market terms. Brief dictionary of economic terms. General partnership and limited partnership

In the everyday life of a modern person who wants to be financially literate, one has to know and use economic terms. What is it for? For example, you come to a bank where you conclude a loan agreement - knowing the basic concepts will help you avoid deception and misunderstanding, will allow you to find out in advance all the moments of upcoming cooperation and save your budget. Economic terms and concepts and their definitions are given not like in textbooks, but in a form accessible to every person.

Financial terms and definitions that are useful in everyday life

If you work, shop, save money, rent, these terms will be useful:

Advance payment - part of the salary, which 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;
An excise is a tax paid indirectly. For example, with tobacco, alcohol products, fuel prices. Most of the cost comes from excise taxes;
- tax, which is paid from the income of an individual. The rate is 13%, subject to salary, benefits from the sale of property and any funds received by a citizen;
- 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 - weight without packing material;
Inflation is a depreciation of the currency, in Russia in 2017 the ruble fell by almost 3%, but the real rate is many times higher.

Financial terms and definitions, of course, do not need to be taught verbatim, you just need to understand their essence.

Terms and definitions for a novice businessman

If you decide to start your own company or are just looking at the business area, these terms will be useful:

- a security that allows you to receive a part of the income of the enterprise, to take part in management;
Depreciation is the recalculation of the value of depreciable property. For example, you use a machine, the service life is 10 years. During this time, it is necessary to deduct its cost in equal payments to the depreciation 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 ruin of a company, the procedure for recognizing a company that is unable to pay its bills is carried out through the court;
Accounts receivable - the debt of counterparties to you. Imagine you supply meat products to stores on a deferred payment basis - payment occurs within a week from the date of shipment. All this time, accounts receivable 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, everything interested persons can invest and make a profit in the future;
Bidding is a form of procurement in which a competition is announced, according to the results the best company is selected. For example, the state arranges tenders 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 each person 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;
BKI is a bureau where credit histories are stored. Here you can go and get your own history of loans;
Differentiated payment - interest is charged only on the balance of the debt, the amount will decrease monthly. 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 loans taken, the history of payments on them from a particular borrower. Based on the IC, 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;
– Renting property, such as a car. At the end of the term of the contract, the object can be redeemed at the 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 country's finances

It would seem, why do we need to know about the processes that are taking place in the country? In fact, they also apply to us - ordinary citizens, so the terms will not be superfluous:

Government revenues - money coming into the budget. Sources are taxes, loans, issuance of currency and valuable papers;
– depreciation of the currency against gold;
- non-fulfillment by the country of its obligations, for example, non-payment of debt, refusal to pay bonds;
Subsidies are 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 gives money for this purpose;
The discount rate is 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 economic terms, their definitions - an opportunity to improve financial literacy, to better understand many processes. However, their number is so impressive that it is not possible to consider all concepts within the framework of one article. For the purpose of self-education, it is recommended to find out the meaning of the terms that you meet in everyday life.

Objects of study of economics:

ways of rational management;
ways to improve well-being;
distribution of goods in order to meet needs;
methods of economical use of resources;
factors affecting the state of the economy.

Economic laws and models

Economic laws are stable causal relationships that arise between economic phenomena. For example, the law of the relationship between total expenditure and the existing level of employment. Laws are the basis of economic theory.

Based on the theory, economic models are built. They can be divided into two categories:

macroeconomic models;
microeconomic models.

Goals of the economy

The economic growth. It leads to an increase in the quality of life of the population, the development of the country and the strengthening of its position on the world stage.
Raise economic efficiency, which is expressed in the ratio of the results of economic activity and the costs of means of production.
Ensuring price stability that allows the government to ignore inflation when making economic decisions.
Increasing the level of employment of the population. The fight against unemployment leads to an increase in GDP and an increase in the well-being of the population.

BUT

Absolute level of commodity prices- weighted average level of current prices in the country

Aval- bill of exchange guarantee

Letter of credit- an order from one bank to another to pay a third party against documents

letter of credit statement- a written application of the letter of credit to the issuing bank to open a letter of credit in the name of the beneficiary in the amount and for the period specified in the sales contract

Balance asset- the left side of the balance sheet, reflecting the allocation of available resources.

Acceptance- consent to pay for documents, which can be made in writing on the accepted document or silently, i.e. within the period established for acceptance, the acceptor does not submit a written statement of refusal to accept.

Acceptance-aval operations of commercial banks- Operations of banks on making acceptance or aval on promissory notes. Acceptance-availability operations refer not only to passive, but also to active operations of the bank, since the same amount of funds is simultaneously reflected in the assets of the bank as the sum of its claims to customers whose bills it has accepted. At the same time, if the bills are accepted by the bank, then its clients, on whose instructions the bank has fulfilled the acceptance of the bills, must pay the amount due on it to the bank before the expiration of the payment period on the bill, so that the bank makes payment on the bill. If the bank avalized the bill, then the persons liable under the bill (the bank's clients) are obliged to pay the bill to the bill holder, bypassing the bank, since by avalizing the bill, the bank vouched to the bill holder for the timely payment of the bill, the person liable under the bill.

Stock- securities with the help of which the joint-stock company creates an authorized fund (share capital). It is precisely because with the help of shares that statutory fund enterprises, shares are stock securities.

joint stock bank- a bank, the authorized capital of which is formed at the expense of funds from the issue of shares.

Joint-stock company- a corporation that has created an authorized capital based on the issue and placement of shares.

underwriting(underwriting) - guaranteed placement of securities of issuers by a commercial bank (underwriter) among its clients with subsequent resale of these securities to other buyers for profit.

Anticipation- anticipation (guess) of something expected, the premature occurrence of an event or the use of the right before its approval.

Banknotes- a type of paper money, first introduced under Catherine II (1769). It is appropriate to note that Peter I did not introduce paper money in Russia. Under Elisaveta Petrovna, the Senate found that "... it would be reprehensible that instead of money papers would go, and it would be dangerous not to give reasons for bad reasoning in the future." Nevertheless, the banknotes put into circulation lasted almost 100 years, until 1851.

Basel Accord on International Capital Standards - adopted in 1987 - 1988. regulatory authorities of the USA, Canada, Japan and leading industrialized countries of Europe, such as Belgium, Great Britain, Germany, Italy, Luxembourg, the Netherlands, France, Switzerland, Sweden, which established capital adequacy standards taking into account risks for commercial banks of the countries, signatories to this agreement. Quote base- represents the currency with which any other currency is compared when it is quoted. For example, when determining the exchange rate of the Ukrainian hryvnia against the US dollar, the latter is the quote base. Accordingly, with a direct quotation used in Ukraine, the record of the hryvnia exchange rate against the US dollar has the form USD/UAH, where the US dollar is the quotation base.

Core inflation- inflation, which does not take into account consumer goods whose prices fluctuate sharply depending on the season (milk, eggs, fruits and vegetables of the summer assortment; energy products, the prices of which can deviate sharply from real prices under the influence of political events; indirect taxes; interest payments on loans granted for the purchase of housing or housing Construction, the value of which may deviate in one direction or another under the influence of household expectations Other components of the consumer basket, the prices of which fluctuate significantly depending on external and internal price shocks Correspondingly, core inflation is understood as CPI adjusted for the prices of those goods in the consumer basket, which are characterized by serious fluctuations, primarily of a seasonal and other nature.

Base interest rate- The prima rate, which is the lowest rate at which short-term loans are provided to the most creditworthy and reliable clients with an impeccable financial reputation. The base interest rate is calculated for the planned period, based on the calculated profitability and cost of loans provided by the bank to first-class borrowers under reliable security.

Balance- an accounting report on the financial condition of an enterprise, organization, institution, including a bank.

banknote- a full representative of real money (gold), value and price. Therefore, the banknote was considered by K. Marx as a sign of real money. After the demonetization of gold, banknotes, along with real (gold) money, became a thing of the past and ceased to exist.

Banking system- a set of banks of the country, interconnected by correspondent relations.

Banker's acceptances- the bank's obligations to pay their holders certain amounts of money specified in the accepted document at a specified point in time and within a specified period.

Bank loan- economic relations between the lender and the borrower regarding the return movement of the loaned value issued by banks to individuals and legal entities

Barter- non-monetary commodity exchange.

Cashless payments- calculations based on credit movement

billon coin(French billon - low-grade alloy) - a bargaining chip.

Bimetallism- a monetary system in which two metals - gold and silver (or other two metals) play the role of a universal equivalent.

Currency- the national currency of a country or the collective currency of a region or a union of countries.

Quote currency- the currency whose exchange rate is to be determined.

For example, with a direct quotation that exists in the vast majority of countries, in the exchange rate of the Ukrainian hryvnia against the US dollar (USD / UAH), the hryvnia is the quote currency, and the quote base is the US dollar.

Currency operation- the action of the subject of currency relations with currency values, performed by him in international and domestic payments.

Currency regulation- this is the procedure (or regime) established by the authorized bodies for the performance of currency transactions with currency values by the subjects of currency relations.

Currency restrictions- restrictions or prohibition on certain operations with currency values for residents and/or non-residents

currency values- values according to which the law establishes the procedure for the transfer of ownership rights to them both within the country and when they cross the state border.

Currency values include: currency and payment documents expressed in it (checks, bills of exchange, drafts, letters of credit, etc. mottos); stock securities (stocks, bonds and coupons for them); bank metals of the highest standards in accordance with international standards (in bars, coins and powders); securities of the loan capital market (deposit certificates, savings books, etc.).

Currency corridor- the limits of the exchange rate established by the legislation of the country (or by agreement between countries) within which the exchange rate of this country can deviate (float) in relation to the exchange rate of the reserve currency. The Central Bank of the country conducts foreign exchange interventions in the domestic market of the country in order to prevent the exchange rate of the national currency from going beyond the currency corridor. The regime of the currency corridor is known to the world community under the name of the European currency snake (ECU). The European currency snake is a regime of jointly fluctuating exchange rates of six EEC member countries (Germany, France, Italy and the Benelux countries), introduced by them in 1972. within plus or minus 2.25% of the established official currency parities of their currencies.

Exchange rate- the ratio of the purchasing power of two currencies

Currency (gold) parity- the ratio of the weight content of the precious metal in the compared currencies, legally fixed by the respective states for their monetary units, regardless of whether coins are minted from precious metals in their countries or not.

Veveritsa(veksha) - the smallest monetary unit in Ancient Russia.

bill of exchange- an unconditional, unspecified obligation to pay, upon the due date specified in the bill, the amount indicated in it to the specified person.

Money Market Mutual Funds- trust (trust) organizations established as joint-stock companies (open and closed) and receiving funds from the public for trust management on the basis of the sale of securities to them. Trust organizations use the proceeds to purchase short-term fixed income securities or place them in a bank on a term deposit account.

Mutual Funds- are investment dealers in the securities market and in the form of organization they are open joint-stock companies. A feature of these investment dealers is that they invest the funds raised by issuing their shares in the securities of other issuers, mainly in the shares of large corporations, and recently in state and municipal bonds. At the same time, some investment dealers, accumulating attracted funds, invest them in shares, others - in bonds, not to mention the industry specialization of investment companies and funds. It is appropriate to note that attracting funds by investment funds has nothing to do with deposits, and since they do not issue loans, they do not have a required reserve ratio. Investment-grade mutual funds differ from money-market mutual funds primarily in that the latter sell their shares at a fixed price, as opposed to investment-style mutual funds, which sell their shares at a market price that depends on changes in the interest rate.

