations in which people create products to meet the needs of only their own economy.
O
Social being- the material relations of people to nature and to each other, arising on the basis of the production of material goods.
Option- the right to choose the way of fulfilling the obligation, provided by one of the parties to the contract by its terms, or the right to refuse to fulfill the obligation under certain conditions.
NS
Pauperism- poverty as a result of increasing exploitation, inflation and mass unemployment; mass impoverishment.
Portfolio investments- purchase of a certain number of shares of a foreign company, not exceeding a controlling stake.
Prolongation- extension of the term of the contract, agreement
R
Revaluation- an increase in the fixed exchange rate relative to other currencies.
WITH
Sequestration- a prohibition or restriction of the owner's right to dispose of his property imposed by state authorities.
Subvention- a fixed amount of public funds,
allocated on a gratuitous basis for targeted financing (reimbursement) of expenditures of the budgets of the constituent entities of the Russian
Federation.
Subsidy- monetary assistance, which is provided by the state as an additional source of covering expenses.
T
Customs Union- a group of countries that have the same import duties in relation to goods from countries outside this group.
Transaction costs - costs associated with the conclusion and implementation of commercial transactions.
F
Philanthropy- charity, assistance to the poor, socially unprotected; patronage ..
Force Majeure- extraordinary and inevitable circumstances, as a result of which a person cannot fulfill his obligations under the contract.
Freight- carriage charges to the vehicle owner
for the carriage of goods or passengers by any route, message, -
especially on sea and waterways. Sometimes under this term
means the cargo itself.
Fronting(nomination) - an arrangement whereby one company takes over the business of another. This usually happens in markets where the first company has a strong position and it is much easier for them to do business than for a company that has agreed to front.
Frustration- a mental state, accompanied by negative experiences: disappointment, irritation, anxiety, despair, etc. Frustration occurs when satisfaction. Any need meets an insurmountable obstacle. Frequent frustrations form aggressiveness, increased excitability.
C
Assignment- assignment of the creditor's claim to another person. Economic integration - strengthening ties between the economies of several countries on the basis of the international division of labor through interstate agreements.
NS
Embargo- a ban on the supply of goods to any country.
Accelerator effect- investment growth that outstrips the one that caused it growth in sales.
Multiplier effect- a process reminiscent of a chain reaction, when an increase (decrease) in the costs of some people and firms leads to an increase (decrease) in income, and hence the costs of other people and firms. As a result, the overall change in expenditures in the economy is several times higher than the initial one.
New customer effect- an increase in the value of demand for a product, due to the fact that when the price falls, people who have not previously purchased a similar product begin to buy it.
BIBLIOGRAPHY
1. Begeneva, T.P. Lesson development in economics. Basic level: grades 10-11. –M .; VAKO, 2011.-160s. - (to help the school teacher).
2.Borisova N.V., Solovieva A.A. Blitz - games and non-traditional forms of lectures. - M .: VINITI, 2003.
3. Lipsits, I.V. Economy: history and modern organization economic activity: Textbook for 7-8 grades. general education institution (pre-profile training). - 7th edition - M .: Vita-Press, 2055. – 224 p.: ill.
4. Pidkasisty PI, Khaidarov Zh.S. Game technology in learning and development. M .: Ros. education, 2006.
5. Trainev V.A. Business games in educational process... - M .: Publishing house. House "Dashkov and K", 2002.
Aval
Bill of exchange, in respect of which the bill of exchange applies. This surety means a guarantee of full or partial payment of the bill if the debtor has not fulfilled his obligations on time. Aval is given on the front side of the bill and is expressed by the words: "Count as aval" or any other similar phrase and signed by the avalist. Aval is given for any person responsible for the bill, therefore the avalist must indicate for whom he gives a surety. In the absence of such an indication, the aval shall be deemed to have been issued for the drawer, i.e. not for the debtor, but for the creditor. The Avalist and the person for whom he is charged shall be jointly and severally liable. Having paid the bill, the avalist acquires the right to reclaim the person for whom he issued the surety, as well as those who are obliged to this person.
Prepaid expense
The amount of money issued on account of forthcoming payments for material values, work performed and services rendered.
Advice
In banking, commercial, accounting practice - a notification sent from one counterparty to another about changes in the state of mutual settlements or about the transfer of funds, the sending of goods. An advice note, as a document, has a legal character.
Assets
The property of enterprises, which includes fixed assets, other long-term investments (including intangible assets), current assets, financial assets.
Acceptance
The consent of the obligated person to pay the payment request and thus make the settlements stipulated by the contract with the product supplier. The acceptance form of settlement involves the presentation for payment for the supplied products of a payment request issued by the supplier of goods.
Excise tax
Indirect tax included in the price of the item and paid by the buyer. The law of the Russian Federation establishes the procedure for imposing excise taxes on sold wine and vodka products, ethyl alcohol and food raw materials (except for those sold for the production of alcoholic beverages and wine products, beer, tobacco products, tires, cars, trucks with a carrying capacity of up to 1.25 tons, jewelry, diamonds, crystal products, carpets and rugs, fur products, as well as clothes made of genuine leather).
Stock
Securities issued by joint-stock companies and indicating the share of the owner (holder) in the capital of this company, giving the right to their owner to receive profit in the form of dividends, and also, depending on the type, capable of giving the right to vote to general meeting shareholders (simple nominal). This type of equity securities is not issued by government agencies, they are only issued by industrial, commercial and financial corporations. The price at which a share is traded on the market is called the share price.
Auditing activities
Activities of independent non-departmental financial control. Audit (independent financial control) is carried out by specialized audit firms and services. Auditing firms provide control and consulting services to all enterprises and organizations on a paid basis. Auditing firms are independent organizations designed to improve the quality of control and its objectivity.
Correspondent banks
Banks that execute, on the basis of a correspondent agreement, each other's instructions for payments and settlements through specially opened accounts or through the accounts of correspondent banks in a third bank.
Bank guarantee
A written commitment given by a bank or other credit institution, or an insurance organization (guarantor) at the request of another person (principal), to pay the principal's creditor (beneficiary), in accordance with the terms of the obligation given by the guarantor, a sum of money upon submission by the beneficiary of a written demand for its payment. The bank guarantee ensures the proper fulfillment by the principal of his obligation to the beneficiary (the main obligation). The principal pays remuneration to the guarantor for the issuance of a bank guarantee. The bank guarantee comes into force from the date of its issue, unless otherwise provided in the guarantee. The obligation of the guarantor to the beneficiary provided for by the bank guarantee does not depend in the relations between them on the basic obligation for the performance of which it was issued, even if the guarantee contains a reference to this obligation.
Bank transfer
An instruction from one person (the remitter) to the bank to transfer a certain amount in favor of another person (the remitter). The bank that has accepted the transfer order executes it through its correspondent.
Bankruptcy
The debtor's inability to meet the creditors' claims for payment for goods (works, services), including the inability to ensure mandatory payments to the budget and extra-budgetary funds.
Barter deal
Non-currency, but valued and balanced exchange of goods, formalized by a single agreement (contract).
Cashless payments
Settlements between organizations, made by the bank transferring the amount from the account of the debtor's organization to the account of the creditor organization according to settlement documents in a non-cash manner. Payments can be made with the consent (acceptance) of the payer and on his behalf.
Commodity exchange
A commercial enterprise, a regularly functioning market for homogeneous goods with certain characteristics.
Stock exchange
Organized and regularly functioning market for the purchase and sale of securities. The main functions of the stock exchange are the mobilization of temporarily free funds through the sale of securities and the establishment of the market value of securities.
Budget
Form of formation and spending of the fund of funds intended for financial support of the tasks and functions of the state and local self-government; an economic category, represented by monetary relations arising between the state and legal entities and individuals regarding the redistribution of national income in connection with the formation and use of the country's budgetary fund intended to finance the national economy, socio-cultural needs, defense needs and government controlled.
Consolidated budget
The set of budgets of all levels of the budgetary system of the Russian Federation in the corresponding territory.
Budget deficit
Excess of budget expenditures over its revenues.
Budget income
Funds received free of charge and irrevocably in accordance with the legislation of the Russian Federation at the disposal of the state authorities of the Russian Federation, state authorities of the constituent entities of the Russian Federation and local governments.
Budget surplus
Excess of budget revenues over its expenditures.
Budget expenses
Funds allocated for financial support of the tasks and functions of the state and local government.
Budget list
Document on the quarterly distribution of budget revenues and expenditures and revenues from sources of financing the budget deficit, establishing the distribution of budget allocations among recipients of budget funds and drawn up in accordance with the budget classification of the Russian Federation.
Budget system
Based on economic relations and legal norms, the totality of all types of budgets in the country that have relationships established by law with each other. The unity of the budgetary system is based on the interaction of budgets of all levels, carried out through the use of regulatory revenue sources, the creation of targeted and regional budget funds, and their partial redistribution. This unity is realized through a single socio-economic, including tax, policy.
The budgetary system of the Russian Federation
The aggregate of the federal budget, the budgets of the constituent entities of the Russian Federation, local budgets and budgets of state extra-budgetary funds, based on economic relations and the state structure of the Russian Federation, regulated by legal norms.
Budget loan
Budget funds provided to another budget on a returnable, gratuitous or reimbursable basis for a period not exceeding six months within a financial year.
Budget structure
Based on economic relations and legal norms, the totality of all types of budgets in the country. The main document in building the budgetary system is the Constitution of the Russian Federation.
Budget law of the Russian Federation
A set of legal norms (mandatory rules of conduct) delimiting the scope of various budgets (for example, regional, regional, city, district, rural, settlement), defining the powers of individual government bodies in the issue of the publication of a budget law, regulating the preparation and implementation of this law.
Budgetary regulation
The system of redistribution of funds, consisting in the transfer of a part of the resources of the higher budget to the lower one in order to balance. The regulatory mechanism includes: subsidies; subventions; regulating income sources. Budgetary regulation is an integral part of the budgetary process.
Budget device
The set of principles on which the organization of the budgetary system is based.
Budgetary appropriations
Budgetary funds provided by the budgetary list to the recipient or manager of budgetary funds.
Budget loan
The form of financing budget expenditures, which provides for the provision of funds to legal entities on a repayable and reimbursable basis.
Budgeting process
Activities of public authorities and bodies regulated by the norms of law local government and participants in the budget process for the preparation and consideration of draft budgets, draft budgets of state extra-budgetary funds, approval and execution of budgets and budgets of state extra-budgetary funds, as well as control over their execution.
Currency
The monetary unit used to measure the value of goods, the concept of "currency" is used in the following values: the monetary unit of a given country (US dollar, Japanese yen), banknotes of foreign countries, as well as credit and means of payment used in international settlements, and international ( regional) monetary unit of account and means of payment (transferable ruble, EURO).
Free-convertible currency
Currency freely and unlimitedly exchangeable for other foreign currencies.
Foreign exchange settlements
The system of organizing and regulating payments for monetary claims and liabilities in foreign currency arising from the implementation foreign economic activity... Payments can be made in cash and on credit, i.e. with payment by installments. Cash settlement represents full payment for the goods before the deadline or at the time of the transfer of the goods or documents of title to the purchaser. Settlement on credit or settlement with payment by installments has two forms: commercial credit (exporter's credit to the importer) to the issuance of advances by the importer to the exporter.
Exchange rate
The price of a monetary unit of a given national currency, expressed in monetary units of the currency of another country.
Promissory note
A security that certifies the unconditional obligation of the drawer (promissory note) or another payer (bill of exchange) specified in the bill of exchange to pay the borrowed money at the onset of the period provided for by the bill, the relations of the parties to the bill are regulated by the bill of exchange and bill of exchange. The Law of the Russian Federation "On the monetary system of the Russian Federation" (Art. 13) considers a bill of exchange to be a payment document used in non-cash payments. Russia adheres to the "Uniform Bill of Exchange Law" adopted in 1930 in Geneva.
Bill of exchange
A loan drawn up by issuing a bill of exchange to the importer, who accepts it upon receipt of shipping and payment documents.
Extrabudgetary funds
A specific form of redistribution and use of financial resources attracted to finance some social needs and are used in a comprehensive manner on the basis of the organizational independence of funds.
Government loans
Credit relations between the state and legal entities and individuals, as a result of which the state receives certain amounts of funds for a certain period for a certain fee, are carried out in the form of the sale of government securities, loans of extra-budgetary funds and in the order of obtaining loans from banks.
Government spending
Part of financial relations, which is due to the use of state revenues in connection with the implementation of their functions: security; defense; foreign economic relations; social; managerial.
Public finance
Monetary relations regarding the distribution and redistribution of the value of the social product and part of the national wealth, associated with the formation of financial resources at the disposal of the state and its enterprises and the use of public funds for the costs of expanding production, meeting the socio-cultural needs of society, the needs of defense and management. State budget revenues consist of many sources and receipts. The totality of all types of government revenues, which is formed by various methods, constitutes the system of government revenues.
State off-budget fund
Form of education and spending of funds generated outside the federal budget and the budgets of the constituent entities of the Russian Federation.
State loan
Monetary relations arising between the state and legal entities and individuals in connection with the mobilization of temporarily free funds at the disposal of state authorities and their use to finance public expenditures.
Devaluation
Decrease in the exchange rate of a national or international (regional) monetary unit in relation to the currencies of another country. Very often, devaluation reflects the depreciation of foreign exchange as a result of inflation.