Demand deposits- current deposits, which must be issued by the bank at the first request of the depositor.

External limits of inflation- are established by law in the form of the size of the issue of cash provided for by law or the planned rate of price growth.

Domestic inflation limits- are determined by the unprofitability for the issuer to increase the cash or non-cash issue of money.

Universal equivalent- a term introduced by K. Marx in relation to real (gold) money. The essence of the concept of "universal equivalent" is that gold money in all markets of the world, by its own value, can measure the value of all other commodities and express commodity prices.

Secondary liquidity reserves- liquid assets that generate income, which are created by the bank in excess of the amount of required reserves. Secondary liquidity reserves include highly liquid assets that can be turned into cash at any time with minimal losses for the bank. Secondary liquidity reserves primarily include government securities held in the bank's portfolio.

Secondary securities market- such a securities market in which securities are offered for sale not by the issuers of these securities, but by financial market intermediaries (dealers, brokers).

Galloping inflation- characterized by a rapid and spasmodic rise in prices and a sharp decline in the purchasing power of the population.

Hyperinflation- is characterized by an ultra-fast rate of price growth and the practical loss of its purchasing power by money. Accordingly, the first to lose their purchasing power are low-denomination banknotes and small change. In the future, the same fate overtakes banknotes of larger denominations. Under such conditions, commodity producers include the future depreciation of money in the prices of their products, and the rate of price growth reaches astronomical heights.

government loan- a unilateral agreement on the provision of loans to the state by individuals and legal entities in the form of their purchase of government debt obligations (bonds of an internal state loan - government bonds with a designated maturity and yield level).

State loan- economic relations regarding the return movement of the loaned value, in which the state always acts as a borrower, and the population and legal entities act as creditors. State loan instruments are government bonds.

Gran- previously used unit of pharmaceutical weight; old Russian measure. 1 grain = 1/20 scruple = 0.062 g.

Credit use limits- the limits of lending both at the macro and micro levels. These limits are set in the form of specific indicators (for example, the maximum amount of loans that one bank can issue to its borrowers), in relation to the subjects of credit relations, forms of credit and types of loans, both in the country's credit system as a whole and at the level of individual banks and their clients. The boundaries of the use of credit have qualitative and quantitative characteristics. However, one cannot identify the limits of the use of credit at the macro level with the macroeconomic limits of credit, which simply cannot be set. The same applies to the limits of the use of credit at the micro level.

Credit limits- the limits of the existence of credit - can be external (intercategorical) and internal (temporal and spatial).

Interest limits- Limits of collection of loan interest.

There are upper and lower limits on the interest rate. The upper limit is determined by the average rate of profit, and the lower limit can be arbitrarily small, but when it drops very much, then market mechanisms come into play and raise the lower limit of the loan interest. Kyiv hryvnia- a silver hexagonal hryvnia weighing 38 spools or about 160 grams, has been in circulation in the Kiev principality since the 10th century.

Hryvnia kuna- is mentioned in the annals of ancient Russia and, like the hryvnia of silver (equal in value), was used in circulation. Accordingly, the silver hryvnia was a weighted monetary unit, and the kun hryvnia was a counting unit. Hryvnia (silver hryvnia or hryvnia kuna) = 20 nogat = 25 or 501 kuna = 50 rezan = 100 (150) veverits.

Moscow hryvnia- chopped hryvnia or hryvnia, a bar of silver of the same length as the Novgorod hryvnia, however, its weight was half that of Novgorod - 48 spools. From the Moscow hryvnia, 200 silver coins were minted - "Muscovites" weighing 1.02 g.

hryvnia novgorod- a silver bar weighing one pound (96 spools) and 20 cm long. 200 silver coins were minted from the Novgorod hryvnia - "Novgorodka" weighing 2.04 grams.

Hryvnia UNR(Ukrainian People's Republic 1918-1919) - was put into circulation from October 1918 in the form of banknotes of 6 denominations from 2 to 2000 hryvnia and lasted 4 months (until February 1919). The hryvnia contained 100 kopecks. Since February 1919 National Bank and the treasury of the UNR are evacuated and information about the fate of their property, including the hryvnia, is lost.

Hryvnia of independent Ukraine- paper money put into circulation on September 2, 1996 as the national currency of the country. Contains 100 cents.

penny- (lat. - large, thick) coin that existed in a number of countries. The minting of silver pennies was started in Italy in the 12th century, and then pennies began to be minted in other European countries (Germany, France, the Czech Republic, Austria-Hungary, Poland, etc.). However, the content of silver in the coins of different countries was not the same and was continuously decreasing due to the deterioration of the coins. By the end of the XVIII century. Poland, Austria, Prussia and other countries began to mint copper pennies. On the lands of most of modern Right-Bank Ukraine (which was part of the Commonwealth for almost 100 years), the most common monetary unit among the population was a copper penny. As a result, the name "grosh" acquires in Pravoberezhnaya, and then throughout Ukraine, a common noun for all types and forms of money.

Goodwill(goodwill) - the good name of the company, its image, indicating the reliability and financial stability of the company.

Debit- the name of the left side of the accounts. The debit of active accounts records transactions that increase the balance of funds on the account, and the debit of passive accounts records transactions that cause a decrease in account balances. For example, for all passive accounts in banks, including current accounts of enterprises, the payments of the account holder are reflected in debit.

Debit card- represents a potential electronic alternative to cash, checks and credit cards in retail outlets. Unlike credit cards, debit cards allow you to deposit money into a card account using them.

Devaluation- (from Latin valeo - value and prefixes de-, meaning decrease) - this is a decrease in the exchange rate of national money against a foreign (national or collective) currency, caused by inflation within the country or a deficit in its balance of payments. The reason for the devaluation of the national currency may be the uneven development of inflation in the countries of the compared currencies, as well as the artificial undervaluation of the exchange rate of national money in relation to other currencies.

Motto- (fr. devises) means of payment in foreign currency intended for international settlements.

Value date- the date agreed by the parties for the delivery of currency to the account of the counterparty under the transaction.

Motto policy- artificial increase or decrease in the exchange rate of the national currency, for example, with the help of foreign exchange intervention, i.e., the sale or purchase of foreign currency by the central bank in the domestic market of its country. At the same time, if central bank sells large amounts of foreign currency in the domestic market of the country, the rate of the national currency of the country rises. If the central bank begins to buy up foreign currency in the domestic market of the country, then the exchange rate of the national currency decreases. It should be noted that the motto policy is ineffective in cases where the country's balance of payments is passive for a long time or when prices are constantly rising in the country, indicating a corresponding increase in inflation.

Valid Money- a term introduced by K. Marx for gold money in the form of coins and ingots, in contrast to banknotes made from paper, but which are full representatives of real money.

Demonetization- gradual loss monetary metal all functions of money. The demonetization of silver occurred gradually. Accordingly, by the end of the XIX century. in most countries, silver has been demonetized. Unlike the demonetization of silver, the demonetization of gold was finally carried out within the framework of the IMF. On April 1, 1978, in accordance with the Amendments to the IMF Charter, the official price of gold and all the functions of money were legally abolished.

Denarius- (from lat. denarius, consisting of 10) an ancient Roman silver coin weighing 3.41 g of pure silver.

monetary base is an indicator of the money supply in circulation. Consists of central bank cash on hand, cash in circulation outside the bank, and commercial bank deposits (required reserves) at the central bank. The monetary base - the basis of the money supply - is formed by the central bank of the country. The monetary base is, first of all, the number of banknotes and coins made of non-precious metals, which reflects the nominal value of the money supply issued into circulation. However, the monetary base does not include the cash reserve in central bank vaults. Along with cash, the monetary base also includes the mandatory reserve fund, created in the central bank at the expense of commercial banks.

money supply the money supply in the country. Consists of cash outside banks and deposits of commercial banks.

Currency unit- under the gold standard, the monetary unit was understood as the weight of the metal, legally established in the monetary unit and by which the amount of gold mentally represented in the product was measured and commodity prices were set. After the demonetization of gold, the monetary unit is understood as the name of the national monetary unit and its samples.

Monetary reform- full or partial change in the elements of the country's monetary system.

monetary system- legally established device of monetary circulation and money circulation.

money offer- the same as the money supply created by the central and commercial banks ..

monetary aggregate- a group or several specific groups of liquid assets and instruments of the money and credit markets that serve as alternative measures of the money supply.

Monetary assets of individuals- cash outside banks, funds in bank accounts and all kinds of quasi-money.

cash tickets- debt obligations of the central bank in circulation.

Monetary aggregate MO--nominal value of cash in circulation (outside banks).

Monetary aggregate M- the nominal value of cash outside banks and transaction deposits not owned by commercial banks. Narrow money supply.

Monetary aggregate M nib- applies in the UK and includes cash in circulation and non-revenue deposits.

Monetary aggregate M-- the nominal value of the sum of the monetary aggregate M and Mn ("almost" money). Broad money supply.

Monetary aggregate M--nominal value of the sum of the monetary aggregate M and SDR (money market funds). Broad money supply.

Monetary aggregate L (M)--nominal value of the sum of the monetary aggregate M and TFR (credit market funds).

Monetary aggregate M- used in the UK (see Table 3.6).

money multiplier- a multiplier showing how much new credit money can be created in the system by each currency unit of the initial excess reserves.

Cash turnover of the enterprise- release of cash proceeds from the sale of products from the circulation of the capital of the enterprise with subsequent advance payment Money in the circulation of capital.

Country's money turnover- a continuous process of money movement in their interconnection and interdependence (cash and non-cash forms) between the subjects of economic relations.

Money turnover- the movement of cash in the exchange of goods when performing acts of sale in cash.

Monetary regulation- maintaining the stability of the national currency and the country's economy with the help of monetary regulation instruments (operations on the open market, the discount rate of the central bank, the reserve requirement, the market interest rate, the introduction of restrictions or prohibitions on various types of banking activities).

Money scale- the maintenance of the quantity of change coins established by the law in one national monetary unit. Since the decimal system of measurement is currently adopted throughout the world, national monetary units consist of 100 cents, pence, pennies, kopecks, etc.

Money market- a set of banks, non-bank credit institutions, stock and currency exchanges, accumulating cash flows coming from firms and households, with their subsequent provision on a commercial basis at the disposal of other firms and households.

Money outside banks- cash in circulation.

Money is not a commodity- money tickets that do not have their own value and therefore do not have the main property of the commodity - the unity of use value and value. In addition, modern money is not a commodity, and because money is not produced for sale and has no price (and there is no commodity without a price).

Money market deposit accounts- special deposits in depository institutions, similar to money market mutual funds.

Deposit certificate(Eng. Certificate of Deposit) - a security that is evidence of a large deposit made by a legal entity to a bank for a period of at least one year, after which the bank undertakes to redeem the certificate with interest.

Demand deposits- deposits that can be withdrawn by the depositor without prior notice to the bank (at the first request of the depositor) or transferred to other accounts in this or other banks.

Income-generating deposits- deposits on which the bank pays interest to the depositor.

State budget deficit- excess of state budget expenditures over revenues.

GDP deflator(English deflator) - an indicator of changes in the general price level in the country for the entire mass of goods and services produced in it. The deflator is used to estimate the extent of inflation in a country.

Deflation- a decrease in the general level of prices in the country in any period.

Diversification(lat. diversus - different and facere - to do) - the distribution of investments (national money, foreign currency and loans) between various investment objects and subjects of relations in order to reduce the risk of possible losses of capital or income from it.

Discount(eng. discount - discount, discount percentage, accounting rate) - the discount rate charged by banks when discounting bills; the difference between the nominal value of a security and its exchange rate in the case when the latter is lower; in urgent foreign exchange transactions - a discount from the exchange rate for cash transactions.

Discount policy- the impact of the central bank on the level of the discount rate. At the same time, with an increase in the discount rate, the inflow of foreign currency into the country increases, which indirectly contributes to an increase in the exchange rate. At the same time, the influence of the discount policy is limited, since the international movement of the currency is determined not only by the rate of interest.

Remote banking customer service- involves the provision of banking services to customers on the basis of remote instructions received from the customer regarding the performance by the bank of specific operations: payment and / or informative, which are transmitted by customers to banks through access channels agreed with them, without visiting the bank by the customer. Remote servicing is carried out using the "client-bank", "client-Internet-bank" systems and the "telebanking" system. The legal basis for remote servicing by the bank of its customers is an agreement between the bank and the client on settlement and cash services, which, in addition to instructions on the rights and obligations of the parties, also contains a list of remote services provided by the bank, at the expense of the client.

trust operations(English trust - trust) is otherwise called trust. The essence of trust transactions is that trusted property passes to trustees who must manage it solely in the interests of the trustee, which is the highest priority for trusts. The trust operations carried out by banks include: temporary management of property of persons who, for various reasons, cannot independently manage it (for example, elderly people, minors, widows, etc.); introduction to inheritance rights; acceptance of jewelry; liquidation of property of bankrupt enterprises; registration of newly issued securities; securities management, etc.

Contractual discipline- lies in the fact that all economic entities must comply with the terms of the contracts they have signed. And since the end result of economic activity under a specific contract is payment, commercial banks have the opportunity, on the basis of documents, to control both the contractual basis of the delivery of goods and the payment made in accordance with the contract (purchase and sale, contractual write-off, etc.).

Contractual write-offs- involves the acquisition by the supplier of the opportunity to exercise his right to actually receive payment, after the due date payment (i.e., on an overdue payment), by issuing a payment request, paid without acceptance by debiting funds by the bank on the basis of an agreement concluded between the bank and the payer.

Long term loans- loans granted for a period of more than 3-5 years.

households(English household - household) - independent economic units. Persons belonging to households share their earned income. Households can also consist of one person.

Traveler's checks(English check) - payment documents used mainly as a means of international non-commercial settlements. Traveler's checks are issued in various denominations in national and foreign currencies. Since traveler's checks are not legal tender on the territory of another country, their purchase and acceptance in other countries is ensured by an agreement between the issuer and the bank (banks) of another country.

Euro- (EUR from the first letters of the English european - European or euro) the collective currency of the countries of the European Union (EU). Eurocurrency- the national currency of a country that has left its jurisdiction, is on bank accounts in other countries and is provided as loans to third countries. Single money turnover of the country- the same as the money circulation of the country.

Loans in Eurodollars- liquid assets, similar to repurchase agreements (REPO), used for operations with dollar funds that have left the jurisdiction of the United States and are on accounts in commercial banks in other countries and provided as loans to third countries.

Borrower- natural or legal person who received the loan.

Gresham-Copernicus law- says that "worse money drives better money out of circulation" or, in other words, less valuable money always pushes more valuable money out of circulation.

Law of currency- discovered by K. Marx says that the amount of real money necessary for circulation is directly proportional to the sum of prices of circulating goods and inversely proportional to the speed of turnover of the same monetary units.

Law Kn- the same as the law of monetary circulation, discovered by K. Marx.

Law of the value of money- derived from the law of monetary circulation, discovered by K. Marx, says that how many times the actual number of money signs (banknotes) will be more than the amount of real money needed for circulation, so many times the value of each monetary unit of the money sign will be less than the value of the real money unit ( gold) money.

Closed coinage- the minting of coins by the state from metal belonging to it.

Pledge- a means of securing the fulfillment of the borrower's obligation with property pledged on a loan. If the loan is not repaid within the period stipulated by the loan agreement, the bank has the right to sell the collateral and, using the proceeds from its sale, repay the obligation and accrued interest, and return the rest to the borrower.

closed currency- a currency whose issuing country has introduced currency restrictions for both residents and non-residents. Such a currency is not used in the major foreign exchange markets of the world.

Offset of mutual claims- a form of non-cash settlements in which mutual claims for matching amounts can be mutually offset and, accordingly, repaid, and the difference arising on the basis of offsetting the amounts of mutual claims is paid to that participant in the offset, which, in the end, turned out to be a creditor in relation to other participants in the settlements .

Zlatnik- the first Russian gold coin circulating in the Kiev principality in the 10th century. The minting of the goldsmith was episodic. The weight of the spool is about 4.2 grams, later it was taken as the basis for the weight unit - the spool, equal to 1/96 of a pound.

money signs- banknotes that are full representatives of real (gold) money and therefore signs of money, value and price.

spool- an old Russian weight unit equal to 1/96 of a pound or 4.26 g.

gold coin standard- a kind of metallic type of monetary system. A distinction was made between the gold coin standard, the gold bullion standard and the gold exchange standard. Under the gold coinage standard, there was free minting of coins with a fixed gold content of the monetary unit established by law, which contributed to the influx of gold into the country's monetary system. Signs of money - banknotes, freely exchanged for gold coins at face value. Therefore, banknotes superfluous to circulation were exchanged for gold (according to K. Marx), and coins, without depreciating, went into treasures.

Gold bullion standard- a kind of metal type of the country's monetary system, in which gold coins were not in circulation, and banknotes, as signs of gold and signs of value, were exchanged in a number of countries exclusively for gold bars, which required large amounts of exchanged banknotes.

Gold exchange standard- a kind of metal type of the country's monetary system in which gold coins were not in circulation, and banknotes in circulation were not directly exchanged for gold, but were exchanged for banknotes (mottos) of those countries in which the gold bullion standard was still legally preserved.

And

excess reserves- reserves that the bank (or the credit system as a whole) has in excess of the required reserves; total actual reserves net of required reserves.

Import- import of goods and services into the country from abroad.

Importer- a person who imports goods and services.

Investments(investment) - investments in real or fictitious capital.

Investment certificate- a security that testifies to the contribution of a certain amount to an investment company or investment fund and entitles its holder to receive income in the form of interest.

Consumer price index(CPI) - an indicator of the level of inflation in the country. It is calculated as the ratio of the cost of the consumer basket of the current year to the cost of the consumer basket of the previous (or base) year (in percent).

Endorsement- an endorsement made on nominal and warrant checks and bills of exchange.

Endorser- the person giving the endorsement.

endorser- the person in whose favor the endorsement is made.

collection file- card file of settlement documents received for collection. In the planned economy, there was a file cabinet No. 1 for urgent documents received for collection, and a file cabinet No. 2, the so-called "black file cabinet" for documents overdue in payment.

Collection operation- assuming by the bank, on behalf of the client (supplier of goods or services), obligations to complete the workflow and collect payment. The collection operation was used in the settlement of payment claims. Today it is used in settlements by checks, in the form of letters of credit and in the accounting (discounting) of bills of exchange.

Money market instruments- mainly represented by such instruments as term (within 1-12 months) repo, shares of money market mutual funds and other instruments of the latter.

Credit market instruments- banker's acceptances, commercial papers and some other instruments of the credit market.

Inflation- a long and uneven rise in prices, leading to the depreciation of national money.

Demand inflation- associated with an excess growth in aggregate demand for goods and services, which is not kept up with production volumes. As a result of excess demand, the balance of commodity and money supply is carried out through the price mechanism and, accordingly, prices rise in the country - demand inflation, initiated by the growth of aggregate demand.

cost inflation- is associated with an increase in production costs, which reduce the profits of commodity producers and make the production of certain goods unattractive, if not unprofitable, in connection with which the volume of production (aggregate supply) is reduced. As a result of a reduction in the aggregate supply of goods and services, the mass of goods is reduced, although aggregate demand remains unchanged, resulting in rising prices.

Mortgage- a specific type of collateral for an issued loan, represented by real estate (land plots, buildings, sea and river vessels, space objects) remaining in the use of the borrower.

Mortgage- credit relations based on a mortgage agreement, in accordance with which the bank provides loans for the construction or purchase of real estate.

Usability of the currency- the property of the currency to be used (bought and sold) on the main foreign exchange markets of the world (London, New York, Tokyo, etc.). The term - "usability" of the currency was introduced at the Jamaica Conference instead of the term "convertibility" of the currency, i.e. the exchange of banknotes for gold in banks, which de facto lost its economic meaning long before the demonetization of gold, which only consolidated the concept of "usability" de- jure.

Treasury bills- short-term government security, sold at a discount, and redeemed at face value.

Capital Creation Theory of Credit- reflects the idea of the priority of active operations over passive ones (and the resulting far-reaching autonomy of banks in providing loans). The mechanism for creating capital is that a deposit on the current account (in the form of an entry on it, accounted for by the liabilities of the bank's balance sheet) can be created at the expense of the previous (the emergence of the deposit) issuance of a loan (accounted for by the asset of the bank's balance sheet). In other words, the loan is provided in excess of the available credit resources, and the bank "creates" capital literally out of thin air, creating, however, an imaginary contribution. Currently, this theory is widely used in practice by banks in most countries of the world under the control of their liquidity.

Karbovanets- originally introduced in Ukraine as its national currency under Hetman Skoropadsky. Karbovanets were put into circulation and were in it from January 5 to September 24, 1918. In addition, Karbovanets was the national currency of Ukraine, which is part of the USSR. The gold content of karbovanets and its purchasing power within the USSR were the same as those of the Soviet ruble and the national monetary units of the other 15 republics that were part of the USSR, since for all the republics of the USSR there were uniform samples and denominations of banknotes. With the acquisition of independence by Ukraine, it introduces the karbovanets as its national currency, which was then (in 1996) replaced by the hryvnia.

Cash on hand- banknotes and small change held at the cash desk of an economic entity, including a bank.

Quasi money(lat. - "almost"), i.e. almost money - various highly liquid assets in the form of deposits in commercial banks, which can be turned into cash without loss within one day. Among the quasi-money are such as savings deposits, one-day repurchase agreements, one-day loans in Eurodollars, etc.

Cambridge Equation(Ms=kRU) is a mathematical expression of the demand for money in terms of the coefficient k, which is the inverse of the velocity of money (Tc = 1/U), and reflects the share of demand for money in the total income portfolio of business entities.

NBU foreign currency classifier- reflects the codes of all foreign currencies, and the currencies themselves are grouped into three groups almost identical to the three types of currencies. The need to use currency codes is due, first of all, to reducing the volume of interbank information transmitted and its accuracy. The NBU foreign currency classifier was first introduced in Ukraine in 1998 by the Resolution of the NBU Board No. 34, approved on February 4, 1998. Subsequently, changes were made to the Classifier.

Classical quantity theory of money- proceeds from the fact that an increase in the amount of money (both gold and paper) in circulation contributes to an increase in prices. At the same time, the classical quantity theory proceeds from the fact that the velocity of money and the volume of production are stable. Accordingly, under such conditions, changes in the money supply have a direct proportional effect on commodity prices.

Key currency- the same as the backup.

Collective currency- the currency of a group of countries in which settlements are carried out either only between the countries of this group or other countries that are not members of the union of these countries or the currency fund created by them.

Commercial securities- credit instruments of circulation. These include checks, bills of exchange, drafts, letters of credit, bills of lading, warrants, etc.