Denomination
Consolidation of the national monetary unit by exchanging old banknotes for new ones according to the established ratio in order to streamline monetary circulation, facilitate accounting and settlements in the country with a simultaneous recalculation (in the same ratio) of prices, tariffs, wages, etc.
Depositary
Organization conducting depository activities.
Depository activities
Provision of services for the storage (deposition) of securities, as well as "servicing of securities", i.e. fulfillment of the instructions of the depositor for the exercise of the rights certified by securities.
Deport
An exchange transaction for a period, concluded on a stock exchange with the expectation of a decrease in the price of securities in order to obtain exchange rate differences.
Deflation
Withdrawal by the state from circulation of a part of the circulating surplus funds in order to reduce inflation.
Bank deposit agreement
An agreement under which one party (bank), which has accepted the sum of money (deposit) received from the other party (depositor) or received for it, undertakes to return the amount of the deposit and pay interest on it on the terms and in the manner prescribed by the agreement. A bank deposit agreement in which a citizen is the depositor is recognized as a public agreement. The rules on the bank account agreement apply to the relations between the bank and the depositor on the account to which the deposit was made, unless otherwise provided by the rules of this Chapter or follows from the essence of the bank deposit agreement.
Bank account agreement
An agreement under which the bank undertakes to accept and credit funds received to the account opened for the client (account holder), to fulfill the client's orders to transfer and issue the corresponding amounts from the account and conduct other operations on the account. The bank can use the funds available on the account, guaranteeing the client's right to freely dispose of these funds. The bank is not entitled to determine and control the directions of using the client's funds and establish other restrictions not provided for by law or the bank account agreement on his right to dispose of funds at its own discretion.
State loan agreement
An agreement under which the borrower is the Russian Federation, a constituent entity of the Russian Federation, and the lender is a citizen or legal entity. Government loans are voluntary. A government loan agreement is concluded by the lender's acquisition of issued government bonds or other government securities, certifying the lender's right to receive funds from the borrower loaned to him or, depending on the terms of the loan, other property, established interest or other property rights within the time frame stipulated by the conditions issue of a loan into circulation. Changes to the terms of the issued loan are not allowed. The rules on the state loan agreement apply accordingly to loans issued by the municipality.
Loan agreement
An agreement under which one party (lender) transfers to the ownership of the other party (borrower) money or other things defined by generic characteristics, and the borrower undertakes to return the same amount of money (loan amount) to the lender or an equal number of other things of the same kind received by him and quality. The loan agreement is considered concluded from the moment of transfer of money or other things. A loan agreement between citizens must be concluded in writing if its amount exceeds at least ten times the minimum wage established by law, and in the case when the lender is a legal entity, regardless of the amount. In confirmation of the loan agreement and its terms, a receipt of the borrower or other document may be presented, certifying that the lender has transferred a certain amount of money or a certain number of things to him.
Surety agreement
An agreement under which the surety undertakes to the creditor of another person to be responsible for the performance by the latter of his obligations in whole or in part. A surety agreement may also be concluded to secure an obligation that will arise in the future. The surety agreement must be made in writing. Non-compliance writing entails the invalidity of the surety agreement. In the event of non-fulfillment or improper fulfillment by the debtor of the obligation secured by the surety, the surety and the debtor shall be jointly and severally liable to the creditor, if the law or the contract of surety does not provide for the subsidiary liability of the surety.
State external debt
Debt obligations of the Government of the Russian Federation to foreign states or international organizations, denominated in foreign currency.
State internal debt
Debt obligations of the Government of the Russian Federation, denominated in the currency of the Russian Federation, to legal entities and individuals, unless otherwise provided by the regulations of the Russian Federation. Legal forms of debt obligations are loans received by the government, government loans obtained through the issue of securities on behalf of the Government of the Russian Federation, other debt obligations guaranteed by the Government of the Russian Federation.
Debtor, debtor enterprise
An enterprise that does not fulfill or in the near future will not be able to fulfill its obligations to creditors. The legislation of the Russian Federation introduced the concept of an insolvent debtor (bankruptcy).
Subsidies
Budgetary funds provided to the budget of another level of the budgetary system of the Russian Federation on a gratuitous and irrevocable basis to cover running costs.
Anchored income
Revenues that are fully or partially transferred to a certain type of budget.
Pledge
A civil law action that gives the creditor the right to the obligation secured by the pledge (the pledgee) in the event of the debtor's failure to fulfill this obligation to receive satisfaction from the value of the pledged property primarily to other creditors. The pledgee has the right to receive, on the same basis, satisfaction from the insurance indemnity for the loss or damage of the pledged property, regardless of in whose favor it is insured, unless the loss or damage has occurred for reasons for which the pledgee is responsible. Pledge of land plots, enterprises, buildings, structures, apartments and other immovable property (mortgage) is regulated by the law on mortgages. The pledge arises by virtue of the contract. The pledge also arises on the basis of the law upon the occurrence of the circumstances specified in it.
Investment fund
An intermediary who, by issuing the Central Bank, attracts privatization certificates and funds of citizens for their subsequent investment in privatization objects, real estate and the Central Bank of other joint-stock companies. There are open-ended and closed-end investment funds. Open-end investment funds sell their securities with the obligation to redeem them at the first request of investors. Closed-end investment funds issue their securities with the obligation to redeem them at the end of the term for which the fund was established.
Investors
Business entities (government bodies that channel funds to cover urgent and long-term needs), persons who own securities (owners) or other property rights (owners).
Endorsement
Its essence lies in the fact that on the reverse side of the bill or an additional sheet (allonge), a transfer inscription is made, through which the right to receive payment is transferred to another person, along with the bill. The person who transfers the bill under the endorsement is called the endorser, and the person who received it is called the endorser. The act of transferring a bill is called endorsed or endorsed. An endorsement can be made in favor of any person, including even in favor of the payer or drawer. It should be simple and unconditional. Partial endorsement, i.e. transfer of only part of the bill amount is not allowed. The endorser is responsible for acceptance and payment. He can absolve himself of responsibility by means of the inscription "Without turning to me."
Collection
A form of settlement in which the bank (issuing bank) undertakes, on behalf of the client, to carry out actions at the client's expense to receive the payment and (or) the acceptance of the payment from the payer. The issuing bank, which has received the client's order, has the right to involve another bank (executing bank) for its execution. The procedure for making payments for collection is governed by the law, the banking rules established in accordance with it and the customs of business used in banking practice.
Limitation of actions
The term for the protection of the right on the claim of the person. whose right is violated. The general limitation period is set at three years. For certain types requirements, the law may establish special limitation periods, reduced or longer than the general period. The limitation period, in particular, does not apply to the claims of depositors to the bank for the issuance of deposits.
Commercial banks
Private and state banks that carry out universal operations for lending to industrial, commercial and other enterprises, mainly at the expense of the monetary capital that they receive in the form of deposits.
Commercial loan
Credit provided in commodity form by sellers to buyers in the form of a deferred payment for goods sold. It is provided under the obligations of the debtor (buyer) to repay within a certain period both the amount of the principal debt and the accrued interest. There are five main ways to provide a commercial loan: bill method; open account; discount subject to payment at a certain time; seasonal loan; consignment.
Contest mass
The debtor's property, which can be foreclosed in the process of bankruptcy proceedings.
Bankruptcy proceedings
A procedure aimed at compulsory or voluntary liquidation of an insolvent enterprise (i.e. bankruptcy).
Bankruptcy creditor
An individual or legal entity that has property claims against the debtor and is not the holder of security rights.
Consignment
A way of lending in which a retailer can simply receive commodities without obligation. If the goods are sold, then payment will be made to the manufacturer, and if not, the retailer can return the goods to the manufacturer without paying a penalty. Consignment is usually used for the sale of new, atypical goods, the demand for which is difficult to predict. An example is the practice of producing and selling new textbooks for institutes. Book publishers send their books to institute bookstores on condition that they be returned if they are not sold.
Loan agreement
An agreement under which a bank or other credit institution (lender) undertakes to provide funds (credit) to the borrower in the amount and on the terms stipulated by the agreement, and the borrower undertakes to return the amount received and pay interest on it. The loan agreement must be concluded in writing. Failure to comply with the written form entails the invalidity of the loan agreement. Such an agreement is considered null and void. The lender has the right to refuse to provide the borrower with the loan provided for in the loan agreement in whole or in part if there are circumstances that clearly indicate that the amount provided to the borrower will not be returned on time. The borrower has the right to refuse to receive a loan in whole or in part, notifying the lender of this before the term for its provision established by the agreement, unless otherwise provided by law, other legal acts or the loan agreement. In case of violation by the borrower of the obligation of the intended use of the loan provided for by the loan agreement, the lender also has the right to refuse further lending to the borrower under the agreement.
Leasing
It is a special form of financial investment for the purchase of equipment, durable goods or real estate. Participants in leasing operations are, as a rule, three parties: the enterprise - the manufacturer of the leased object; leasing company - lessor; as well as an enterprise - lessee (lessee).
Broker
An intermediary in the conclusion of transactions on stock and commodity exchanges, who acts on behalf of clients and at their expense.
Minimum budgetary security
The minimum allowable cost of state or municipal services in monetary terms, provided by state authorities or local self-government bodies per capita at the expense of the corresponding budgets.
Minimum State Social Standards
State services, the provision of which to citizens on a gratuitous and irrevocable basis through funding from the budgets of all levels of the budgetary system of the Russian Federation and the budgets of state non-budgetary funds is guaranteed by the state at a certain minimum permissible level throughout the entire territory of the Russian Federation.
Tax
Obligatory, individually gratuitous payment levied from organizations and individuals in the form of alienation of funds belonging to them by right of ownership, economic management or operational management of funds, in order to financially support the activities of the state and (or) municipalities. Signs of the tax: compulsory; gratuitousness; non-equivalence.
Tax inspectorates
Bodies of operational financial control. The head of the system of tax authorities is the Ministry of Taxes and Duties of the Russian Federation. The tasks of the tax services are: a) control over the observance of the legislation on taxes, ensuring the completeness and timeliness of tax payments to the budget; b) carrying out inspections of the financial condition of enterprises and organizations, regardless of departmental subordination and their organizational and legal form; c) control over the correctness of the determination of taxable profit (income) in order to prevent its understatement; d) registration of all subjects, as well as real and potential objects of taxation; e) accounting, assessment and sale of confiscated, ownerless property, property transferred to the state, treasures. Tax inspectorates have the right to: receive the necessary documents and information from organizations of various forms of ownership, except for those that constitute a commercial secret determined by law; monitor compliance with the legislation on entrepreneurship of citizens; survey all premises used for generating income; suspend all operations of enterprises and citizens in case of failure to submit documents; seize documents proving the concealment of income; apply sanctions and fines; file claims in court and arbitration for the liquidation of enterprises, invalidation of transactions.
Immovable things (real estate, real estate)
Land plots, subsoil plots, other objects and everything that is firmly connected with the land, that is, objects, the movement of which is impossible without disproportionate damage to their purpose, including forests, perennial plantings of buildings, structures. Immovable things also include aircraft and sea vessels subject to state registration, inland navigation vessels, and space objects. Other property may also be classified as immovable by law.
Forfeit (fine, penalty)
The amount of money determined by law or contract that the debtor is obliged to pay to the creditor in the event of non-performance or improper performance of the obligation, in particular in case of delay in performance. Upon a claim for payment of a penalty, the creditor is not obliged to prove the damage caused to him. The creditor does not have the right to demand payment of the penalty if the debtor is not liable for non-fulfillment or improper fulfillment of obligations.
Government bonds
Securities issued by the state with the aim of attracting part of the borrowed funds to the state budget. Income received from government securities, in contrast to corporate securities, have preferential taxation. At present, the Ministry of Finance of the Russian Federation, on behalf of the Government of the Russian Federation, attracts short-term borrowed funds from legal entities and the population for bonded loans. The most common short-term loan is a loan against the issue of government short-term zero-coupon bonds (GKO).
Corporate bonds
Pledged bonds (secured by physical assets) mortgage bonds (direct debt obligations that do not create property claims against the corporation) bonds secured by other securities of the firm (secured by shares or debt obligations of a company) convertible bonds (give the investor the right to purchase ordinary shares of the same company at a certain price at a certain time) profitable bonds (bring interest only when income is earned).
Municipal bonds
Issued with the aim of raising funds for the construction or repair of public facilities: roads, bridges, water supply systems, etc. Subdivided into the following types of bonds under a general obligation (supported by the issuer's good faith) project income bonds (redeemed from income from projects for financing of which they are issued).
Bond
A security certifying the right of its holder to receive the par value of the bond or other property equivalent from the person who issued the bond within the period specified by it. A bond also grants its holder the right to receive a fixed percentage of the par value of the bond or other property rights.
Cash liabilities
Must be denominated in rubles. A monetary obligation may stipulate that it is payable in rubles in an amount equivalent to a certain amount in foreign currency or in conventional monetary units (ECU, for example). In this case, the amount payable in rubles is determined at the official exchange rate of the corresponding currency or conventional monetary units on the day of payment, unless a different rate or another date of its determination is established by law or by agreement of the parties.
Overdraft
Negative balance on the client's current account, sometimes acquiring the status of a loan, i.e. a form of a short-term loan, the provision of which is carried out by debiting funds from the client's account by the bank in excess of the balance on the account, as a result of which a debit balance is formed. With an overdraft, all the amounts credited to the client's current account are sent to repay the debt, therefore the amount of the loan changes as the funds are received, which distinguishes the overdraft from ordinary loans. Interest is charged at existing or agreed rates.