Commercial Course- the exchange rate of national money, set by commercial banks in the form of buyer and seller rates. The commercial rate is a market exchange rate that changes under the influence of supply and demand for a currency at any particular moment in time.

Components of monetary aggregates- specific monetary assets (and instruments) included in a particular monetary aggregate, in accordance with the recommendations of the central bank of a particular country.

Conversion- change in the initial conditions of government loans: the method of repayment, the currency of payment and profitability, as a rule, in the direction of its decrease.

Currency convertibility- free exchange of banknotes for monetary metal (gold or silver). There is currently no currency convertibility as both monetary metals are demonetized. Therefore, with the signing of the agreement on the demonetization of gold, the IMF introduced the term "usability" of currencies in the main foreign exchange markets of the world, thereby emphasizing the full (or partial) exchangeability of some currencies for other currencies.

Consolidation- the transformation of short-term government loans into long-term or perpetual. Simultaneously, unification (combining several loans into one) and conversion of loans can be performed.

Currency basket- method for calculating the weighted average exchange rate of a monetary unit in relation to a set of currencies in the basket. This method of calculation takes into account the specific weights of currencies in the basket and their exchange rates to the quote base. Used for all collective currencies, as well as for a number of national currencies. The set and share of each currency in the basket of currencies is determined by the share of exports of the products of the issuing country of the currency to the world community.

Correspondent account- a current account of one bank in another bank.

Indirect funding- movement of financial sources of funds (household savings) from households to firms, enterprises and institutions through money (financial) market intermediaries.

Currency quote(fr. coter to number, mark) - setting the exchange rate. When quoting a currency, the ratio of the purchasing power of two currencies is established. In this case, one of the two correlated currencies will be the quote base, i.e., the currency with which the second (quoted) currency is compared, the rate of which is determined.

Currency quotation indirect- the ratio of the national currency to foreign. In an indirect quotation, in which the national currency is valued in a foreign currency, the quotation base will be the national currency, and the quoted currency will be the foreign currency.

Direct currency quote- the ratio of foreign currency to national. In a direct quote, in which a foreign currency is valued in terms of the national currency, the quote base will be the foreign currency and the quote currency will be the national currency.

Economy monetization coefficient- is considered today in Ukraine as an important indicator of the provision of money (monetization) of the country's economy. At the same time, the coefficient of monetization of the economy is the reciprocal of the velocity of money, which, in fact, is the value that determines the need for money in the country's economy.

Short term loans- loans granted for a period not exceeding twelve months.

Monetary base- the same as the monetary base. The term "monetary base" emphasizes the credit nature of the banknotes of modern non-commodity money and money accounted for in bank accounts.

Account credit- the name of the right side of the accounts. The credit of active accounts records transactions that reduce account balances, while the credit of passive accounts records transactions that cause an increase in account balances. For example, for all passive accounts in banks, including current accounts of enterprises, the loan reflects the receipt of funds.

Credit- economic relations between the lender and borrowers regarding the return movement of the loaned value. The object of a loan is a loan.

Credit card- a plastic card that is the property of the bank. Designed to record purchases on the account of an individual or legal entity, which must be paid later. The seller receives the money immediately, regardless of when the buyer pays for the purchase. Bank credit cards are widely used to take out credit relations with the cardholder outside the bank.

credit system- a set of rules established in the country for the implementation of credit relations, as well as credit institutions of banking and non-banking types that implement these rules in credit relations.

Creditor- the natural or legal person who provided the loan to the borrower.

Lender of last resort- the central bank of the country, which provides loans to commercial banks to maintain their liquidity in cases where the loan capital market receives required amount funds can be difficult.

credit unions(and their associations) - associations of individual citizens that are created on a share basis. Most often, credit unions and credit partnerships specialize in lending services to the poor. The credit union carries out mainly lending to consumer needs and less often mortgage lending to its members. The formation of credit unions and credit partnerships can be carried out on a professional, territorial, religious or other basis. The number of founders, for example, of a credit union in Ukraine, cannot be less than 50 people.

Credit partnerships(and savings and loan associations) - associations of individual citizens that are created on a share basis. The credit partnership carries out mainly mortgage lending and less often lending to the consumer needs of its members. The formation of credit partnerships can be carried out on a professional, territorial, religious or other basis.

Credit risk- the risk of non-repayment of the loan by the borrower.

Curve IS- graphical interpretation of the relationship between the rate of interest and national income at equilibrium in the commodity markets.

LM curve- graphical interpretation of the relationship between the rate of interest and national income in equilibrium in the money markets.

Cross course- represents the exchange rate in which the US dollar is neither the quote base nor the quote currency (quote currency). And although there is no US dollar in the cross rates, the exchange rates against the US dollar serve as the basis for calculating the cross rate. For example, the Swiss franc to Danish kroner (DKK/ /CHF) is a cross rate. The cross rate (eng. cross - crossing) is determined on the basis of the ratio of two currencies through their rate to the third currency. Most often, in practice, the US dollar (or other reserve currency) is used as the "third" currency, which can either be the quote base in both currencies of the cross rate, or the quote currency, or be the quote base in one currency, and be the quote base in the other currency. quote currency. In practice, the cross-rate is the ratio of two foreign currencies, determined on the basis of their exchange rate to any third currency. With this approach to the cross rate, it may contain the US dollar, which does not correspond to the strict concept of a cross rate.

Circulation of income and products is the flow of money paid for goods and services, balanced by the corresponding flow of goods and services exchanged between firms and households.

Circulation of enterprise funds- a consistent and constant change in the forms of value of the enterprise's assets: monetary (advance of funds into circulation), commodity (inventory), productive (work in progress), commodity (finished products) and again monetary (proceeds from product sales).

Kuna- the old Russian name of the counting monetary unit, which came from the name of the valuable marten fur used as money.

Bid-course interbank exchange rate. A bank that quotes a currency usually names the Bid rate (buy rate) and Offer (sell rate). The Bid rate with a direct quote is the rate at which banks buy foreign currency for the national one. With a direct quote, the excess of the Offer rate over the Bid rate is called spread or margin.

Offer course- interbank exchange rate for the sale of foreign currency for the national currency by one bank to another bank.

Purchase rate- the commercial rate at which the bank buys foreign currency for the national one. With a direct quote, the buyer's rate is always lower than the seller's rate.

Sale rate- the commercial rate at which the bank sells foreign currency for the national one. With an indirect quotation, the seller's rate is always lower than the buyer's rate.

Spot rate - this is the contractual interbank rate, which is the current exchange rate in force on the date of the conclusion of the contract, at which the currency must be delivered no later than on the second business day, not counting the day of the conclusion of the contract.

Course forward- contractual interbank exchange rate for forward transactions. Forward transactions have standard terms: 1 month, 2 months, 3 months, 6, 9, and 12 months. It is important to note that forward exchange rates are calculated during the implementation of a forward transaction, the conclusion of which means an agreement between two parties to exchange one currency for another after a certain period at the rate set when the contract was signed. At the same time, the forward transaction is firm, i.e., obligatory for execution. The usual forward rate (outright forward, English outright - direct, open)) is based on a premium or discount determined by the swap market. Therefore, for simple forward transactions, it is enough to know that the forward rate is equal to the spot rate plus or minus the forward margin, also called the premium or discount. Unlike the forward rate within a swap, the forward rate that is not associated with swap operations is called the simple forward outright rate.

Latin Union- was the prototype of the European Union. In 1865, a number of countries (Belgium, Italy, France, Switzerland, and then Greece), considering bimetallism the best type of monetary system to maintain the stability of their national money, concluded a monetary convention (1865) for a period of 15 years on the creation of a Latin monetary union providing:

free coinage of gold and silver coins in denominations of 5 fr. and higher, subject to their official value ratio of 1:15.5 (i.e. gold is 15.5 times more expensive than silver);

obligatory acceptance of these coins by all state cash desks of the member countries of the union; the same weight content and fineness of the metal in national monetary units (4.5 g of pure silver or 0.29 g of pure gold) in all countries, equal to the content of the French franc;

free circulation of national coins made of gold and silver of some member countries of the union on the territory of other member countries of the union; for defective (the nominal value of which is higher than their value) small silver coins, denominations of less than 5 francs, a limited closed coinage was established, while limiting each payment in this coin to no more than 50 francs. By the beginning of the First World War, the Latin Monetary Union had practically ceased to exist.

Ligature- an admixture of a cheaper metal added to a coin made of precious metals (or in general to noble metals) to increase their hardness or reduce the cost. The content of the ligature in the alloy is determined by its breakdown.

Leasing- these are operations of a leasing company or a bank that provides leasing services and consists in the fact that an enterprise (lessee or lessee) receives for use for a long time on the terms of leasing a means of production from a lessor (lessor), which has either already acquired or specially for the lessee acquires from the supplier (manufacturer) the means of production he needs. Currently, commercial banks have begun to participate in leasing operations, acting as lessors (landlords).

The objects of leasing can be all types of industrial equipment, means of transport, buildings, structures, 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 liquidity- availability of balance in the bank's balance sheet between the amount and term of release of funds on the asset in cash and the amount and term of forthcoming payments on the bank's obligations.

Liquidity of monetary assets- the ability of monetary assets at any time to turn into cash without loss.

Liquid approach to cash assets- the ease with which the owner of a monetary asset can turn it into cash (sell / redeem this asset for cash) at any time at minimal cost. The liquid approach thus emphasizes the importance of the function of money as a store of value (purchasing power).

Pawnshop- a credit institution of a non-banking type, issuing loans to the population on the security of things. It got its name from the Italian province of Lombardy, where such operations were first carried out and, accordingly, pawnshops arose.

Marxist theory of money- considers money (gold) from the position of labor value as a commodity that has use value and value and performs the role of a universal equivalent. In Marxist theory, the value of money and goods is determined by the labor costs for their production. However, considering the price of a commodity as a monetary expression of its value, the Marxist theory did not take into account the theory of marginal utility, according to which the price of a commodity is determined not only by the labor costs for its production, but also by its usefulness ("need") to society in specific conditions. In addition, Marxist theory proceeded from the fact that the sum of prices of circulating goods determines the amount of real money needed for circulation, although practice has refuted this approach to the relationship and interdependence of the money supply (both gold and paper money) and commodity prices.

Price Scale- the weight of the precious metal, legally assigned to one monetary unit of the country.

International liquidity- the country's ability to fulfill its obligations to other creditor countries in a timely manner using international means of payment acceptable to the creditor country. In a broader sense, international liquidity is the totality of all sources of financing and lending available to the country for the global payment turnover. Therefore, the international liquidity of countries depends on the provision of the entire world monetary system with international reserve assets. An indicator of a country's international liquidity is, as a rule, the ratio of its gold and foreign exchange reserves available to it to the sum of its three-month merchandise imports.

International Monetary Fund- interstate coordinator of currency relations, created in 1947 and intended for international state regulation currency relations. The IMF is the institutional basis for currency regulation in the global monetary system, whose recommendations are taken into account by almost all countries.

International credit- form of credit. A way of existence of credit relations between residents and non-residents of the country, in which governments, banks, firms and individuals can act as creditors (and borrowers), and loans are granted in eurocurrency, i.e. in the currency of a third country.

Exchange value- is represented as a quantitative ratio, as a proportion in which use-values of one kind are exchanged for use-values of another kind.

Metalistic theory of money- identified the wealth of society with money, and money with precious metals, believing that the only real wealth of society is gold and silver, which by their nature and essence are money, although gold and silver by their nature are not. Accordingly, the metalistic theory considered only those functions of money that can only be performed by gold and silver - the function of a measure of value, the function of treasures and the function of world money. As for such functions of money as a means of circulation and a means of payment, which banknotes can also perform, these functions remained outside the field of view of the theory under consideration.

golden dot mechanism- deviations of the exchange rate from the currency parity within the limits of gold points in the conditions of free movement of gold between countries. Distinguish between the upper and lower golden points of the exchange rate. The upper gold point (the import point at which gold was imported into the country) is equal to the exchange rate plus the cost of transporting the metal from one country to another; the lower gold point (the export point at which gold was exported out of the country) was equal to the exchange rate minus the cost of the corresponding transportation. (Transportation costs amounted to 0.5% of the value of the transported metal from one country to another). For example, if the currency parity of the pound sterling in US dollars was 4.87 (7.322383 / 1.50463), then the exchange rate of the f.st. could be either 4.894 (4.87 + 0.024) dollars per pound (import top gold point) or 4.866 (4.87 - 0.024) dollars per pound (export bottom gold point).

Monetarism- a school of economic thought that focuses on changes in the amount of money in circulation as a determining function of prices, income and employment.

Monetization of the economy- provision of money for the processes of production and circulation of GDP.

Monometallism- a type of monetary system in which the role of a universal equivalent was played by one metal - silver or gold (not counting copper in Ancient Rome), although another metal could be in circulation, which, however, could not play the role of a (second) universal equivalent, in As a result, his role was limited.

Cash settlements- settlements carried out with the help of cash.

Cash in circulation- cash outside banks.

Cash- at the present time banknotes and small change from base metals.

Naturalistic theory of credit- considered the essence of credit as a way of transferring natural, i.e., material, goods from one hand to another. Considering the object of credit relations in the form of natural goods created without the participation of credit, naturalistic theory assigned a passive role to credit, putting the production of natural goods in first place and credit in second place, although it saw a close connection between credit and production.

national product- the total value of all final goods and services produced in the economic system in a year.

national income- the total income received by households, including the total amount of wages, rents, interest payments and profits.

Defective money- coins (including those made of precious metals), the nominal value of which is higher than their value.

Non-residents- individuals and legal entities permanently residing and/or carrying out their activities in the territory of other countries (and according to their laws); foreign citizens temporarily staying on the territory of Ukraine; international organizations, consulates, representative offices, as well as branches of various foreign companies on the territory of Ukraine that do not carry out entrepreneurial activities.

Non-trading foreign exchange transactions- transactions with the currency of individuals for foreign currency transfers, transfers of foreign exchange funds by pension funds (by agreement between them) for the payment of pensions to their citizens living in the territories of other countries, settlements using international plastic cards, currency exchange operations, etc.

Nogata- the monetary unit of ancient Russia equal to 1/20 of a silver hryvnia or hryvnia kuna. One nogata was more than one kuna, since separate skins of martens (or certain parts of them) were sewn together into one fur cloth, known in the "fur" monetary system as nogata.

nominalist theory of money- (nominalism), in contrast to the metallic and Marxist monetary theories, denies any internal connection between money and precious metals. According to nominalists, money is only an ideal unit of account, with the help of which exchange proportions between goods are determined and these monetary units do not have any intrinsic value. Nominalists proclaim nominal paper money, devoid of a commodity nature, as conventional signs and a creation of state power.

Nominal interest rate- represents (at actual prices) the real rate of interest on loans adjusted for inflation (CPI).

Nominal value of money- face value (the face value indicated on the money ticket).

Nominal cash income- this is the amount of monetary units that an individual receives in the form of wages or other types of income - for example, profits.

Required reserve ratio- the value (as a percentage of the deposit attracted funds) of cash on hand or highly liquid assets, which commercial banks are obliged to keep in the central bank on their correspondent accounts, established by the central bank of the country.

Interest rate- the share of payment for the use of the loan (loan interest) in the amount of the loan (in percent).

Normative money multiplier- an indicator of the potential ability of commercial banks to multiply the money supply. It is calculated as the reciprocal of the reserve requirement set by the central bank.

Bond- a security that represents an obligation of the issuer to repay the debt after the expiration of the period indicated on it with the payment of interest, including coupons, if any, in the bond.

exchange rate- the rate that is set by commercial banks in transactions with clients for foreign exchange transactions through their operating cash desks and currency exchange offices.

Required reserves of commercial banks- funds of banks which they are obliged to keep in their accounts with the central bank of the country in accordance with the norms of required reserves established by the central bank.

government bonds- Bonds of internal state loan.

REPO operations(from the English repurshase agreement - repurchase agreements). Repo transactions (RP) are agreements on the repurchase of securities sold by a bank (or other credit institution) to an individual or legal entity, which are in the portfolio of a bank (credit institution) at a higher price. The economic meaning of repo operations is that a bank (or other credit institution) is provided for a period not exceeding one day (or another period established by the agreement) with a loan secured by securities, upon repayment of which the bank pays interest.

Operations related to the movement of capital- represented by a group of transactions consisting of direct and portfolio investments, credit transactions (for a period of more than 180 days) and transactions related to the movement of property rights.

The main property of the product- the unity of use-value and value, since a product that has use-value becomes a commodity when it is produced for sale. Accordingly, a commodity always has both a cost and a price without which the commodity does not exist.

Official exchange rate- the national currency rate set by the central bank. The official exchange rate is uniform and does not have a buyer's rate and a seller's rate.

Order of payments from the current account- fulfillment by banks of claims to the same client account on the basis of documents received during the day, carried out in a certain order. In particular. currently in Ukraine, the sequence of payments from the current account is as follows: payments by court decision to satisfy claims in connection with injuries received at work, death, as well as claims for the recovery of alimony; payments by court order to satisfy claims regarding severance pay and wages to persons working under contracts, as well as under copyright agreements; payments under other court decisions; payments for settlements with budgets; payments for all other documents, payment for which is made in the chronological order of receipt of these documents.

Balance liability(from lat. passivus passive, passive) - the right side of the balance sheet, reflecting the sources of funds, grouped according to their ownership and purpose.

pension funds- credit and financial institutions of non-banking type. They can be public or private. State pension funds are established by law by the government of the country and municipal local governments. Private pension funds emerged as a counterweight to poor public provision. Pension funds operate on a credit basis: first, they attract funds from workers and employees, and then they begin to return them by paying pensions. At the same time, pension funds are also created on financial basis due to the irrevocable provision of funds to them by their creators. In addition, in a number of cases, pension funds pay disability pensions, survivors' pensions, disability pensions, etc., i.е. those who have not contributed any funds to the pension fund. In these cases, pension funds also operate on a financial basis.

Primary liquidity reserves- such assets of the bank that at any time can be used by it without loss to maintain its liquidity: cash and cash equivalents.

Primary securities market- the market where securities are sold by their issuers.

floating interest rate- the rate, the size of which is reviewed at regular intervals during the term of the loan.

floating exchange rate- the exchange rate, which changes under the influence of supply and demand in the foreign exchange market.

Planned payments- a method of payment in which planned payment periods, one-time amounts of planned payments and the total amount of delivery for a specific period are set. Under such conditions, the volume of deliveries and the amount of one-time planned payments for a separate planning period may not coincide. However, at the end of each month, reconciliation of deliveries and amounts of payments is made and the corresponding recalculation is made, which is finally made for three consecutive months. This method of payment is convenient for those economic entities between which there are constant and frequent deliveries of goods or services.

plastic card- is a key element in the system of electronic payments through ATMs-cashiers, including in the system of the trading network. With the help of plastic cards, automatic cashiers are activated. They, together with the PIN code, identify the user for the vending machine, since the PIN code is also on the card, although it is not visible. In addition, a plastic card is a technical tool for the card user to manage funds on his personal "card" account in a bank.

Payment discipline- is to make payments on time. Accordingly, banks control the timeliness of submitting documents to the bank, the timeliness of debiting funds from payers' accounts and transferring them to the accounts of suppliers (or recipients of funds), and observing the order of payments.

Payment Crisis- a state of the economy when there is a shortage of means of payment in the country. A vivid example of the payment crisis in Ukraine is the payment crisis caused by the liberalization of prices in the country carried out in early 1992 without a corresponding issue of money, which gave rise to a chain of non-payments.

Purchasing power of money- this is the amount of goods and services that can be purchased for one monetary unit at a given time.

Full money- coins of precious metals, the nominal value of which corresponds to the value of the metal from which they are made.

Creeping inflation- characteristic of developed countries. It has low rates of price growth (3-5% per year), which are considered as a kind of economic development stimulator. As prices rise and the purchasing power of the population falls, workers and employees demand (and achieve) higher wages. But an increase in wages automatically leads to a new increase in prices. Ultimately, prices and inflation spiral

Cheap money policy- the policy of the central bank, aimed at increasing the money supply in the country by monetary methods of regulation, in order to increase the growth of investment.

Expensive money policy- the policy of the central bank aimed at reducing the money supply in the country with the help of monetary regulation instruments in order to reduce inflation.

wealth portfolio- the totality of assets owned by an individual. As part of the portfolio of wealth may be cash and cash in bank accounts, securities and other property.

Portfolio investment- investments in shares, bonds and other securities of foreign enterprises, states and international organizations in order to obtain a higher return on capital, in comparison with investments in securities of national issuers.

portfolio approach- considers an individual at a particular moment when he owns certain property (cash, funds in bank accounts, public and private securities, capital in material form (house, cottage, car, yacht, industrial buildings and structures, etc.). and makes decisions about the share of which assets it is more profitable for him to increase in his portfolio at a given time.

Damage to coins- a deliberate increase in the ligature in a silver or gold coin in order to obtain share premium.

consumer credit- a form of credit in which a loan is issued for consumer needs.

"Almost" money- the same as quasi-money.

prime right(English prima rate first rate) - the lowest (base) interest rate at which short-term loans are provided to the most creditworthy and reliable customers with an impeccable financial reputation

Prepayment- a payment that precedes the shipment of goods to the buyer.

Prepayment is contrary to the principles of organization of non-cash payments and the essence of money as a means of payment and creates the buyer the risk of non-shipment of goods by the supplier.

Inflation limits- external and internal, determined by the disadvantage for the issuer to continue issuing new credit money.

Principles of organizing cashless payments- rules for non-cash payments by business entities and banks. Among the principles of organization of non-cash payments, it is worth mentioning: the implementation of all non-cash payments through banks, with the consent of the account holder (with the exception of the forced debiting of funds), following the shipment of goods or the provision of services (with the exception of the existing prepayment) and using modern technical means.

Principles of organizing lending- rules for issuing and repaying loans, which include: targeted, differentiated, paid, urgent, secured and contractual nature of lending.

Forced debit- write-off by the bank of funds from the current account on the basis of decisions of the judicial authorities.

Try(lat. probo I test, evaluate) - the quantitative content of the precious metal (gold, silver, platinum and palladium) in the ligature alloy (see ligature), from which they are made jewelry, coins, medals, etc.

Bill protest- a notarized refusal to pay or accept a bill.

Percentage credit- the ratio of the mutually offset amount to the entire amount of funds presented for offset, multiplied by 100.

Interest rate- the same as the rate of loan interest.

Interest rate ex ante- the real interest rate, which takes into account the inflation expectations of the lender and the borrower at the time of signing the loan agreement.

Interest rate ex post- real interest rate, which takes into account the actual changes in the inflation rate at the time of signing the loan agreement.

Direct funding- Direct transfer of financial sources of funds (household savings) from their owners to firms, enterprises and organizations.