Option
The right to choose the method of fulfilling the obligation provided by one of the parties to the contract, its terms or the right to refuse to fulfill the obligation under certain conditions.
Option loan
A loan with an option is a form of a loan or a promissory note in which the lender, within certain limits, is given the right to choose repayment.
Offeror
The person making the offer.
Offer
A formal offer to a certain person to conclude a deal, indicating all the conditions necessary for its conclusion.
Liabilities
Obligations (with the exception of subventions, subsidies of own funds and other sources) of the enterprise, consisting of borrowed and borrowed funds, including accounts payable.
Bill of exchange (draft)
Issued and signed by the lender (drawer). It contains an order to the debtor (drawee) to pay within the specified period the amount indicated in the bill to a third party (remitter).
Payment order
The order of the payer to the bank to transfer a certain amount of money to the account of the person indicated by the payer in this or in another bank within the period prescribed by law or established in accordance with it if more short term is not provided for by the bank account agreement or is not determined by the customs of business turnover used in banking practice at the expense of the funds in his account.
Policy
The document of the insurance authority confirming the existence of the concluded insurance transaction.
Duties
Monetary amounts that are collected by specially authorized institutions for actions taken in favor of a company or individuals.
Company
A property complex used for entrepreneurial activities. In general, an enterprise as a property complex is recognized as real estate. The structure of the enterprise as a property complex includes all types of property intended for its activities, including land plots of the building, equipment, inventory, raw materials, products of the right of claim, debts, and also the rights to designations that individualize the enterprise its products, works and services (corporate name, commodity marks, service marks) and other exclusive rights, unless otherwise provided by law or contract.
Profit (loss) from the sale of products and goods
It is defined as the difference between the proceeds from the sale of products (works, services) in current prices excluding value added tax and excise taxes, as well as on its production and sale
Promissory note (solo promissory note)
It is written out and signed by the debtor and contains his unconditional obligation to pay the creditor a certain amount at a specified time and in a certain place.
Regulatory income
Incomes that are intended to support the lower-level budget, observing the subordination. The list of fixed and regulatory incomes is fixed by special tax laws and codes.
Reserves
Part of the financial resources that is intended to finance the needs that arise unforeseen and aimed at both simple and extended reproduction and consumption. Insurance reserves - a part of financial resources aimed at compensation for damage in insured events. Insurance financial reserves - financial reserves of insurance companies. These reserves are required when current funds are insufficient for payments.
Decision to issue securities
A written document registered with the state registration authority and containing data sufficient to establish the scope of rights certified by a security.
Ruble
The currency of the Russian Federation, legal tender obligatory for acceptance at face value throughout the territory of the Russian Federation.
Stocks and bods market
A part of the loan capital market where the issue and purchase and sale of securities is carried out. Through the securities market (banks, special credit institutions, and the stock exchange), the savings of legal entities, individuals and the state are accumulated and channeled into production and non-production investment of capital. Distinguish between the primary securities market, where the issue and initial placement of securities are carried out, and the secondary market, where the purchase and sale (circulation) of previously issued securities is carried out.
Savings
Legal entities and individuals that accumulate funds due to the fact that expenses are less than the accumulated funds, concentrated in the hands in the form of an individual or in bank accounts (population, enterprises and the state).
Savings (deposit) certificate
A security certifying the amount of the deposit made to the bank and the rights of the depositor (certificate holder) to receive the deposit amount and the interest specified in the certificate at the bank that issued the certificate, or at any branch of this bank after the expiration of the established period. Deposits are on demand (give the right to withdraw certain amounts upon presentation of a certificate) and urgent (which indicate the period of withdrawal of the deposit and the amount of interest due).
Collection
The compulsory fee charged from the organization and individuals, the payment of which is one of the conditions for the commission in the interests of the payers of fees by state bodies, local authorities, other authorized bodies and official types of securities. Financial market participants are savers, investors, issuers.
Financial plan
A systemic set of measures of material mediation of the functioning of the state. It is drawn up for a period of 1 to 5 years and is included in the budget. In form, the financial plan is a statement of goals, numbers and organizational proposals for the planned period. In an enterprise, planning is based on taking into account the law of value, and at the same time planning acts as an economic category. Financial plans have all the links financial system enterprises and organizations operating on a commercial basis draw up balances of income and expenses, institutions carrying out non-commercial activities - estimates, cooperative organizations, public associations and Insurance companies- financial plans, public authorities - budgets of different levels. Financial planning object is financial activities business entities and the state, and the final result is the preparation of financial plans, ranging from the estimate of a separate institution to the consolidated financial balance of the state. Each plan defines income and expenses for a certain period, links with the links of the financial and credit systems (social security contributions, payments to the budget, payment for a bank loan, etc.). All parts of the financial system have financial plans; enterprises and organizations operating on a commercial basis make up a "balance of income and expenses", enterprises and organizations operating on a non-commercial basis make up an "estimate", a plan of public associations - a "financial plan", public authorities make up the "budget" (different levels of the central, local, subjects of the Federation).
Financial performance
The amount of profit received on the invested resources. The main task is to reduce the financial intensity and increase the financial efficiency in social production... It should be remembered that an important reserve for the growth of financial resources is the improved reproduction structure of financial resources of the value of the social product.
Finance
A set of objectively determined economic relations that have a distributive nature, a monetary form of expression and materialized in monetary incomes and savings formed in the hands of the state and business entities for the purposes of expanded reproduction, material incentives for workers, satisfaction of social and other needs. The condition for the functioning of finance is the availability of money, and the reason for the emergence of finance is the need of business entities and the state for resources that ensure their activities.
Stock Exchange
A specialized organization that brings together professional participants in the securities market, creating conditions for the concentration of supply and demand, as well as for increasing the liquidity of the market as a whole. An exchange is a specific trading organization that is subject to special rules and procedures. In the process of exchange trade meetings, the market price (rate) of the Central Bank is established by special methods, information about which, along with information about the volumes of transactions made, becomes the property of wide layers of investors. In this respect, the stock exchange can be likened to a sensitive device that signals the state of the stock market, and through it, the state of affairs in the economy as a whole.
Forfaiting
Such a credit operation in which the exporter, having received from the importer the drafts accepted by the latter (bills of exchange), sells them at a discount to a bank or a specialized financial firm. When the due date for the payment of the draft is due, the importer usually pays off his debt in semi-annual installments. Traditionally, large banks are usually engaged in lending to foreign trade firms on the basis of forfeiting. By resorting to forfaiting, the exporter gets the opportunity to additionally raise funds and reduce accounts receivable. An exporter turns to the forfeiting market in the event that he fails to obtain a guarantee from a state institution, or his foreign trade contract is not sufficiently creditworthy or his own financial position does not allow you to distract funds for a long time.
Futures, or futures contract
A standard contract for the supply of goods in the future at a price determined by the parties during the transaction.
Valuable paper
A document certifying, in compliance with the established form and mandatory details, property rights, the exercise or transfer of which is possible only upon its presentation. With the transfer of a security, all the rights certified by it in the aggregate are transferred. In cases stipulated by the law, or in accordance with the procedure established by it, for the exercise and transfer of rights certified by a security, there is sufficient evidence of their registration in a special register (ordinary or computerized). Securities include a government bond, bond, bill, check, deposit and savings certificates, bearer bank savings book, bill of lading, share, privatization securities and other documents that are classified as securities by the laws on securities or in accordance with the procedure established by them. income: investment and exchange rate.
Registered securities
Securities for which information about investors should be available to the issuer in the firm of the register of securities owners.
Bearer securities
Securities, the transfer of rights to which and the exercise of the rights certified by them do not require mandatory identification of the investor's name.
Securities circulation
Conclusion of civil transactions involving the transfer of ownership of securities.
Securities issue form
The form of the issue of securities, in which the investor is established on the basis of the presentation of a properly executed certificate of the security or, in the case of depositing such, this certificate and an entry on the depo account.
Central banks
Banks that issue banknotes and are the centers of the credit system. They occupy a special place in it and are, as a rule, state institutions.
Receipt
A security containing an unconditional order of the drawer to the bank to make a payment of the amount specified in it. Only the bank where the drawer has funds that he has the right to dispose of by issuing checks can be indicated as the payer for a check. Revocation of a check before the expiration of the time limit for its presentation is not allowed. Issuance of a check does not extinguish the monetary obligation for the performance of which it was issued. The form of the check and the procedure for filling it out are determined by law and the banking rules established in accordance with it.
Emission law
A set of legal rules governing the release of money into circulation.
Emission
Issue of banknotes into circulation. On the territory of the Russian Federation, the monopoly right to issue banknotes into circulation belongs to the Central Bank of the Russian Federation.
Issuers
Legal entities that can issue securities. With the help of the financial market, savings are attracted to invest in the development of production, the implementation of state and regional targeted programs and other needs. The objective prerequisite is the discrepancy between the needs for financial resources of business entities with the availability of sources of financial resources.
Entity
An organization that owns, operates or operates operational management separate property and is responsible for its obligations with this property, may, on its own behalf, acquire and exercise property and other non-property rights, bear obligations, be a plaintiff and defendant in court. Legal entities must have an independent balance sheet or estimate and be registered as a legal entity. Legal entities can be organizations that pursue profit-making as the main goal of their activities (commercial organizations) or do not put profit-making as such a goal and do not distribute the received profit among the participants (non-profit organizations).
Agrarian price parity is the ratio between the value of agricultural and industrial products, in which the exchange between town and country is mutually beneficial.
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 - everything of value that belongs to a person, company or state as property.
Excise tax is 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.
Joint-stock company (JSC) is an economic organization, the co-owners of which can be a large number of owners of funds, each of whom receives the right to a part of its property and profits, while responding at the same time for its obligations only within the amounts that were 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 firm and confirming his rights as a co-owner of the firm's property and its future income.
Barter is a direct exchange of some goods or services for others without the use of money.
Poverty is the standard of living of a family, at which its income allows one to acquire only a small part of the standard set of goods and services for a given country, which forms the basis for determining the cost of living in a given country.
Non-cash funds - amounts stored in the accounts of citizens, firms and organizations in banks and used for settlements by changing information in documents confirming who owns what amount of such funds.
Unemployment is the presence in the country of people who are capable and willing to work for hire, but cannot find work in their specialty or find a job at all.
Benefits are all that are valued by people as a means of satisfying their needs.
Family wealth is family property, free from debt.
Accounting profit is the difference between the proceeds from sales and the accounting costs of the firm.
Accounting costs - the costs associated with the use for the needs of the firm of resources 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 - the aggregate market value of all final goods and services produced in the country per year.
Currency (exchange) rate - the price of one national currency, expressed in monetary units of other countries.
Amount of supply is the volume of a certain type of product (in physical terms) that sellers are ready (want and can) 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 has to be borne (or can receive) people or firms that are not directly involved in the sale and purchase of this good.
External public debt is the debt of public administration bodies to governments, international banks and financial organizations that provided money on a loan on the basis of government agreements.
Domestic public debt is the debt of state governing bodies to citizens, banks and firms of their country, as well as to foreigners who have bought securities of domestic loans.
Sales revenue is the amount of money received upon sale and is equal to the product of the number of goods sold by 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 a month exceeds 50% and this continues for more than three months in a row.
Government securities - the obligation of the state to return the borrowed amount plus interest for the use of this money.
Public debt is the amount of loans taken by government agencies and not yet repaid to creditors.
The production possibility frontier is the volume of production that can be achieved by a country with the fullest use of its available production resources.
Free goods are 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.
Cash capital is a portion of household savings that is transferred on a paid basis to firms to purchase productive capital.
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 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 granting of 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.
Deficit is a situation in the market when buyers, at the current price level, are ready to buy a larger volume of goods than sellers at such a price agree to offer for sale.
Deficit of the state budget is a financial situation that arises when the state plans to carry out expenditures in an amount greater than it can actually receive income from all types of taxes and payments.
Dividends are 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 state assignments that are binding on all enterprises in the country.
Natural norm unemployment - a situation when only frictional and structural unemployment exists in the country.
Natural monopolies - firms that control the entire market for certain goods or services due to the possession of a unique
A will is a legally formalized donation of wealth that takes effect after the death of its owner.
Borrowed funds (credit) - funds that are provided to the company for use for a strictly fixed time and at the fee specified 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 amount 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 amount of supply, and a decrease in prices - to its decrease.
The law of demand - an increase in prices usually leads to a decrease in the amount of demand, and a decrease in prices - to an increase (all other things being equal).
Engel's Law - as families' incomes grow, the share of spending on food usually decreases, on everyday goods it stabilizes, and on education, medicine, recreation and entertainment - it increases.
Earth - all types of natural resources available on the planet and suitable for use in the production of economic goods.
Excess (overstocking) is a situation that arises in the market when, at the current price level, sellers offer for sale a larger volume of goods than buyers are willing to buy at that price.
Import is 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.
Individual offer - an offer with which an individual seller enters the market.
Individual demand is the volume of purchases that an individual buyer is ready to make on the market at a given price level.
Inflation is the process of raising the general level of prices in a country, leading to the depreciation of money.
Information is all the information that people need for conscious activity in the world of economics.
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 is a method of market monopolization, consisting in the conclusion of an agreement between manufacturers of a homogeneous product 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 that carries out activities on: 1) accepting deposits; 2) provision of loans; 3) organization of settlements; 4) purchase and sale of securities.
Competition is economic competition for the right to obtain a larger share of a certain type of limited resources.
Indirect tax is a levy in favor of the state, which is taken from citizens or economic organizations only when they carry out certain actions.
Credit issue - an increase by the 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 the 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 the loan, the payment for using it and guarantees of the money back to the bank.
Creditworthiness - the borrower's willingness 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 is the degree of ease with which an asset can be converted into money by an owner.
A lobby is a form of legal defense of the interests of a certain group of firms or citizens of a country through the formation of factions of deputies in the legislative bodies of power.
Manager - a hired manager of a firm, accountable to its owner.
The price mechanism is the formation and change of market prices under the influence of a clash of interests of buyers and sellers, who make their decisions without external coercion.
Market monopolization is a situation when one of the sellers or buyers accounts for such a large share of the total volume of sales or purchases in a particular commodity market that it 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 price parity violation, that is, the difference in the growth rates of prices for agricultural products and industrial products for the countryside.
Cash - paper money and loose change.
Taxation is a mechanism for the withdrawal of part of the income of citizens and firms in favor of the state for solving national problems.
Wealth inequality is the difference in the amount of regularly received nominal income (per family member) and the market value of property owned by families.
Nominal income is the amount of money received by a citizen or family as a whole for a certain period of time.
Normal profit is the income that could actually be received by the owner of capital when investing 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 amount of demand increases with an increase in the income of buyers.
Loan security (collateral) - property of the borrower, which can be seized from him by the bank and sold to cover those debts of the borrower, which 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 someone else's exclusive property.
Total costs - the cost of acquiring the entire volume of resources that the firm has already used to organize the production of a certain volume of products.
The amount of need is the amount of goods of a certain type that a person would like to receive to satisfy his needs, if these benefits were available free of charge and without restrictions.
Limited (economic) goods are means of satisfying human needs, which can be created only through the input of production factors and 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 crowded out other rivals.
An industry is a group of firms that produce similar or identical products.
Variable costs are those costs that increase (decrease) with any increase (decrease) in production volumes.
Takeover is a method of market monopolization, which consists in buying up competing firms and including them in a firm seeking to become a monopolist.
The purchasing power of money is the amount of goods and services that can be purchased for a certain amount of money at a given time.
Fixed costs are those costs that remain the same for small changes in the volume of production of goods or services.
Needs are a specific form of manifestation of human needs, depending on living conditions, skills, traditions, culture, the level of production development and other factors.
A duty is a payment levied by the state from citizens and economic organizations for providing them with a certain type of service or issuing a permit to carry out certain activities.
Private property right 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) obtained from the additionally used unit of the good.
Marginal (marginal) costs - the real amount of costs, which costs the manufacture of each additional unit of production.
Supply - the dependence of the supply values on the market of 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 largely at his own expense, creates a company.
Entrepreneurship is a special kind of services 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 required to produce and organize the sale of these goods and services.
Preferred share - a security, the owner of which has the right to dividends of a fixed amount, 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 trading partners.
The principle of relative advantage - it is more profitable for each country to export those goods for which its prices of choice are relatively lower than in other countries.
Progressive income taxation is a financial mechanism used to solve two problems: collecting funds for the needs of the country and smoothing out differences in the levels of well-being of families.
Subsistence minimum - the amount of money necessary for a person to purchase the amount of food that would allow him to survive, as well as satisfaction at a minimum
Productivity is the amount of benefits that can be obtained from the use of a unit of a certain type of resource over 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 to protect domestic producers of goods from competition from firms in other countries through the establishment of various kinds of restrictions on imports.
Trade union(trade union) - an organization representing the common interests of employees of certain professions or a certain industry in negotiations with entrepreneurs.
Direct tax is a levy in favor of the state levied on every citizen or business organization.
Work force- the total number of citizens of the country of working age who have a job, and citizens who cannot find work for themselves.
Equilibrium price- the price at which the volume of goods that manufacturers (sellers) agree to offer for sale at such a price coincide with the volume of goods that buyers agree to buy at such a price.
Distribution - the provision of resources between firms, and the goods produced - between people in accordance with some criteria by which these people have the right to receive such benefits.
Real income is the amount of goods and services that a citizen or family can purchase in a certain period of time for their nominal income.
Reserve requirements - the mandatory proportion of the formation of partial reserves established by the central bank of the country.
Rent is a general name for the income of land owners and owners of other factors of production, the amount of supply of which is rigidly fixed.
Market - all activities related to 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.
The market of monopolistic competition is 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 on the market by only one seller.
The labor market is 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 collision 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 to be able to influence sales volumes and the market price in their own interests.
Market pure monopoly- a situation when there is only one seller on the market.
Market supply - the total supply of goods on the market by all sellers.
Market demand- the total volume of purchases that all buyers are ready to make on the market at a given price level.
Savings - the balance of income after all expenses related to current consumption have been paid.
The velocity of circulation of money is the number of times that each monetary unit participated 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 in private ownership, and the distribution of limited resources is carried out both by markets and with significant participation of the state.
Equity capital - funds that are provided to a firm in exchange for the right to co-ownership of its property and income, and therefore, as a rule, are not subject to return and generate income that depends on the results of the firm's work.
Aggregate supply - the total amount of final goods and services that firms in a country can and are ready to offer to the market within a certain period of time at: 1) the prevailing price level in the country; 2) existing technology; and 3) available resources of all kinds.
Aggregate demand is the total amount of final goods and services of all types that all buyers of the country are ready to purchase within 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 is the dependence of the values of demand in a given commodity market on the prices at which goods can be offered for sale, which has developed in a certain period of time.
Wage rate - an amount of money paid to an employee for labor services provided to him during a certain period of time (hour, shift or month) or necessary to perform a certain amount of work (for example, making one part).
The cost of living is the amount of money that it costs to purchase a set of goods and services that is standard for most families in a given country over a certain period of time (usually a month).
"Shadow economy" is an economic activity carried out in such a way as not to pay taxes to the state.
Customs duty is a tax levied in favor of the state treasury from the owner of foreign-made goods when these goods are imported into the country for sale.
Current (perpetual) deposits - funds transferred by their owners for temporary storage to the bank with the granting of 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 to the price at which the goods are sold by the manufacturer.
Trade is a voluntary and mutually beneficial exchange of the results of specialized production of goods.
The traditional economic system is a way of organizing economic life in which land is in the common possession of the tribe, and limited resources are allocated in accordance with long-standing traditions.
Transactional (organizational and contractual) costs - the expenditure of time, effort and money to find a supplier of resources or services, conclude an agreement with him on prices and other terms of the transaction and control that it is carried out.
Transfer is an amount of money transferred by the state to the poorest citizens to improve their standard of living and formed at the expense of funds withdrawn through taxes from wealthier citizens.
Labor - the use of mental and physical abilities of people to carry out work related to the production of economic benefits.
The severity of labor is a measure of the physical and nervous complexity and fatigue of performing professional duties.
A service is an intangible benefit in the form of activities useful to people.
Factors of production - the resources used by people to create the benefits of life.
Physical capital - buildings, structures, machines, amelioration systems used to transform the substances of nature into benefits useful to people with the help of technologies.
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 where money is bought and sold to acquire the physical capital of firms.
Firm finances - the relationship between cash expenditures and cash receipts of the firm.
A firm is an economic organization created specifically to produce goods and sell them to the market for a profit to their owners.
The price of choice (opportunity cost) is the value of the most preferred of the goods, the receipt of which becomes impossible with the chosen method of using limited resources.
The price of money capital is the amount of income (interest) that the firm must provide to the owners of the savings, so that they agree to provide them 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.
Partial reserve - the proportion of deposits made to the bank that it must and can constantly have at its disposal in order to be able to fulfill its obligations to depositors under normal operating conditions.
Human needs - the range and volume of benefits that people would like to receive to satisfy their needs, if these benefits 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 is a part of profit that remains at the disposal of an economic organization after taxes and other mandatory 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 proceeds and economic costs.
Economic efficiency is a method of organizing production, in which the costs of producing a certain amount of products are minimal.
Economic systems are forms of organization of the economic life of society, differing in: 1) the way 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 the production capacity of a country.
An economic cycle is a period of time during which a country's economy goes through two main phases: boom and bust.
Export is the sale of goods produced by sectors of the domestic economy to residents of other countries.
Price elasticity of supply - the scale of the change in the amount of supply (in%) when the price changes by one percent.
Price elasticity of demand is the scale of the change in the amount of demand (in%) when the price changes by one percent.
Bank of issue - a bank that has the right to issue (issue) national currency and regulate monetary 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 the price (or an increase in income), the product becomes cheaper in relation to the total amount of a person's income, and therefore the buyer is able to purchase this product in larger quantities without giving up his other usual purchases. And vice versa.
Economies of scale - a situation when a firm has the ability to increase the volume of its output to a greater extent than the volume of all the resources it uses.
In everyday life of a modern person who wants to be financially literate, you have to know and use economic terms. What is it for? For example, you come to the bank where you conclude a loan agreement - knowledge of the basic concepts will help to avoid deception and misunderstanding, will allow you to know in advance all the moments of upcoming cooperation and save your budget. Economic terms and concepts and their definitions are given not as in textbooks, but in a form accessible to everyone.
Financial terms and definitions that are useful in everyday life
If you work, visit shops, save money, rent a house, these terms will be useful:
- Advance payment is a part of the salary that is provided to the employee, usually at the end of the month. It is used taking into account the fact that, according to the law in the Russian Federation, salaries are paid twice a month;
- Excise is a tax paid indirectly. For example, with tobacco, alcoholic beverages, fuel prices. Most of the cost is accounted for by excise taxes;
- - tax that is paid on the income of an individual. The rate is 13%, salary, benefits from the sale of property and any funds received by a citizen are taxed;
- - an indirect tax that the consumer pays in stores and when buying goods. So, buying a chocolate bar for 100 rubles, you contribute 18 of them to the budget. Depending on the policy of the outlet, the rate may be different;
- Net - weight without packaging material;
- Inflation is a depreciation of the currency, in Russia in 2017 the ruble fell by almost 3%, but real pace many times more.
Financial terms and definitions, of course, do not need to be taught literally, you just need to understand their essence.
Terms and definitions for a novice businessman
If you decide to open own company or while you are just looking at the field of business, these terms will be useful:
- - a security that allows you to receive a part of the company's income, to take part in management;
- Depreciation - recalculation of the value of the depreciated property. For example, you are using a machine, the service life is 10 years. During this time, it is necessary to deduct its cost in equal payments to the amortization fund in order to buy a new one in case of failure;
- Assortment of goods - a list of products manufactured by the company;
- Bankruptcy - the bankruptcy of a company, the procedure for recognizing a company that is not able to pay the bills is carried out through the court;
- Accounts receivable - the debt of counterparties to you. Imagine delivering meat products to stores on a deferred payment basis - payment takes place within a week from the date of shipment. All this time the receivables will hang;
- Personnel of the company - the staff of employees employed at the enterprise;
- Crowdfunding is the collective financing of a project, mainly through the Internet. The author comes up with a proposal, a unique idea, all interested parties can invest and make a profit in the future;
- Bidding is a form of procurement in which a competition is announced, and the best company is selected based on the results. For example, the state arranges a tender to find a contractor for the construction of a federal highway;
- Net profit is the company's income after deducting taxes, wages, rent, and other expenses.
It is not necessary for an entrepreneur to know the terms, since today accounting and financial services are provided in every city. Beginners can turn to the pros for help.
Terms used by banks and credit institutions
The concepts that are used in lending, opening deposits, cooperation with banks will help everyone to understand this industry:
- Annuity payment - the amount of the debt is paid evenly over the term of the loan. Used more often for loans, mortgages;
- BCI is a bureau where credit histories are stored. You can go here and get your own loan history;
- Differentiated payment - interest is charged only on the remaining debt, the amount will decrease monthly. It is used more often for credit cards;
- with state support - provided at a reduced rate for the military, teachers, young families and other categories of borrowers. Part of the interest is financed by the state;
- Credit history - a list of all borrowed loans, the history of payments on them from a particular borrower. Based on the CI, the bank decides whether to satisfy the application or not;
- – bonus program when part of the spending on cards is returned in the form of bonuses;
- - rental of property, for example, a car. At the end of the contract, the object can be redeemed at its residual value.
- - obtaining a loan for a loan in order to reduce / increase the repayment period, reduce the amount of payment, overpayment.
However, there are other terms that may come in handy. Before signing a contract with incomprehensible words, you need to find out what they mean.
Macroeconomic terms - learn about the finances of the country
It would seem, why do we need to know about the processes taking place in the country? In fact, they also concern us - ordinary citizens, so the terms will not be superfluous:
- State revenues - funds received by the budget. Sources are taxes, loans, currency and securities issues;
- - depreciation of the currency in relation to gold;
- - non-fulfillment by the country of its obligations, for example, non-payment of debt, refusal to pay on bonds;
- Grants - funds provided to the budget of the constituent entities of the Russian Federation or municipalities to finance current expenses. For example, the region plans to build a bridge, and the state provides money for this purpose;
- Discount rate - the interest at which the Central Bank issues loans to other banks in the country.
The number of definitions used at the state level is, of course, wider, processes related to finance, both external and internal, take place here. Taxes, the credit system, business, the main aspects of human activity are regulated.