Direct investments- represent investments of capital through the creation of branches or subsidiaries abroad, which give the investor the right to participate in the management and control over the activities of a foreign enterprise or firm. The IMF classifies as direct investment such investments of the investor's capital that make up at least 25% of the shares of a foreign enterprise.

Equilibrium interest rate- the rate of loan interest, which corresponds to such a level of national income at which macroeconomic equilibrium is achieved in the economic system, i.e., equilibrium is observed in the goods market and the money market.

Settlement discipline- represents the execution of settlement documents in accordance with existing requirements.

Settlement check- a check used only in non-cash payments.

Rationing- method of distribution of products per capita, for example, by ration cards, by coupons, etc.

Real interest rate- represents the level of the interest rate that could be at constant prices or a stable national currency.

Real income is the amount of goods and services that can be purchased with nominal money income.

Revaluation(lat. - a prefix meaning renewal, and - I mean, I stand) - an increase in the exchange rate of national money in relation to foreign (national or collective) currencies, caused by an artificial overvaluation of the national currency against other currencies, or the resulting deflation in the country.

Regulatory capital of the bank- the bank's own capital, which is one of the most important indicators of banking activity, the main purpose of which is to cover losses from various risks from banking activities and ensure the protection of deposits, financial stability and stable operation of the bank. The bank's regulatory capital consists of core and additional capital. The amount of the bank's regulatory capital cannot be less than 8% of total assets and certain off-balance sheet funds, weighted for risk and reduced by the amount of the corresponding reserves created for active operations

Rediscounting- rediscounting or re-discounting (from discount - reduction), repeated reduction of the face value of the bill. Rediscounting allows the central bank to rediscount the bills of commercial banks when issuing loans secured by them previously discounted commodity bills.

Register of accounts- a list of accounts indicating their numbers, amounts for each account separately and the total amount of invoices submitted, which are attached to settlement documents submitted to the bank.

Register of checks- a list of checks (with indication of their main details), reflecting the total amount of checks submitted for collection.

Rezana- "fur" monetary unit equal to 1/50 hryvnia kuna.

Reserve currencies- These are, first of all, the national freely-used currencies of individual highly developed countries. However, collective currencies also belong to the reserve currencies. A distinctive feature of reserve currencies is their role as an international means of payment, in connection with which all countries form their foreign exchange reserves (to maintain their international liquidity), primarily in these currencies.

Residents- individuals and legal entities permanently residing and/or carrying out their activities on the territory of Ukraine (and according to its laws); citizens of Ukraine temporarily staying abroad; representative offices, consulates of Ukraine abroad, as well as branches located abroad, but not carrying out entrepreneurial activities.

Exchange rate regime is the order in which it is established and used.

Remedium(lat. remedium - a remedy against something, to prevent something) - a legal deviation of the actual weight and sample of a coin from the established norms. Remedial wear of coins was allowed in different countries from 0.1 to 0.5% of the standard (ligature) weight of the coin, and such coins were still accepted in the internal circulation of the country as full-fledged coins. Accordingly, if the weight of the coin was reduced to a remedium, then such coins were exchanged for new ones of the same denomination as the worn coins presented for exchange. However, if the coin was worn more than it was provided for by the remedium, then it became defective and lost its legal tender.

Under such conditions, a defective coin could be exchanged by the state for a full-fledged coin, but of a lower denomination corresponding to the weight of the defective coin presented for exchange. It follows from this that the costs associated with wearing out the coins within the limits of the remedium were borne by the state.

Restriction(restrictive policy) restriction of something, such as the money supply, in connection with which the volume of lending by commercial banks is limited by increasing the reserve requirement and the central bank discount rate.

Refinancing- the process of repayment by the government of its previously created obligations (in the form of issued government bonds) at the expense of proceeds from the placement of a new issue of government bonds on the financial market.

Market interest rate- the rate that exists in the money market at any given time.

FROM

Savings deposits- demand deposits.

SWIFT(Eng. Society for Worldwide Interbank Financial Telecommunication - Society for Worldwide Interbank Financial Telecommunications) is an interbank organization that transmits information on interbank settlements and sets certain standards for telegraph messages for information transfer.

Free coinage- minting coins at mints from metal provided by any persons.

Freely usable currency- the national currency of the issuing country, which has not introduced any currency restrictions on currency transactions with currency values for either residents or non-residents.

Swap(English - swap) - operations involving the simultaneous purchase and sale of currency for approximately the same amount, but for different periods. Accordingly, in swap operations, options are possible: spot versus forward, or forward versus forward.

seigniraj(English seigniorage - tax on the right to mint coins) - the issuer's income received from the issue of money. The share premium is equal to the difference between the value of the issued nominal money supply and the cost of its production. Taking into account the fact that at present in world practice the intrinsic value (production costs) of one banknote (of any denomination) does not exceed 2.5 cents, it follows that the issuer's share premium from the issue of a one-dollar ticket is 97.5 cents, and, for example, , a hundred-dollar ticket - 99 dollars and 97.5 cents.

Scruple- an old unit of pharmaceutical weight, equal to 20 grains, i.e. 1.24 grams.

Slampflation(eng. - inflation and slump - a sharp drop, crisis) - is characterized by the fact that along with hyperinflation, there is a sharp drop in production and an increase in unemployment.

Modern Quantity Theory of Money and Prices- a theory in which the velocity of money is a variable (rather than a constant, as in the classical quantity theory), and the relationship between the money supply, real and nominal output and the level of commodity prices is asynchronous. Therefore, the modern quantity theory in its first approximation is the theory of demand for money.

Modern money(in the form of banknotes and coins made of base metals) - do not have their own labor value (have either conditional or imaginary value), but have purchasing power; are not a commodity and an equivalent of value; have a credit nature, being debt obligations of the banks that issued them; represent only a sign of price (in contrast to banknotes, which are a full representative of gold, value and price).

Special Drawing Rights- SDR or SDR (SDR English. Special Drawing Rights) is a collective currency within the IMF. Since January 1, 1999, the SDR basket has included four national currencies: the US dollar, the British pound sterling, the Japanese yen and the euro (which has replaced the German mark and the French franc). The SDR has been issued by the IMF since 01/01/1970 as international reserve and means of payment to settle the balance of payments and maintain international liquidity. From April 1, 1978, amendments to the IMF charter provided for the consolidation of

SDR status of the main reserve currency. Accordingly, the SDR is the quote base not only for any other currencies, but also for other reserve currencies. Being the main reserve asset, the SDR is used only at the level of central banks and international organizations and its holders cannot be banks or corporations, firms, enterprises. Payment Method- is executed as a payment immediately; with deferred payment; combined payment (up to 30% immediately, and the rest with deferred payment); scheduled payments, when the amount of payments for specific periods is stipulated by the contract, regardless of the amount of supply of goods or services in these periods, and the final settlement is made at the end of the period; in the order of offsetting mutual claims, when the same amount of mutual claims is offset by the partners themselves, and only the amount of the outstanding balance passes through the bank.

Spread(eng. spread the difference between the cost and the selling price) is a term widely used in foreign exchange and credit relations.

Demand for money- the amount of monetary assets in the form of cash and funds in bank accounts that business entities wish to have at a given time in their portfolios of wealth (assets).

Average interest rate- the rate of loan interest, calculated on average over a long period of time, for example, for the entire industrial cycle.

Term deposits- deposits placed in the bank for a specified period.

Loan- the object of the loan in the form of a monetary amount of funds (or in the form of commodities in a civil loan), provided to the borrower for a while.

Loan capital- this is the money capital given on loan to entrepreneurs to service the circulation of their funds in order to obtain income by the creditor in the amount of the average rate of profit. The loan capital of the country is concentrated in banks.

loan account- an account opened by a bank to account for loans issued and their return.

Stagflation- a combination of hyperinflation with a deep economic crisis in which the growth of output has stopped or is stopping.

The value of money- labor costs for their production. For gold coins, these are the costs of extracting the amount of gold that is legally assigned to one monetary unit and the costs of minting coins. For banknotes and banknotes, these are the costs of producing paper and ink, as well as the costs associated with printing money. At present, the cost of producing one banknote of any denomination in the world does not exceed 2.5 cents. Subordinated debt- debt arising from the issuance by the bank of simple unsecured obligations that cannot be claimed from the bank earlier than five years

Inflation targeting- an inflation management mechanism that provides for a systematic assessment of the level of inflation that it can reach in future (within the forecast period) and regulation of the existing level of inflation to the level established in accordance with the set goal.

Fixed interest rate- (fixed) interest rate, which does not change during the entire period of use of the loan, which is unprofitable for the lender with medium-term and, especially, long-term loans in conditions of inflationary depreciation of money. In these cases, floating (changing) interest rates are set.

Thesaurus(gr. thesaurus - treasure) - the accumulation of precious metals (gold, silver, platinum, and other metals) in private collections in the form of a treasure (i.e., out of circulation). As for collecting modern commemorative and commemorative coins made of gold, platinum and silver, their real value is much lower than that indicated on them. However, the collection and accumulation (in a jug) of coins intended for collection changes their market value over time, which in some cases is tens and hundreds of times higher than both their nominal and, moreover, their real value. In this sense, we can say that collectible coins are being hoarded. At present, hoarding is understood as the accumulation of bank notes outside the banking system - "in capsules".

Current foreign exchange transactions are reflected in the current balance of payments of the country, characteristic feature which (unlike the reported balance of payments) is the presence of a balance, which, moreover, is subject to daily changes that affect changes in the country's exchange rate. The negative balance (deficit) of the current balance of payments is compensated by other items of the reporting balance of payments. Current foreign exchange operations are represented by trading, non-trading, credit operations for up to 180 days and operations on income received from operations related to the movement of capital.

Current account- an account of an economic entity in a bank, on which all its current receipts and payments are taken into account. At the same time, the funds on the current account can be used by its owner only on the basis of instructions to the bank in which the account is opened.

Telebanking- remote customer service of the bank using telephone communication channels. "Telebanking" is used to carry out a number of operations on the client's account related to the payment of public utilities.

Shadow economy- activities of business entities outside the legal field of the country.

Type of monetary system- such a device of money circulation and circulation in the country, which is determined by the nature and essence of the money circulating in it and is legally fixed by the state.

Types of monetary systems- differ in the type of material from which money is made (metal and paper), the number of metals that 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 foreign exchange transactions- export-import transactions involving the existence of current accounts in foreign currency (with authorized banks of Ukraine) and related to the implementation of international settlements, with the purchase and sale of currency on the Interbank Foreign Exchange Market of Ukraine (IMRU), with deposit and loan operations, for a period of up to 180 days.

transactional(eng. transaction - transaction) checking deposit - a deposit created for settlements for goods and services, which can only be managed with the help of checks.

Transfer payments(English transfer payments - transfer of rights) - a form of redistribution of part of the state budget revenues in the form of payments to the citizens of the country (and private entrepreneurs) of funds from the state budget. Transfer payments do not represent any compensation for labor services rendered to the government.

Draft- unaccepted bill of exchange.

Drawer- the person who issued the bill of exchange (draft).

Drawee- a person liable to pay a bill of exchange (draft).

Trust operations- see trust operations.

trust company(eng. trust trust) - trust companies that accept in trust management the property of principals in material and monetary form. In accordance with world practice, trust companies are required to transfer 90% of the income received to the trustee, and 10% can be kept for business development.

Narrow money supply- money supply by aggregates М0 and М.