The study of economic terms, their definitions is an opportunity to increase financial literacy, to better understand many processes. However, their number is so impressive that it is not possible to consider all the concepts within the framework of one article. For self-education, it is recommended to find out the meaning of the terms that you meet in everyday life.
A
Absolute level of commodity prices- the weighted average level of current prices in the country
Aval- bill of exchange
Letter of credit- ordering one bank to another to pay to a third party against documents
Letter of credit statement- written application from the letter of credit to the issuing bank for opening a letter of credit in the name of the beneficiary in the amount and for the period specified in the purchase and sale agreement
Balance asset- the left side of the balance sheet, reflecting the allocation of available resources.
Acceptance- consent to pay for documents, which can be carried out in writing on the accepted document or tacitly, i.e. within the period established for acceptance, the acceptor does not submit in writing a statement of refusal to accept.
Acceptance-aval transactions of commercial banks- operations of banks on issuance on bills of exchange of acceptance or aval. Acceptance-avalanche transactions refer not only to passive, but at the same time to active operations of the bank, since the same amount of funds is simultaneously reflected in the bank's assets as the amount of its claims to customers, whose promissory notes it has accepted. At the same time, if the bills of exchange are accepted by the bank, then its clients, on whose instructions the bank carried out the acceptance of the bills, must, before the expiration of the payment term on the bill, deposit the amount due under the bill to the bank in order for the bank to make the payment on the bill. If the bank has availed the bill, then the persons obliged under the bill (the bank's clients) are obliged to pay the bill to the bill holder, bypassing the bank, since by avalifying the bill, the bank vouched before the bill holder for the timely payment of the bill by the person obliged under the bill.
Stock- securities with the help of which the joint-stock company creates a statutory fund ( share capital). Precisely because with the help of stocks statutory fund enterprises, shares are classified as stock securities.
Joint Stock Bank- a bank, the authorized capital of which was formed at the expense of funds from the issue of shares.
Joint-stock company- a corporation that created its authorized capital on the basis of the issue and placement of shares.
Underwriting(underwriting) - guaranteed placement of securities of issuers commercial bank(underwriter) among its clients with the subsequent resale of these securities to other buyers in order to make a profit.
Anticipation- anticipation (guessing) of something expected, premature occurrence of an event or exercise of the right before its approval.
Assignments- the 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 Elizabeth Petrovna, the Senate found that "... it would be reprehensible that bills of paper would be circulated instead of money, and it would be dangerous so as not to give reasons for bad reasoning in the future." Nevertheless, the banknotes put into circulation existed for almost 100 years, until 1851.
B
Basel Agreement on International Capital Standards - adopted in 1987 - 1988. banking regulatory bodies of the United States, Canada, Japan and leading industrialized countries of Europe, such as Belgium, Great Britain, Germany, Italy, Luxembourg, the Netherlands, France, Switzerland, Sweden, which has established risk-based capital adequacy standards 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 quotation base. Accordingly, with a direct quotation used in Ukraine, the record of the exchange rate of the hryvnia to 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, the prices of which fluctuate sharply depending on the season (milk, eggs, fruits and vegetables of the summer range; energy resources, prices for which may sharply deviate 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 households' expectations; other components of the consumer basket, the prices of which have significant fluctuations depending on external and internal price shocks. inflation is understood as the 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 prime rate (eng. 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 planning period based on the estimated profitability and cost of loans provided by the bank to first-class borrowers under reliable security.
Balance- accounting report on financial condition enterprises, organizations, institutions, including the bank.
Bank note- a full-fledged representative of real money (gold), value and price. Therefore, the banknote was considered by Karl 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 in the country, interconnected by correspondent relations.
Banking acceptances- the bank's obligations to pay their holders certain amounts of money specified in the accepted document at a specified time and within a specified period.
Bank loan- economic relations between the lender and the borrower regarding the return movement of the loan value issued by banks to individuals and legal entities
Barter- moneyless commodity exchange.
Cashless payments- calculations based on the movement of the loan
Billon coin(fr. 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.
V
Currency- the national currency of a country or the collective currency of a region or union of countries.
Quote currency- currency, the rate of which must be determined.
For example, with a direct quote that exists in the vast majority of countries, in the exchange rate of the Ukrainian hryvnia to the US dollar (USD / UAH), the hryvnia is the quote currency, and the quote base is the US dollar.
Foreign exchange 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 mode) established by the authorized bodies for performing currency transactions with currency values by subjects of currency relations.
Currency restrictions- restrictions or prohibitions on the implementation of certain transactions with currency values by residents and / or non-residents
Currency values- values according to which the law establishes the procedure for the transfer of property 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 papers (stocks, bonds and coupons to them); bank metals of the highest standards in accordance with world standards (in bars, coins and powders); loan market securities (certificates of deposit, passbooks, etc.).
Currency corridor- the limits of the exchange rate established by the legislation of the country (or an agreement between the countries) within the boundaries of which the exchange rate of a given country may deviate (float) in relation to the exchange rate of the reserve currency. The country's central bank 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 band. The currency band regime is known to the world community as the European Currency Snake (EMA). The European currency snake is a regime of jointly fluctuating exchange rates of six member countries of the EEC (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 the two currencies
Currency (gold) parity- the ratio of the weight content of the noble metal in the compared currencies, legislatively fixed by the respective states for their monetary units, regardless of whether coins are minted from noble metals in their countries or not.
Veveritsa(veksha) is the smallest monetary unit in Ancient Russia.
Promissory note- an unconditional, unspecified obligation to pay at the due date specified in the bill of exchange, the amount indicated in it, to the specified person.
Money Market Mutual Funds- trust (trust) organizations created as joint stock companies (open and closed type) and receiving funds in trust from the population on the basis of the sale of securities to them. The funds raised by trust organizations are used to buy short-term fixed income securities or place them in a bank in a time deposit account.
Mutual investment funds- are investment dealers in the securities market and by their form of organization are open joint stock companies. A feature of these investment dealers is that they invest funds raised through the issue of their shares in securities of other issuers, mainly in shares of large corporations, and more recently in government and municipal bonds. At the same time, some investment dealers, accumulating attracted funds, invest them in stocks, others - in bonds, not to mention the industry specialization of investment companies and funds. It is pertinent 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 establish a mandatory reserve requirement either. Investment-type mutual funds differ from money market mutual funds primarily in that the latter sell their shares at a fixed price, as opposed to investment-type mutual funds, which sell their shares at a market price, depending on changes in the rate of lending.
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 issue of cash provided by the law or the planned rate of price growth.
Internal limits of inflation- are determined by the disadvantage for the issuer to increase cash or non-cash emission of money.
Universal equivalent- the 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 converted into cash at any time with minimal losses for the bank. Secondary liquidity reserves primarily include government securities in the bank's portfolio.
Secondary securities market- a securities market in which securities are offered for sale not by the issuers of these securities, but by intermediaries financial market(dealers, brokers).
G
Galloping inflation- characterized by a rapid and abrupt rise in prices and a sharp decline in the purchasing power of the population.
Hyperinflation- characterized by a super-fast rate of price growth and a practical loss of purchasing power by money. Accordingly, the first to lose their purchasing power are banknotes of low denominations and bargaining chips. In the future, the same fate befalls banknotes of larger denominations. Under such conditions, commodity producers put the future depreciation of money into 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 (internal government bonds - government bonds with a specified maturity and yield level).
State loan- economic relations regarding the return movement of the loaned value in which the state always acts as the borrower, and the lender is the population and legal entities... Government loan instruments are government loan bonds.
Gran- previously used unit of pharmaceutical weight; old Russian measure. 1 grain = 1/20 scruple = 0.062 g.
Borders of loan use- 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, the limits of the use of credit at the macro level cannot be equated with the macroeconomic limits of credit, which simply cannot be established. The same applies to the boundaries of the use of credit at the micro level.
Loan limits- the limits of the existence of a loan - can be external (intercategorical) and internal (temporal and spatial).
Borders of loan interest- limits of lending interest.
There are upper and lower limits of the lending interest. The upper limit is determined by the average rate of profit, and the lower one can be as small as you like, but when it drops very much, then market mechanisms come into play and raise the lower limit of the loan interest Kiev hryvnia- a silver hexagonal hryvnia weighing 38 zolotniks or about 160 grams, circulated in the Kiev principality since the 10th century.
Hryvnia kun- is mentioned in the annals of ancient Russia, and just like the grivna of silver (equal to it in value) was used in circulation. Accordingly, the silver hryvnia was a monetary unit by weight, and the kun hryvnia was a countable unit. Hryvnia (hryvnia of silver or hryvnia of kun) = 20 legs = 25 or 501 kuns = 50 rezans = 100 (150) veverians.
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 the Novgorod hryvnia - 48 spools. From the Moscow hryvnia, 200 silver coins were minted - "Muscovites" weighing 1.02 g.
Hryvnia Novgorod- a bar of silver weighing one pound (96 spools) and 20 cm long. 200 silver coins each - "Novgorodok" weighing 2.04 grams were minted from the Novgorod hryvnia.
Hryvnia UNR(Ukrainian People's Republic 1918-1919) - was put into circulation in October 1918 in the form of cash tickets of 6 denominations from 2 to 2000 hryvnia and existed for 4 months (until February 1919). The hryvnia contained 100 kopecks. Since February 1919, the state bank and the treasury of the UPR have been evacuated and information about the fate of their property, including the hryvnia, is lost.
Hryvnia of independent Ukraine- paper money introduced into circulation on September 2, 1996 as the national currency of the country. Contains 100 kopecks.
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, Czech Republic, Austria-Hungary, Poland, etc.). However, the content of silver in the coins of different countries was not the same and was constantly decreasing due to damage to the coins. By the end of the 18th 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 Polish-Lithuanian Commonwealth for almost 100 years), the most common currency among the population was a copper penny. As a result, the name "penny" is acquiring in the Right Bank, and then throughout Ukraine, a common noun for all types and forms of money.
Goodwill(goodwill) - the good name of the company, its image, testifying to the reliability and financial sustainability firms.
D
Debit- the name of the left side of the accounts. The debit of active accounts reflects the records of transactions that increase the account balances, and the debit of passive accounts records the transactions that cause a decrease in account balances. For example, for all passive bank accounts, including current accounts of enterprises, payments of the account holder are shown in debit.
Debit card- is a potential electronic alternative to cash, checks and credit cards in retail outlets. Unlike credit cards, debit cards allow you to deposit money into a card account using them.
Devaluation- (from the Latin valeo - value and the prefix de-, meaning a decrease) is a decrease in the exchange rate of national money in relation to 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 undervaluation of the exchange rate of the 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 to the transaction.
Motto policy- artificial increase or decrease in the rate of the national currency, for example, with the help of foreign exchange intervention, that is, the sale or purchase of foreign currency by the central bank in the domestic market of its country. Moreover, if the central bank sells large amounts of foreign currency in the domestic market of the country, then the rate of the country's national currency rises. If the central bank begins to buy up foreign currency on the domestic market of the country, then the 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 long-term passive or when prices in the country are continuously rising, 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 of paper, but which are full representatives of real money.
Demonetization- gradual loss money metal all functions of money. Demonetisation of silver took place 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's charter, the official price of gold and all functions of money were legally abolished.
Denarius- (from Lat. denarius, consisting of 10) ancient Roman silver coin weighing 3.41 g of pure silver.
Monetary base- an indicator of the money supply in circulation. Consists of central bank cash, cash in circulation outside the bank and commercial bank deposits (required reserves) with 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 amount of money tickets and coins made of base metals, which reflects the nominal value of the money supply, issued into circulation. However, cash reserves in central bank vaults are not included in the monetary base. Along with cash, the monetary base also includes the required reserve fund, created in the central bank at the expense of commercial banks.
Money supply- money supply in the country. Consists of cash outside banks and deposits from commercial banks.
Currency unit- under the gold standard, the monetary unit was understood as the weight amount of metal legally established in the monetary unit and by which the quantities of gold mentally represented in the commodity were measured and commodity prices were established. After the demonetization of gold, the currency is understood as the name of the national currency and its samples.
Monetary reform- full or partial change in the elements of the country's monetary system.
Monetary system- the legally established structure of monetary circulation and monetary circulation.
Money supply- the same as the money supply created by 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 types of quasi-money.
Cash tickets- debt obligations of the central bank in circulation.
MO money supply- the nominal value of cash in circulation (outside banks).
Money supply M- the nominal value of cash outside banks and transaction deposits not owned by commercial banks. Narrow money supply.
Money supply M nib- applies in the UK and includes cash in circulation and deposits that do not generate income.
Money supply M- the nominal value of the sum of the monetary aggregate M and Mn ("almost" money). Broad money supply.
Money supply M- the nominal value of the sum of the monetary aggregate M and SDR (money market funds). Broad money supply.
Money supply L (M)- the nominal value of the sum of the monetary aggregate M and TFR (credit market funds).
Money supply 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 monetary unit of the initial excess reserves.
Cash flow 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 payment of funds into the circulation of capital.
Country money turnover- a continuous process of movement of money in their relationship and interdependence (cash and non-cash forms) between the subjects of economic relations.
Money turnover- the movement of cash in the exchange of goods in the execution of acts of purchase and sale in cash.
Monetary regulation- maintaining the stability of the national monetary unit and the country's economy with the help of monetary regulation instruments (transactions on open market, central bank discount rate, reserve requirement, market interest rate, restrictions or prohibitions on different kinds banking).
Monetary scale- the content of the number of change coins established by law in one national currency. Since the decimal measurement system is currently accepted all over the world, national monetary units consist of 100 cents, pence, groszy, kopecks, etc.
Money market- a set of banks, non-bank credit institutions, stock and currency exchanges, accumulating cash flows from firms and households, with their subsequent provision to commercial basis at the disposal of other firms and households.
Money outside the banks- cash in circulation.
Money is a net commodity- money tickets that do not have their own value and therefore do not have the main property of the goods - the unity of use value and value. In addition, modern money is not a commodity also because money is not produced for sale and does not have a price (and there is no commodity without a price).
Money market deposit accounts- special deposits in depository institutions, similar to money market mutual funds.
Certificate of Deposit(English Certificate of Deposit) - a security, which is a certificate of a legal entity making a large contribution to the bank for a period of at least one year, after which the bank undertakes to redeem the certificate with payment of 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 the change in the general level of prices 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- decrease in the general level of prices in the country in any period.
Diversification(Latin 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 capital losses or income from it.
Discount(English discount - discount, discount percentage, accounting rate) - discount interest charged by banks when accounting for bills; the difference between the nominal value of the 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 customer service by the bank- involves the provision of banking services to clients on the basis of remote orders received from the client regarding the execution of specific operations by the bank: payment and / or informative, which are transmitted by clients to banks through the access channels agreed with them, without the client visiting the bank. Remote servicing is carried out using the "client - bank", "client - Internet bank" systems and the "telebanking" system. The legal basis for the bank's remote servicing of its customers is an agreement between the bank and the client on settlement and cash services, which, in addition to specifying 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 also called trust. The essence of trust operations is that the entrusted property is transferred to the trustees, who must manage it solely in the interests of the grantor, which is the highest priority for trusts. The number of trust operations carried out by banks include: temporary management of the 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 for storage; liquidation of the property of bankrupt enterprises; registration of newly issued securities; management of securities, etc.
Contractual discipline- lies in the fact that all business entities must comply with the terms of the contracts signed by them. 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 commodity delivery and the payment made in accordance with the contract (sale and purchase, contractual write-off, etc.).
Contractual withdrawal of funds- involves the acquisition by the supplier of the opportunity to exercise his right to actually receive payment, after the due date payment (i.e. for a delayed payment) by submitting a payment request, paid without acceptance by the bank debiting funds on the basis of an agreement concluded between the bank and the payer.
Long term loans- loans granted for a period exceeding 3-5 years.
Households(English household - household) - independent economic units. Individuals in 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 settlements of a non-commercial nature. Traveler's checks are issued in various denominations in national and foreign currencies. Since traveler's checks are not legal tender in another country, their purchase and acceptance in other countries is ensured by an agreement between the issuer and the bank (s) of the other country.
E
Euro- (EUR from the first letters of the English. European - European or Euro) is the collective currency of the countries of the European Union (EU). Euro currency- the national currency of a country that has emerged from its jurisdiction, which is in accounts with banks in other countries and is provided as loans to third countries. Unified money turnover of the country- the same as the country's money turnover.
Z
Loans in Eurodollars- liquid assets, similar to repurchase agreements (Repo), used for operations with dollar funds that have come out of the jurisdiction of the United States and held on accounts with commercial banks in other countries and provided as loans to third countries.
Borrower- a natural or legal person who received a loan.
Gresham-Copernicus law- says that "the worst money drives out of circulation the best" or, in other words, less valuable money always drives more valuable money out of circulation.
The law of money circulation- discovered by K. Marx says that the amount of real money required for circulation is directly proportional to the sum of the prices of circulating goods and inversely proportional to the rate of turnover of monetary units of the same name.
Kn law- the same as the law of monetary circulation discovered by K. Marx.
The law of the value of money- Derived from the law of monetary circulation, discovered by K. Marx, says that how many times the actual number of money tokens (banknotes) will be more than the amount of real money required for circulation, so many times the value of each monetary unit of the money sign will be less than the value of the actual monetary unit ( gold) money.
Closed minting of coins- minting of coins by the state from metal belonging to it.
Pledge- a means of securing the fulfillment of the obligations of the borrower by the property pledged for the loan. If the loan is not repaid within the period specified in the loan agreement, the bank has the right to sell the pledge and, at the expense of the proceeds from its sale, repay the obligation and accrued interest, and return the rest to the borrower.
Closed currency- currency, the issuing country of which has introduced currency restrictions for both residents and non-residents. Such a currency is not used in the major foreign exchange markets in the world.
Offsetting mutual claims- a form of non-cash settlements in which mutual claims for coinciding amounts can be mutually offset and, accordingly, paid off, and the difference arising on the basis of offsetting the amounts of mutual claims is paid to the offset participant who, ultimately, turned out to be a creditor in relation to other settlement participants ...
Zlatnik- the first Russian gold coin circulated in the Kiev principality in the 10th century. The chasing of the goldsmith was of an episodic nature. The weight of the zlatnik is about 4.2 grams; later it was used as the basis for the weight unit - the spool, equal to 1/96 of a pound.
Money signs- banknotes, which 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 pound or 4.26 g.
Gold coin standard- a kind of metallic type of monetary system. Distinguished between the gold coin standard, the gold bullion standard and the gold exchange standard. Under the gold coin standard, there was a free minting of coins with a fixed gold content of the monetary unit established by law, which contributed to the flow of gold into the country's monetary system. Money signs - banknotes, were freely exchanged for gold coins at face value. Therefore, the extra banknotes in circulation were exchanged for gold (according to Karl Marx), and the coins, without depreciating, went to the treasures.
Gold bullion standard- a kind of metal type of the country's monetary system in which gold coins were absent in circulation, and banknotes, like gold signs and value signs, 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 absent in circulation, and the banknotes in circulation were not exchanged directly 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 less 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 certifying the contribution of a certain amount to an investment company or investment fund and entitling its holder to receive income in the form of interest.
Consumer price index(CPI) is an indicator of the inflation rate in a country. It is calculated as the ratio of the value of the consumer basket of the current year to the value of the consumer basket of the previous (or base) year (in percentage).
Endorsement- endorsement on personal and order checks and bills.
Endorser- the person making the endorsement.
Endorser- the person in favor of whom the endorsement is made.
Collection card index- card file of settlement documents received for collection. In the planned economy, there was a card index number 1 on urgent documents, received for collection, and card index number 2, the so-called "black card index" for documents overdue.
Collection operation-Acceptance by the bank on behalf of the client (supplier of goods or services) of obligations to fulfill the workflow and collect payment. A collection operation was used for settlements with payment requests. Today it is used in settlements by checks, in the form of letters of credit and in the accounting (discounting) of bills.
Money market instruments- mainly represented by such instruments as fixed-term (in 1-12 months) repo, shares of money market mutual funds and other instruments of the latter.
Credit market instruments- bank 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- is associated with excessive growth in the aggregate demand for goods and services, which cannot keep up with the volume of production. As a result of excess demand, the balance of commodity and money supply is carried out through the price mechanism and, accordingly, prices increase 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 the reduction in the aggregate supply of goods and services, the mass of commodities decreases, although the aggregate demand remains unchanged, as a result of which prices rise.
Mortgage- a specific type of security for the issued loan, represented by real estate ( land plots, buildings, marine 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.
Currency usability- the property of a 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 currency was introduced at the Jamaican Conference to replace the term “convertibility” of currency, that is, 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- a short-term government security sold at a discount and redeemed at par.
Capital-making theory of credit- reflects the idea of the priority of active operations over passive ones (and the ensuing far-reaching autonomy of banks in granting loans). The mechanism for creating capital is that a deposit on the current account (in the form of a record on it, recorded on the bank's balance sheet liabilities) can be created due to the previous (the occurrence of the deposit) issuing a loan (recorded on the bank's balance sheet asset). 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 was part of the USSR. The gold content of karbovanets and its purchasing power within the USSR were the same as for the Soviet ruble and for the national currency 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 introduced karbovanets as its national currency, which was then (in 1996) replaced by the hryvnia.
Cash on hand- money tickets and small change that are in 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 that can be converted into cash without loss within one day. Quasi-money includes such as savings deposits, one-day buyback agreements, one-day loans in Eurodollars, etc.
Cambridge Equation(Мс = кРУ) is a mathematical expression of the demand for money through the coefficient k, which is inverse to the speed of movement of money (Тс = 1 / Y), and reflects the share of demand for money in the total amount of the portfolio of incomes of economic entities.
Classifier of foreign currencies NBU- 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 to the need, first of all, to reduce the volume of transmitted interbank information and its error-freeness. The NBU foreign currency classifier was first introduced in Ukraine in 1998 by the Resolution of the NBU Board No. 34, approved on 4.02.98. Subsequently, changes were made to the Classifier.
Classical quantitative 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 quantitative theory assumes that the speed of money and the volume of production are stable. Accordingly, under such conditions, changes in the money supply directly affect 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 also with other countries that are not part of the union of these countries or the monetary 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 the rates of the buyer and seller. A commercial rate is a market exchange rate that changes under the influence of supply and demand for a currency at any given time.
Monetary Aggregate Components- 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- a change in the initial conditions of government loans: the method of repayment, the currency of payment and the yield, as a rule, in the direction of its decrease.
Currency convertibility- free exchange of banknotes for money metal (gold or silver). Currency convertibility does not currently exist, since both monetary metals have been demonetized. Therefore, with the signing of the agreement on the demonetization of gold, the IMF introduced the term "use" of currencies in the world's main foreign exchange markets, thereby emphasizing the full (or partial) exchangeability of some currencies for other currencies.
Consolidation- transformation of short-term government loans into long-term or perpetual. At the same time, unification (combining several loans into one) and conversion of loans can be performed.
Currency basket- the method of calculating the weighted average exchange rate of the monetary unit in relation to the set of currencies in the basket. At this method calculations are taken into account specific weights currencies in the basket and their 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 to the world community.
Correspondent account- the current account of one bank in another bank.
Indirect funding- the movement of financial sources of funds (household savings) from households to firms, enterprises and institutions through intermediaries of the money (financial) market.
Currency quotation(fr. coter to number, mark) - setting the exchange rate. When quoting a currency, the ratio of the purchasing power of the two currencies is established. In this case, one of the two correlated currencies will be the quotation base, that is, the currency with which the second (quoted) currency is compared, the rate of which is being determined.
Indirect quotation of currencies- the ratio of the national currency to foreign. In an indirect quotation, in which the national currency is valued in foreign currency, the quotation base will be the national currency, and the quoted currency is the foreign currency.
Direct quotation of currencies- the ratio of foreign currency to national. In a direct quotation, in which the foreign currency is valued in the national currency, the quotation base will be the foreign currency, and the quoted 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 speed of movement 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 character of modern money-net-commodity money tickets and money recorded in bank accounts.
Account credit- the name of the right side of the accounts. The credit of active accounts records transactions that reduce the account balances, while the credit of passive accounts records transactions that increase the account balances. For example, for all passive bank accounts, 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 the loan is a loan.
Credit card- a plastic card owned by the bank. Designed to record purchases to 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 bring credit relationships with the cardholder outside the bank.
Credit system-the set of rules established in the country for the implementation of credit relations, as well as credit institutions of the banking and non-banking type, implementing these rules in credit relations.
Creditor- the individual or legal entity that provided the loan to the borrower.
Lender of Last Resort- the central bank of the country, 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, which are created on a share basis. Most often, credit unions and credit partnerships specialize in lending services to the poor. The credit union provides mainly consumer lending 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, which 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.
IS curve- graphical interpretation of the relationship between the rate of interest and national income in equilibrium in 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 a currency rate in which the US dollar is neither the quote base nor the quote currency (quoted currency). 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) rate is a cross rate. Cross-rate (eng. Cross - crossing) is determined on the basis of the ratio of two currencies through their rate to a third currency. Most often in practice, the US dollar (or other reserve currency) is used as the "third" currency, which can be either the quote base in both currencies of the cross-rate, or the quote currency, or in one currency be the quote base, and in another currency - currency of the quote. In practice, the cross rate is the ratio of two foreign currencies, determined on the basis of their rate to any third currency. With this approach to the cross rate, the US dollar may be present in it, which does not correspond to the strict concept of the cross rate.
Circulation of income and products- the cash flow 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 the value of the enterprise's funds: monetary (advancing funds into circulation), commodity (inventories), productive (work in progress), commodity (finished goods) and again monetary (proceeds from product sales).
Kuna- the old Russian name for the counting monetary unit, derived from the name of the valuable marten fur, which was used as money.
Bid rate- interbank exchange rate. The bank that quotes the currency usually names the Bid (buy rate) and Offer (sell rate) rates. The Bid rate for a direct quote is the rate at which banks buy foreign currency for the national currency. With a direct quote, the excess of the Offer rate over the Bid rate is called spread or margin.
Offer course- the interbank exchange rate of 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.
Selling 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 - it is the negotiated interbank rate, which is the current exchange rate in effect on the date of the contract, at which the currency must be delivered no later than the second business day, excluding the day of the contract.
Forward rate- contractual interbank exchange rate for forward transactions. Forward trades 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 when carrying out a forward transaction, the conclusion of which means an agreement between the two parties to exchange one currency for another after a certain period of time at the rate set upon signing the contract. In this case, the forward transaction is firm, that is, binding. The usual forward rate (forward outright, English outright - direct, open)) is based on a premium or discount determined by the swap market. Therefore, for simple forward transactions, it is sufficient to know that the forward rate is equal to the spot rate plus or minus the forward margin, also called a premium or discount. Unlike the forward rate in a swap, a forward rate that is not associated with swap transactions is called a simple forward-outright forward rate.