Unga- an old Russian measure equal to 24 scruples (see scruples).

Equation of exchange- a mathematical expression of the quantitative theory of money and prices, derived by I. Fisher. The exchange equation has the form MU = RU and reflects a simple exchange dependence: how many goods are sold - so many are bought.

Discount rate- the rate of rediscounting and refinancing, set by the central bank of the country for loans.

fiduciary issue(from Lat. - a transaction or agreement based on trust) - the issue of bank notes that have no connection with gold, and based on the public's trust in the issuer (the government and its central bank).

Fixing- order of establishment. such a level of the exchange rate, which takes into account by the end of the working day of the exchange, all declared transactions for the purchase and sale of this currency, taking into account the maximum convergence of the conditions of customer orders with the conditions of transactions.

Fictitious capital- securities - shares, bonds, etc.

The value of fictitious capital depends on the market value of the securities. Unlike real capital, the amount of profit from which depends entirely (ceteris paribus) on the amount of capital, fictitious capital is characterized by an inverse relationship - the amount of fictitious capital depends on the amount of income on this capital.

Money market financial intermediaries- banks, exchanges, non-bank credit institutions. However, since these organizations do not mediate in the distribution of financial resources, in essence they, functioning in the money market, are intermediaries in the money (financial) market.

Fiscal issue- same as fiduciary issue.

Financial companies- companies operating on the basis of raising funds, mainly on a non-repayable basis and providing them on loans to third parties.

Financial market- the money market, in which money is exchanged for monetary assets at the opportunity cost of assets. Financial - the money market is called because on it various investors can acquire funds (resources) for economic activities. "Financial market" - the collective name of such money markets as the foreign exchange, stock market and loan capital market. A feature of the money (financial) market is that it is characterized, first of all, by the frequency of operations, and not by a specific geographical place of its existence. Secondly, since modern money is not a commodity, it has no price (without which there is no commodity) and is not produced for sale, money is not sold or bought on the market (in the traditional sense of sale and purchase acts), but is exchanged for money. assets at the opportunity cost of these assets, expressed in the nominal rate of loan interest.

Stock market- a market in which the object of purchase and sale are stock securities - stocks and bonds.

Stock securities- titles of ownership in the form of shares, government and corporate bonds, with the help of which their issuer creates or increases share capital (authorized fund). Stock securities, unlike commercial securities (checks, bills of exchange, drafts, etc.), are issued to create funds and therefore are issued in packages, and not in single copies, which is typical for the issuance of commercial securities.

Form of non-cash payments- method of document circulation and payment. There are such forms of non-cash payments: settlements in the order of settlements by payment orders, payment requests, payment requests-orders, checks, in the order of offsetting mutual claims and letters of credit.

money shape- the external manifestation of their essence. Valid (gold) money had two forms - the form of gold bars and the form of gold coins. Banknotes (both changeable and non-changeable for metal) had cash and non-cash forms. Modern credit money in the form of bank notes and coins made of base metals also has two forms - cash and non-cash.

Loan form- the external manifestation of its essence, the way of its existence, internal organization. There are banking, commercial, consumer, mortgage, state, international and civil forms of credit.

Fisher formula- equation of exchange (MU=RU).

Function- the simplest manifestation of one of the sides of the essence of the subject.

Functions of real money- measure of value, medium of exchange. means of treasure formation, means of payment and world money.

Functions of commercial banks- creation and destruction of new credit money and other credit instruments of circulation; mobilization of cash receipts, incomes and savings and their transformation into loan capital; an intermediary in the placement of loan capital (including an intermediary in the provision of loans); intermediary in payments between individuals and/or legal entities.

Credit functions- redistributive and the function of replacing cash with credit operations of the bank (the function of creating credit instruments of circulation), objectively revealing the essence of credit in all its forms.

Functions of non-bank credit institutions- the functions of an intermediary in the implementation of loan capital, the function of mobilizing income and savings and turning them into loan capital, and the function of a provider of specialized non-banking services.

Functions of modern money- medium of circulation, measure of value, means of payment and means of preserving and accumulating value.

Interest rate functions- distributive-stimulating, saving the value of loan capital and investment.

Functions of the central bank- function of the emission center of the country; body of monetary regulation of the economy; government banker; "bank of banks"; methodological and methodological center of commercial banks and non-bank credit institutions and, finally, the function of control and supervision over the activities of commercial banks and non-bank credit institutions.

Lb- an old measure of weight, equal to 409.51 g.

Hartal money- from the word "harta" - a sign, i.e. money without value, made of paper, legally put into circulation and generally recognized by society. They have a coercive purchasing power in the form of the face value of banknotes and base metal coins. The real purchasing power of money put into circulation is determined by the market.

Lame currency- a monometallic type of monetary system in which the role of a universal equivalent was performed by one metal - gold or silver. However, another, less valuable metal, such as silver or copper, could be used along with it. Under such conditions, the monetary system was on two metal legs: a golden (long leg) that served as a universal equivalent and was used both within the country and on the world market, and a silver (short leg) that did not play the role of a universal equivalent and was used only within the country as exchange metal.

Price- this is the amount of money that is paid for a product or service at a particular point in time.

The value of money- the same as the purchasing power of money.

Securities- a general term for stock securities (stocks and bonds), some other financial instruments of the stock market, such as treasury and municipal bills and bonds, as well as commercial papers (checks, bills, drafts, etc.)

Partially used currencies- currencies, the issuing countries that have introduced currency restrictions on currency transactions with currency values only for residents.

Fractional Bank Reserves- reserves, in the form of highly liquid assets of a commercial bank, providing only part of the coverage of its deposits.

Check- an unconditional order of the drawer of the check to the bank to pay the amount indicated in the check to the person indicated in it.

check deposit- a deposit placed in a bank, which its owner can dispose of only with the help of checks.

Check holder- a person legally in possession of a check received from a drawer or endorser in payment for goods or services.

Check drawer- a person who has handed over a correctly executed check to the seller of goods or services.

black filing cabinet- collection card file No. 2, in which payment requests overdue were placed in the presence of an acceptance form of payment.

Net taxes- Taxes received by the budget minus transfer payments.

Broad money supply- characterized by any of the monetary aggregates outside of M.

The 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 money supply, in connection with which a policy of cheap money is introduced (interest rates and the required reserve ratio are reduced).

Export- Export of goods and services abroad.

Exporter- a person who exports goods and services.

ECU(English European Currency Unit) - European currency unit) - the former collective currency of the European Monetary System (EMS). The ECU existed for almost 20 years (from 1979 to 1999) and ceased to exist with the introduction of the non-cash EUR. In terms of its use and emission technique, the ECU was similar to the SDR. However, the emission of the ECU, unlike the SDR, was half backed by gold and US dollars. The emission of the ECU, as well as the SDR, was carried out in the form of credit records on the accounts of the central banks of the EMU member countries and, accordingly, did not have samples of monetary units and therefore, like the SDR, was considered as m.d.u.

Electronic money- money that exists in the form of records on "card" accounts in banks and therefore represents a type of non-cash form of money and is used with the help of plastic cards in payments for goods and services.

Element of the monetary system- a separate, legislatively introduced by the state, characteristic and stable for a given monetary system of the country, sign.

Share premium- the same as seigniorage.

Issue of cash- issuance by the country's central bank of banknotes and coins made of base metals into circulation in excess of their quantity that is in circulation.

Issue of non-cash money- the creation of new credit money by commercial banks when lending to their customers with crediting loans to their current accounts.

Offset efficiency- the same as the offset percentage.

Fisher effect- the relationship between the inflation rate and the nominal rate of loan interest.

Absolute advantage- the ability for a country to produce goods at lower costs (volumes of attracted factors of production) compared to other countries (trading partners).

Prepaid expense- the amount of money issued on account of future payments for material assets, work performed and services rendered.

advice- official notice of the bank on the execution of the settlement transaction, sent by one counterparty to another; especially widely used by banks in mutual settlements.

Autarky- policy of voluntary or forced isolation of the country from the world market, economic isolation of the state.

Holdings- 1) assets, property; 2) the client's funds in the bank.

Aggregation- connection of separate units or data into a single indicator. For example, all prices of individual goods and services form one general price level, or all units of output are aggregated into a real net national product.

Market aggregation is the opposite of market segmentation, or a strategy by which a firm treats the entire market as a homogeneous area and standardizes marketing activities.

agio- excess of market rates of banknotes, bills or securities in comparison with their face value.

Acquisition- acquisition of an enterprise by a shareholder or a group of shareholders by buying up all the shares of this enterprise on the stock exchange.

Letter of credit- an instruction to the bank to pay a certain amount to an individual or legal entity upon fulfillment of the conditions specified in the letter of credit; a monetary, nominal document issued by a bank to a person who has deposited a certain amount and who wants to receive it in full or in parts in another city within a certain time.

Assets- 1) property of a natural or legal person; 2) part of the balance sheet.

Acceptance- consent to accept the counterparty's offer to conclude an agreement; consent to payment of the payment request when settling through the bank.

excise tax- a type of indirect tax, mainly on consumer goods, as well as on services. Included in the price of goods or fees for services.

Joint-stock company- an enterprise created on the basis of a voluntary association by citizens and (or) legal entities of their property by issuing shares. Distinguish open and closed joint-stock companies.

Stock- a security that certifies the ownership of a share in the capital of a joint-stock company and gives the right to participate in its profits, and in certain cases (a common share) to participate in the management of the enterprise.

Ordinary share (simple)- a share that gives the right to participate in the management of a joint-stock company and receive a dividend.

Preferred share- a share that does not give the right to vote at a meeting of shareholders, but gives the right to a fixed dividend paid on a priority basis.

Alpari- compliance of the exchange rate of securities or the market rate of currencies with their face value.

Opportunity cost- the cost of producing a good or service, measured in terms of the lost opportunity to engage in the best available alternative activities that require the same time or the same resources.

Depreciation deductions- deductions of a part of the cost of fixed assets to compensate for their depreciation (for full restoration).

Annuities- a type of state long-term loan, on which the creditor annually receives a certain income (rent), established with the expectation of constant repayment of the capital amount of the debt, together with interest on it.

Antitrust policy- government regulation aimed at demonopolizing the economy and preventing the emergence of monopolies.

Rent- the transfer by the owner of his property for a predetermined time for use by another person, who in exchange undertakes to regularly pay the owner certain sums of money, called rent or rent.

Range- a set of goods, products or services, specified by varieties, brands, sizes.

auditors- organizations (officials) checking the state of financial and economic activity of enterprises and associations.

Auction- open auctions, in which the ownership of the property being sold is transferred to the buyer who offered the maximum amount during the auction.

"By-back"- a long-term barter operation, in which the supply of machinery and equipment is carried out on credit with subsequent payment for the products produced with their help.

Balance- a system of indicators that characterizes, on a certain date in monetary terms, the state of the means of production both in composition (asset) and in terms of their sources, intended purpose and terms of return (liability). They are divided into a system of consolidated (payment, trade, settlement, etc.) and balance sheets.

Bank- a financial institution that attracts funds from legal entities and individuals and places them on its own behalf on the terms of repayment, urgency and payment.

commercial bank- a private enterprise providing credit and cash services to enterprises and individuals.

Bank Central- a state bank that manages the entire monetary system of the country and has a monopoly right to issue money; stores temporarily free funds and required reserves of commercial banks.

Bank reserves- funds of commercial banks kept in a special account with the Central Bank, plus bank cash.

Bank interest- "price" of money, payment for the use of money taken on credit.