L
Latin union- was a prototype European Union... In 1865, a number of countries (Belgium, Italy, France, Switzerland, and then Greece), considering bimetallism the best type 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 the Latin Monetary Union, providing:
free minting of gold and silver coins in denominations of 5 fr. and above, subject to their official cost ratio of 1: 15.5 (i.e. gold is 15.5 times more expensive than silver);
obligatory acceptance of these coins by all state treasuries 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 inferior (whose nominal value is higher than their value) small silver coins with a denomination of less than 5 francs, a limited closed minting was established, while limiting each payment in this coin to an amount of not more than 50 francs. By the beginning of the First World War, the Latin Monetary Union practically ceased to exist.
Ligature- an admixture of a cheaper metal, added to a coin made of precious metals (or in general to precious metals) to increase their hardness or reduce the cost. The alloy content 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 the enterprise (lessee or lessee) receives for long-term use on the terms of lease of the means of production from the lessor (lessor), which either has already acquired or specifically for the lessee purchases from the supplier (manufacturer) the means of production he needs. Currently, commercial banks have begun to participate in leasing operations, acting as lessors (lessors).
All types of leasing objects can be industrial equipment, means of transport, buildings, structures, intellectual property rights, etc.
Bank liquidity- the ability of the bank at the first request of the depositor (or reliable borrower) to give him cash.
Bank balance sheet liquidity- the presence of equilibrium in the bank's balance sheet between the amount and timing of the release of funds for the asset in cash and the amount and timing of forthcoming payments on the bank's liabilities.
Liquidity of monetary assets- the ability of monetary assets at any time to turn into cash without loss.
A liquid approach to monetary assets- the ease with which the owner of a monetary asset can turn it into cash (sell / buy this asset for cash) at any time at a minimum cost. The liquid approach thus emphasizes the importance of the function of money as a store of value (purchasing power).
Pawnshop- a non-bank credit institution that issues 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 plays the role of a universal equivalent. In Marxist theory, the value of money and goods is determined by the cost of labor 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 cost of labor for its production, but also by its utility ("need") for society in specific conditions. In addition, the Marxist theory proceeded from the fact that the sum of the 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 amount of the noble metal, legally assigned to one monetary unit of the country.
International liquidity- the country's ability to timely fulfill its obligations to other creditor countries with the help of international means of payment acceptable to the creditor country. In a broader sense, international liquidity is the aggregate 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 foreign exchange reserves, available to it, to the amount of its three-month merchandise imports.
International Monetary Fund- Interstate coordinator of currency relations, created in 1947 and intended for the interstate regulation of currency relations. The IMF is the institutional framework for foreign exchange regulation in the world monetary system, the recommendations of which are taken into account by almost all countries.
International credit- the form of the loan. 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 provided in the euro currency, i.e. in the currency of a third country.
Exchange value- is represented in the form of a quantitative ratio, in the form of 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 such. Accordingly, the metal theory considered only those functions of money, the fulfillment of which can 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 medium of circulation and a means of payment, which banknotes can also perform, these functions remained outside the field of vision of the theory under consideration.
Gold point mechanism- deviations of the exchange rate from the currency parity within the gold points in the conditions of free movement of gold between countries. Distinguished between the upper and lower gold 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 lowest gold point (the export point at which gold was exported from the country) was equal to the exchange rate minus the corresponding transportation costs. (Transportation costs accounted for 0.5% of the value of the metal transported 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 pound sterling. could be either 4.894 (4.87 + 0.024) dollars per pound (import upper gold point) or 4.866 (4.87 - 0.024) dollars per pound (export, lower 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.
Monetizing the economy- the provision of money to the processes of production and circulation of GDP.
Monometallism- a type of monetary system in which the role of the 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 due to which his role was limited.
H
Cash settlements- settlements carried out using cash.
Cash in circulation- cash outside banks.
Cash- at present, banknotes and bargaining chips of 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, the naturalistic theory assigned credit a passive role, putting the production of natural goods in the first place and credit in second place, although it saw a close connection between credit and production.
National product- the total cost of all final goods and services produced in the economic system for the year.
National income- the total income received by households, including the entire amount of wages, rent, interest payments and profits.
Defective money- coins (including those made of precious metals), the face value of which is higher than their value.
Non-residents- individuals and legal entities permanently residing and / or carrying out their activities on the territory of other countries (and according to their laws); Foreign citizens temporarily staying on the territory of Ukraine; international organizations, consulates of a representative office, as well as branches of various foreign companies on the territory of Ukraine that do not carry out entrepreneurial activity.
Non-trading foreign exchange transactions- operations with the currency of individuals on foreign exchange 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, foreign exchange transactions, etc.
Nogata- the monetary unit of ancient Russia equal to 1/20 of the silver hryvnia or the kun hryvnia. One nogata was more than one kuna, since individual marten skins (or certain parts of them) were sewn into one fur fabric, known in the "fur" monetary system as nogata.
Nominalistic 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 ideal counting units, with the help of which the exchange proportions between goods are determined and these monetary units have no intrinsic value. Nominalists proclaim nominal paper money, devoid of a commercial nature, conventional signs and the creation of state power.
Nominal interest rate- represents (at actual prices) the real lending rate adjusted for inflation (CPI).
Face value of money- face value (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 another type of income - for example, profit.
Compulsory reservation rate- the amount established by the central bank of the country (as a percentage of the deposited funds) of cash or highly liquid assets that commercial banks are required to keep in the central bank on their correspondent accounts.
Loan interest rate- the share of payment for the use of the loan (loan interest) in the amount of the loan issued (in percent).
Standard money multiplier- an indicator of the potential 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, which is the issuer's obligation to pay off the debt after the expiry of the period indicated on it with the payment of interest, including coupons, if any, in the bonds.
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.
Mandatory reserves of commercial banks- funds of banks that they are required to keep in their accounts with the central bank of the country in accordance with the required reserves set by the central bank.
Government bonds- Bonds of the internal government loan.
REPO transactions(from the English repurshase agreement). Repo transactions (RP) are agreements on the repurchase of securities sold by a bank (or other credit institution) to an individual or legal entity that are in the portfolio of the bank (credit institution) at a higher price. The economic meaning of repo transactions is that the bank (or other credit institution) is provided for a period not exceeding one day (or another period established by the agreement), a loan secured by securities, upon return of which the bank pays the loan interest.
Capital flow operations represented by a group of transactions consisting of direct and portfolio investments, lending operations (for a period exceeding 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 with a use value becomes a commodity when it is produced for sale. Accordingly, a product always has a value and a price without which there is no product.
Official exchange rate- the rate of the national currency set by the central bank. The official exchange rate is uniform and does not have a buyer's rate and a seller's rate.
Priority of payments from the current account- fulfillment by banks of claims to the same customer account according to documents received during the day, carried out in a certain order. In particular. at present in Ukraine, the order of payments from the current account is as follows: payments by court order to satisfy claims in connection with injuries at work, death, as well as claims for the recovery of alimony; payments by court decision to satisfy claims regarding payments of severance assistance and remuneration of labor 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.
NS
Balance passive(from Latin passivus passive, passive) - the right side of the balance sheet, reflecting the sources of funds, grouped by their belonging and purpose.
Pension funds- non-bank financial institutions. They can be public or private. State pension funds are created by law by the government of the country and municipal local governments. Private pension funds have emerged to counterbalance poor government provision. Pension funds operate on a credit basis: first, they attract funds from workers and employees, and then begin to return them by paying pensions. At the same time, pension funds are also created for financial basis due to the irrevocable provision of funds to them by their creators. In addition, in a number of cases, pension funds pay pensions for disability, for the loss of a breadwinner, for disability, etc. 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 funds equated to them.
Primary securities market- the market on which securities are sold by their issuers.
Floating interest rate- the rate, the amount of which is revised at certain intervals during the period of the loan.
Floating exchange rate- the exchange rate that changes under the influence of supply and demand in the foreign exchange market.
Scheduled payments- the method of payment, which sets the planned payment periods, one-time amounts of planned payments and the total amount of delivery for a specific period. Under such conditions, the delivery volumes and the amount of one-time planned payments for a separate planning period may not coincide. However, at the end of each month, deliveries and payments are reconciled and the corresponding recalculation is made, which is finally made for three consecutive months. This method of payment is convenient for those business entities between which there is a constant and frequent supply of goods or services.
Plastic card- is an key element in the electronic payment system through ATM cashiers, including in the trading network system. With the help of plastic cards, cashier machines are activated. They, together with the PIN-code, identify the user for the 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 the bank.
Payment discipline- consists in making payments on time. Accordingly, banks control the timeliness of submission of documents to the bank, the timeliness of debiting funds from payers' accounts and transferring them to the accounts of suppliers (or recipients of funds), compliance with the order of payments.
Payments crisis- such a state of the economy when there is a shortage of means of payment in the country. A striking example of the payment crisis in Ukraine is the payment crisis caused by the liberalization of prices in the country in early 1992 without a corresponding emission 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 currency unit at a given time.
Good money- coins made of noble metals, the nominal value of which corresponds to the value of the metal from which they are made.
Creeping inflation- typical for developed countries. It has a low rate of price growth (3-5% per year), considered as a kind of stimulator of economic development. As prices rise and the purchasing power of the population falls, workers and employees demand (and seek) higher wages. But the rise in wages automatically leads to a new rise in prices. Ultimately, prices and inflation develop in a spiral
Cheap money policy- the policy of the central bank aimed at increasing the money supply in the country by monetary regulation methods in order to increase investment growth.
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- a set of assets owned by an individual. A wealth portfolio may include cash and cash in bank accounts, securities, and other property.
Portfolio investments- capital 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 specific moment when he owns a certain property (cash, funds in bank accounts, government and private securities, capital in material form (house, dacha, car, yacht, industrial buildings and structures, etc.); and decides which assets are 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 loan- the form of credit in which the loan is issued for consumer needs.
"Almost" money- the same as quasi-money.
Prime Wright(English prima rate first rate) - the lowest (base) interest rate at which short-term loans are provided to the most creditworthy and reliable clients with an impeccable financial reputation
Prepayment- payment preceding the shipment of the goods to the buyer.
Prepayment contradicts the principles of organizing cashless settlements and the essence of money in the function of a means of payment and creates a risk for the buyer that the goods will not be shipped 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 performing non-cash payments by business entities and banks. Among the principles of organizing non-cash settlements, one should name: execution of all non-cash settlements through banks, with the consent of the account holder (except for the forced write-off of funds), following the shipment of goods or the provision of services (except for the prepayment that exists so far) and using modern technical means.
Lending principles- the rules for the issuance and repayment of loans, which include: target, differentiated, paid, urgent, secured and contractual nature of lending.
Forced withdrawal of funds- debiting by the bank of funds from the current account on the basis of decisions of the judicial authorities.
Try(Latin 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.
Protest of a bill- Notarized refusal to pay or accept a bill.
Credit percentage- the ratio of the mutually credited amount to the entire amount of funds presented for offset, multiplied by 100.
Interest rate- the same as the lending rate.
Ex ante interest rate- the real interest rate, which takes into account the inflationary expectations of the lender and the borrower at the time of signing the loan agreement.
Ex post interest rate- the real interest rate, which takes into account the actual changes in the inflation rate at the time of signing the loan agreement.
Direct financing- direct transfer of financial sources of funds (household savings) from their owners to firms, enterprises and organizations.
Direct investments- represents an investment of capital through the creation of branches or subsidiaries abroad, which give the investor the right to participate in the management and exercise control over the activities of a foreign enterprise or firm. The IMF classifies as direct investment such investments of the investor's capital, which make up at least 25% of the shares of a foreign enterprise.
R
Equilibrium interest rate- the rate of loan interest, which corresponds to such a level of national income at which a macroeconomic equilibrium is achieved in the economic system, that is, equilibrium is observed in the market for goods and the market for money.
Calculation discipline- is the execution of settlement documents in accordance with existing requirements.
Cashier's check- a check used only in non-cash payments.
Rationing- the method of distributing products per capita, for example, by ration cards, by coupons, etc.
Real interest rate- represents the level of interest rates that could be at constant prices or a stable national currency.
Real income- the amount of goods and services that can be purchased for nominal cash income.
Revaluation(lat. - the prefix meaning resumption, 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 by deflation that has arisen in the country.
Regulatory capital of a bank- equity bank, which is one of the most important indicators of banking activity, the main purpose of which is to cover losses from various risks from banking activities and to ensure protection of deposits, financial stability and stable operations of the bank. The bank's regulatory capital consists of main and additional capital. The amount of the bank's regulatory capital may not be less than 8% of total assets and certain off-balance sheet funds, weighted with regard to risk and reduced by the amount of the corresponding reserves created for active operations
Rediscounting- rediscounting or repeated discounting (from discount - reduction), repeated reduction of the par value of the bill. Rediscounting allows the central bank to rediscount the promissory notes of commercial banks when granting them loans secured by the previously discounted commodity bills.
Account register- a list of accounts with an indication of their numbers, amounts for each account separately and the total amount of bills presented, which are attached to the settlement documents submitted to the bank.
Register of checks- a list of checks (indicating their main details), reflecting the total amount of checks presented for collection.
Rezan- "fur" monetary unit equal to 1/50 hryvnia kuna.
Reserve currencies- these are, first of all, the national freely usable currencies of individual highly developed countries. However, collective currencies also belong to reserve currencies. A distinctive feature of reserve currencies is their performance of the role of 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); Ukrainian citizens temporarily staying abroad; representations, consulates of Ukraine abroad, as well as branches located abroad, but not carrying out entrepreneurial activities.
Exchange rate regime is the procedure for its establishment and use.
Remedium(lat. remedium - a remedy against something, to prevent something) - the deviation of the actual weight and sample of a coin from the established norms permissible by law. Coin wear remedium 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 domestic circulation of the country as full-value coins. Accordingly, if the weight of the coin decreased to the remedium, then such coins were exchanged for new ones of the same denomination as the worn-out coins presented for exchange. However, if the coin was worn out more than the remedium provided, then it became defective and lost its legal tender.
Under such conditions, the 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 coins within the remedium were borne by the state.
Restriction(restrictive policy) restriction of something, for example the money supply, in connection with which the volume of lending by commercial banks is limited by increasing the reserve requirement and the discount rate of the central bank.
Refinancing- the process of the government paying off its previously created obligations (in the form of issued OVDPs) at the expense of proceeds from the placement of a new issue of OVDPs on the financial market.
Market interest rate- the rate that exists in the money market at any given time.
WITH
Savings deposits- demand deposits.
SWIFT(eng. Society for Worldwide Interbank Financial Telecommunication - Society for Worldwide Interbank Financial Telecommunication) is an interbank organization that transfers information on interbank settlements and sets certain standards for telegraph communications.
Free minting of coins- minting of coins on mints from metal provided by any person.
Freely usable currency- the national currency of the issuing country, which has not introduced any currency restrictions on currency transactions with currency values either for 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 there are options: spot versus forward, or forward versus forward.
Seignerage(English seigniorage - tax on the right to minting coins) - the issuer's income received from the issue of money. 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 money ticket (of any denomination) does not exceed 2.5 cents, it follows that the issuer's share premium from the issue of a one-dollar bill is 97.5 cents, and, for example , one hundred dollar ticket - $ 99 and 97.5 cents.
Scruple- an old unit of pharmaceutical weight, equal to 20 grains, i.e. 1.24 grams.
Lumpflation(English - inflation and slump - a sharp drop, crisis) - characterized by the fact that along with hyperinflation there is a sharp drop in production and an increase in unemployment.
Modern quantitative theory of money and prices- a theory in which the velocity of money circulation is a variable quantity (and not constant, as in the classical quantitative theory), and the relationship between the money supply, real and nominal production volume and the level of commodity prices is asynchronous. Therefore, the modern quantitative theory in its first approximation is the theory of the demand for money.
Modern money(in the form of money tickets and coins made of base metals) - do not have their own labor value (they have either a conditional or imaginary value), but they have purchasing power; are not goods and value equivalents; have a credit nature, being debt obligations of the banks that issued them; represent only a sign of the price (in contrast to banknotes, which are a full-fledged representative of gold, value and price).
Special drawing rights- The SDR or SDR (SDR English Special Drawing Rights) is a collective currency within the IMF. Since January 1, 1999, the SDR basket includes four national currencies: the US dollar, the British pound sterling, the Japanese yen, and the euro (replacing the German mark and the French franc). SDRs have been issued by the IMF since 1.01.1970 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 assignment of
SDR status of the main reserve currency. Accordingly, the SDR is the quotation base not only for any other currencies, but also for other reserve currencies. As the main reserve asset, SDRs are used only at the level of central banks and international organizations and cannot be held by banks or corporations, firms or enterprises. Payment method- executed as a payment immediately; deferred payment; combined payment (up to 30% immediately, and the rest with a deferred payment); planned payments, when the amount of payments for specific periods is stipulated by the contract, regardless of the amount of delivery 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 unsettled balance passes through the bank.
Spread(English spread the difference between the cost and the selling price) is a term widely used in currency 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.
Time 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 consumer goods in a civil loan) provided to the borrower for a while.
Loan capital- is a money capital lent to entrepreneurs to service the circulation of their funds in order to receive income by the lender in the amount of the average rate of return. The country's loan capital is concentrated in banks.
Loan account- an account opened by the bank to keep track of issued loans and their return.
Stagflation- combination of hyperinflation with deep economic crisis, in which the growth of the volume of production has stopped or stops.
Value for 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, in the world, the cost of manufacturing one banknote of any denomination does not exceed 2.5 cents. Subordinated debt- debt arising on the basis of the bank's issuance of simple unsecured obligations that cannot be claimed from the bank earlier than five years
T
Inflation targeting- a mechanism for managing inflation, providing for a systematic assessment of the level of inflation that it can reach in future (within the forecast period) and regulation of the existing inflation rate to the level set 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 disadvantageous to the lender in medium-term and, especially, in 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 treasures (ie, 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, collecting and accumulating (in a hoard) coins intended for collecting, over time, changes their market value, which in some cases is tens and hundreds of times higher than both their nominal value and, moreover, their real value. In this sense, we can say that collectible coins are tezaviried. At present, tezavratsy is understood as the accumulation of money tickets outside the banking system - "in the boxes".
Current foreign exchange transactions- reflected in the current balance of payments of the country, characteristic feature which (in contrast to the reporting balance of payments) is the presence of a balance, which, moreover, is subject to daily changes that have an impact on changes in the country's exchange rate. The negative balance (deficit) of the current balance of payments is offset by other items of the reporting balance of payments. Current foreign exchange transactions are represented by trading, non-trading, credit transactions for up to 180 days and transactions on income received from transactions related to capital flows.
Current account- an account of an economic entity with a bank, which records all of its current receipts and payments. In this case, 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 servicing of bank clients using telephone communication channels. "Telebanking" is used to carry out a number of transactions on a client's account related to payment for public services.
Shadow economy- activities of business entities outside the legal field of the country.
Monetary system type- such a structure of monetary circulation and circulation in the country, which is determined by the nature and essence of the money circulating in it and is legally enshrined by the state.
Types of monetary systems- differ in the type of material from which the money is made (metal and paper), the amount of metals that play the role of a universal equivalent (bimetallism and monometallism), the type of issue of banknotes and banknotes (credit and fiduciary), the nature of the economic system (market and non-market and, accordingly , open and closed), etc.
Trading currency transactions- export-import operations, involving the presence of current accounts in foreign currency (with authorized banks of Ukraine) and associated with the implementation of international settlements, with the purchase and sale of currency in the interbank foreign exchange market of Ukraine (MVRU), with deposit and loan operations, for a period of up to 180 days.
Transactional(English transaction - transaction) check deposit - a deposit created for payments for goods and services, which can be managed only with the help of checks.
Transfer payments(English transfer payments - transfer of rights) is a form of redistribution of part of the state budget revenues in the form of payments to citizens of the country (and private entrepreneurs) from the state budget. Transfer payments do not represent any compensation for labor services provided to the government.
Draft- a bill of exchange unaccepted.
Drawer- the person who issued the bill of exchange (draft).
Drawee- a person obliged to pay a bill of exchange (draft).
Trust operations- see trust operations.
Trust company(English trust trust) - trust companies that accept in trust the property of the principals in material and monetary form. In accordance with world practice, trust companies are obliged to transfer 90% of the income received to the principal, and 10% can be retained for business development.
Have
Narrow money supply- money supply by aggregates M0 and M.
Unga- an old Russian measure equal to 24 scruples (see scruples).
Exchange equation- 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 dependence of exchange: how many goods are sold - so much is bought.
Discount rate- the rate of rediscounting and refinancing set by the country's central bank for loans.
F
Fiduciary issue(from Lat. - a transaction or agreement based on trust) - the issue of banknotes that have no connection with gold, and based on public confidence in the issuer (the government and its central bank).
Fixing- the procedure for establishing. such a level of the exchange rate, in which by the end of the trading day of the exchange, all declared transactions for the purchase and sale of this currency are taken into account, taking into account the maximum convergence of the conditions of clients' orders with the concluded conditions of transactions.
Fictitious capital- securities - stocks, bonds, etc.
The value of the fictitious capital depends on the market value of the securities. Unlike real capital, the amount of profit from which depends entirely (all other things being equal) on the size of capital, fictitious capital is characterized by an inverse relationship - the amount of fictitious capital depends on the amount of income on this capital.
Financial intermediaries of the money market- banks, stock exchanges, non-bank credit institutions. However, since these organizations do not mediate in the distribution of financial resources, then in essence they, functioning in the money market, are mediators of the money (financial) market.
Fiscal issue- the same as fiduciary issue.
Financial companies- companies operating on the basis of raising funds, mainly on a non-repayable basis and providing them as 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" is a collective name for such money markets as the foreign exchange, stock market and loan capital market. The peculiarity of the money (financial) market is that it is characterized, first of all, by the frequency of operations, and not by the specific geographical place of its existence. Secondly, since modern money is a non-commodity, does not have a price (without which there is no good) and is not produced for sale, money is not sold or bought on the market (in the traditional sense of the acts of sale and purchase), but is exchanged for cash assets at the opportunity cost of these assets, expressed in the nominal rate of lending interest.
Stock market- the market in which the object of purchase and sale is stock securities - stocks and bonds.
Stock securities- titles of ownership in the form of shares, government and corporate bonds, with the help of which their issuer creates or increases the share capital (statutory fund). Stock securities, in contrast to 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 issue of commercial securities.
Non-cash payment form- method of document flow and payment. There are such forms of non-cash settlements: 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- an external manifestation of their essence. Real (gold) money had two forms - the form of gold ingots 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 his essence, the way of his existence, internal organization. Distinguish between banking, commercial, consumer, mortgage, state, international and civil forms of credit.
Fischer's formula- exchange equation (MU = RU).
Function- the simplest manifestation of one of the sides of the essence of the subject.
Functions of real money- a measure of value, means of circulation ,. treasure education medium, means of payment and world money.
Functions of commercial banks- creation and destruction of new credit money and other credit instruments of circulation; mobilizing cash receipts, incomes and savings and converting them 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.
Loan functions- redistribution 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 function of an intermediary in the sale of loan capital, the function of mobilizing income and savings and converting them into loan capital and the function of a provider of specialized non-banking services.
Functions of modern money- a means of circulation, a measure of value, a means of payment and a means of preserving and accumulating value.
Loan Interest Functions- distributive and stimulating, preservation of the cost of loan capital and investment.
Central bank functions- the function of the emission center of the country; the body of monetary regulation of the economy; the banker of the government; "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.
NS
Charter money- from the word "harta" - a sign, i.e. money without value, made of paper, legislatively introduced into circulation and generally recognized by society. They have compulsory purchasing power in the form of the face value of banknotes and coins of base metals. The real purchasing power of the money put into circulation is determined by the market.
Lame Currency- a monometallic type of monetary system in which the role of the universal equivalent was played by one metal - gold or silver. However, along with it, another, less valuable metal, for example, silver or copper, could be used. Under such conditions, the monetary system was on two metal legs: the gold (long leg), which plays the role of a universal equivalent and is used both domestically and in the world market, and the silver (short leg), which does not play the role of a universal equivalent and is used only within the country as exchange metal.
C
Price- This is the amount of money that is paid for a product or service at a particular point in time.
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 paper (checks, bills, drafts, etc.)
H
Partially-used currencies- currencies, issuing countries that have introduced currency restrictions on currency transactions with currency values only for residents.
Partial bank reserves- reserves, in the form of highly liquid assets of a commercial bank, providing only part of the coverage of its deposits.
Receipt- the unconditional order of the drawer 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- the person who legally owns the check received from the drawer or endorser in payment for goods or services.
Checker- the person who handed over a correctly executed check to the seller of goods or services.
Black file cabinet- collection card index No. 2, in which payment claims overdue in payment were placed if there was an acceptance form of settlements.
Net taxes- taxes paid to the budget minus transfer payments.
NS
Broad money supply- characterized by any of the monetary aggregates outside M.
NS
Evolution of money- the process of historical development of nature, essence and forms of money.
Expansion(expansionary policy) - the expansion of something, for example, the volume of the money supply, in connection with which a policy of cheap money is introduced (interest rates and the reserve requirement 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 (EMU). ECU existed for almost 20 years (from 1979 to 1999) and ceased to exist with the introduction of the non-cash EUR. By the nature of its use and the technique of emission, the ECU was similar to the SDR. However, the ECU issue, unlike the SDR, was half backed by gold and US dollars. The ECU issue, 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, it was considered as a m.f.
Electronic money- money existing in the form of entries on "card" accounts in banks and therefore representing a type of non-cash form of money and used with the help of plastic cards in payments for goods and services.
Monetary system element- a separate, legislatively introduced by the state, characteristic and stable feature for a given monetary system of the country.
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 the amount that is in circulation.
Issue of non-cash money- Creation of new credit money by commercial banks when lending to their clients with crediting of loans to their current accounts.
Offset efficiency- the same as the offset percentage.
Fisher effect- the relationship between the inflation rate and the nominal lending rate.
It might be useful to read:
- Craft from plasticine for the day of cosmonautics;
- School riddles - fun activity for kids;
- How to mold a plasticine bat step by step with a photo;
- Embroidered keyrings Embroidered keychain scheme;
- Station game "fair";
- Games in the summer day camp for primary school children;
- Camp competitions for children;
- Children's riddles about transport;