Banknotes- 1) bank notes, a bill for a banker; 2) paper money issued by the Central Bank.

Bankrupt- an enterprise that is unable to pay off its obligations with creditors; declared insolvent and closed.

Barter- a balanced and valued exchange of goods carried out without the involvement of money.

"Escape from Money"- the desire of people and firms to avoid the accumulation and storage of unstable currency, depreciating money by quickly turning them into material values, i.e. through the purchase of movable and immovable property.

Poverty- the standard of living of the family, at which its income does not allow covering the costs of satisfying even the most basic material needs, i.e. are below the living wage.

Non-cash funds- a form of making cash payments and settlements, in which the physical transfer of banknotes does not occur, but simply entries are made in special books for accounting for monetary transactions.

Unemployment- a socio-economic phenomenon, when a part of the economically active population cannot find a job.

Business- economic activity aimed at making a profit.

Business plan- substantiation of the goals of the new case and determination of ways to achieve them. It is used as the main document for investment justification.

Exchange- the form of the market (institution) in which securities are traded (stock Exchange), goods (commodity exchange), foreign exchange (currency exchange).

stock quote- prices of exchange trading goods or rates of securities registered and published by the quotation commission of the exchange.

Bonitet solvency, the ability of the borrower to repay the loan.

Bonification- 1) a premium on the price of goods whose quality is higher than that provided by the standard; 2) a state subsidy, which allows to reduce the amount of interest on a loan provided to certain categories of borrowers.

Bonds- debt obligations issued by the state treasury, individual institutions and enterprises.

Bonus- remuneration for the rendered commission services. The size of the bonus is determined as a percentage of the value of the sold (exchanged or purchased) goods.

Broker- an exchange intermediary who buys goods on behalf of the client and with his money.

"Bull"- A speculator who buys or keeps previously purchased goods or securities in anticipation of a rise in prices.

Family budget- the structure of all family income and expenses for a certain period of time (month or year).

budget deficit- the amount of excess of government spending over government revenues.

All in- the risk associated with the possibility of either losing everything or gaining a lot.

Gross national product- a macroeconomic indicator that characterizes the volume of national production. It is defined as the sum of market prices of all final products produced in the national economy in a year.

Valorization- an increase in the price of goods, the exchange rate of securities as a result of measures taken by the government.

Currency- 1) the monetary unit of the country; 2) banknotes of foreign states and credit means of circulation and payment, expressed in foreign monetary units (bills, checks, etc.) and used in international settlements.

Exchange rate- the price of the currency of one country, expressed in the currency of another country.

Currency intervention- operations of the Central Bank to buy and sell the currency of their country in order to influence the exchange rate.

Warrant- an additional tool issued together with a security and giving the right to additional benefits (for example, the right to purchase a certain number of ordinary shares of the same issuer after purchasing its bonds).

Voucher- 1) privatization check issued during the privatization process for the acquisition of shares of privatized enterprises; 2) a written certificate, commission, guarantee or recommendation.

Veblen effect- a phenomenon described by the American economist T. Veblen in the book The Theory of the Leisure Class (1899), which occurs when, as a result of a fall in the price of a product, some consumers decide that this is due to a deterioration in its quality and reduce consumption of this product.

bill of exchange- a security (debt receipt, mortgage) containing an unconditional monetary obligation on the payment to a certain person or to the bearer of a bill of a certain amount within a certain period.

Venture companies- knowledge-intensive experimental design organizations, with the help of which risky projects are implemented (in order to maximize profits).

Complementary Products- goods for which there is an inverse relationship between the price of one product and the demand for another, namely: a decrease (increase) in the price of one product leads to an increase (decrease) in demand for another product.

Interchangeable goods- goods that can satisfy the same need; at the same time, a decrease (increase) in the price of one product leads to a decrease (increase) in demand for another of the interchangeable goods.

External effects- the effects of the production or consumption of a good, the impact of which on third parties who are neither buyers nor sellers, is not reflected in any way in the price of this good.

External public debt- state debt on outstanding foreign loans and unpaid interest on them.

Reproduction- continuous renewal production activities on the same scale or on a larger scale.

Secondary market (securities)- a market in which securities are resold after their primary sale, distribution, placement by issuers. Agents secondary market usually are banks and firms specializing in the sale of securities.

Revenue- funds received (received) by an enterprise, firm, entrepreneur from the sale of goods and the provision of services.

Warranty- guarantee; ensuring the fulfillment of obligations. For example, bank guarantee represents the buyer if the seller doubts his solvency.

Hyperinflation- the accelerating growth of inflation, in which the value of money falls so rapidly that they cannot perform their main economic functions - means of payment, and especially a means of storing value (wealth). The formal criterion of hyperinflation was introduced by the American economist F. Kagan, who proposed to consider the beginning of hyperinflation the month in which the price increase for the first time exceeded 50%, and the end - the month preceding the one in which the price increase falls below this critical level and does not reach it again for at least measure during the year.

horizontal merger- merging into one firm or taking under common control two or more enterprises that carry out the same stages of production or produce the same products.

"Hot money"- monetary capital, spontaneously moving from one country to another in order to preserve value or extract speculative excess profits.

State regulation of the market- state intervention in the functioning of market mechanisms, the impact on the economy through administrative (legislative acts and actions of the executive authorities based on them) and economic (monetary and financial, monetary, budgetary and tax) methods and levers.

Government loans- the main form of public credit, which is a credit relationship in which the state acts mainly as a debtor (in this case, the debt is included in the amount of public debt).

Finished products- products of the main or auxiliary workshops, intended for release to the side.

Gradualism- an economic policy aimed at slowly reducing inflation for a long time by managing aggregate demand and without prejudice to employment.

production possibilities frontier- an indicator of the maximum possible volume of output of a certain product or type of service that can be produced in the economy under the existing level of use of available resources and knowledge, as well as for given volumes of production of other goods and services.

Grant- 1) a deed of gift, a document on the transfer of rights; 2) grant, subsidy, scholarship.

G udvil - the conditional value of business ties, the price of accumulated tangible assets, the monetary value of intangible capital (prestige, trademark, experience in business ties, stable clientele). For example, the Coca-Cola trademark is valued at $3 billion, Camel at $2.5 billion, Stolichnaya vodka at $100 million.

Property - 1) property values not directly connected with the land and not attached to it (as opposed to real estate); 2) moving things, money, securities.

Debit - 1) the amount due to be paid or received as a result of economic relations with a legal or natural person; 2) an account of receipts and debts to this institution, organization.

Debtor - an individual or legal entity that has a debt to a certain enterprise, organization, institution, citizen.

Devaluation - official depreciation of the national currency against foreign currencies.

mottos - means of payment in foreign currency intended for international settlements.

Declaration of income- an appropriate statement on the amount and sources of income, filled in by individuals and legal entities.

Decort- a discount from the price of goods provided by the seller to the buyer in case of early payment or due to the fact that the quality of the goods is lower than that stipulated by the contract.

Demonopolization- elimination of state or other monopoly, dictating its conditions to the market.

Dumping- junk export - sale of goods at prices below costs (cost); is carried out, as a rule, in the external market.

money supply- a set of generally accepted means of payment in the economy.

money mechanism- the way in which changes in the money supply affect the economy.

Money market- a market for short-term transactions for lending and borrowing money, bringing together commercial banks, companies and the government.

Denomination- enlargement of the national currency by exchanging, according to the established ratio, old banknotes for new ones in order to streamline monetary circulation, facilitate accounting and settlements in the country.

Money- any generally accepted means of payment that can be exchanged for goods and services and used to pay debts.

Deposit- all types of funds (money, securities, etc.) transferred by their owners for temporary storage to the bank with the right to use this money for lending. Deposits differ poste restante and urgent.

Depression- a very severe recession lasting more than a year. It is characterized by a stagnant state of the economy, low prices, weak demand for goods, mass unemployment, etc.

Gross domestic product deflator- price index for all goods and services produced, used to obtain real gross domestic product. The importance of information and real GDP is explained by the fact that it reflects the physical output of goods and services, and not their monetary value.

Deflation- the process of reducing the general level of prices in the country.

"Cheap money"- cheaper credit as a result of the Central Bank's expansionary credit policy in order to expand lending to the economy.

Decile coefficient- an indicator of the uneven distribution of income between different groups population of the country; is calculated as the ratio of the income of the richest 10% of people to the income of the poorest 10% of people.

Jobbers- dealers of the London Stock Exchange, carrying out operations for the purchase and sale of securities on their own behalf and at their own expense.

Diversification- simultaneous development of many directly unrelated industries; risk reduction strategy by spreading investments among several risky assets.

Dividend- income (profit) received by the owner of shares based on the results of the activities of the joint-stock company.

Disaggio- deviation of the exchange (market) rate of securities or banknotes downwards in comparison with their nominal value; usually expressed as a percentage of face value. The upward deviation of the exchange rate from the nominal value is called screw up.

Dealing- a complex of trade, intermediary and business services.

"Dynamite"- a merchant selling unreliable goods or securities.

Discount - 1) the difference between the price at the moment and the price at the time of redemption or the price of the par value of the security; 2) the difference between prices for the same product with different delivery times.

Discounting- a method of determining the current equivalent of the value of money that will be received or spent in the future. If the discount factor is 10% and the amount due in one year is $110, then that amount is worth $100 today. The discount operation is the inverse of compound interest. The discounting method is widely used to evaluate investment projects when costs and revenues are distributed over time.

Distributor- a company that sells on the basis of bulk purchases from large manufacturing firms.

Product differentiation- the process that takes place when a product sold on the market is not standardized.

Added value is the sum of the firm's sales minus the cost of materials and other intermediate goods used in the production of the goods sold. Value added does not include depreciation.

The household- the most important subject of economic relations; An economic unit that produces and consumes goods and services.

"Dear Money"- 1) an increase in the cost of credit as a result of measures taken by the Central Bank to curb economic growth and regulate inflation; 2) money, the purchasing power of which increases.

Grant- gratuitous financial assistance to compensate for any costs.

Income- the flow of cash and other receipts per unit of time. There are four main forms of income: rent, wages, interest and profit.

Subsidiary- a branch of the parent joint-stock company, which is under the control of the parent company. Control is ensured by buying shares of a subsidiary.

natural monopoly- an industry in which the production of goods or services rendered is concentrated in one firm due to objective (natural or technical) reasons, and this is beneficial to society.

Natural rate of unemployment- the unemployment rate corresponding to the objectively achievable level of full employment in the economy (frictional and structural unemployment).

Market volume- the total effective demand of buyers.

Mortgage- a document on the pledge by the debtor of real estate (land, buildings), giving the creditor the right to sell the pledged at auction if the debt is not paid to him on time.

Law of diminishing marginal productivity- argues that with a greater amount of variable production resource used (assuming that other resources and technologies are unchanged), the marginal product of this resource will most likely decrease.

Wage- the price of equilibrium in the labor market; income in cash or in kind received by an employee.

Overstocking- an excess of goods on the market; excess of supply over demand.

ground rent- 1) part of the surplus product created by workers Agriculture assigned by land owners; 2) the main part of the rent paid to land owners by its tenants.

Earth- a factor of production that is not reproduced, but is naturally available, but in a limited amount.

gold standard- a mechanism for the exchange of national currencies based on the establishment of a fixed weight of gold (gold backing), to which a paper currency of a certain denomination was equated, and the exchange of currencies based on the ratio of the size of such gold backing.

Economic free zone- a special economic zone (free trade zone), limiting a part of the national-state territory, which has special preferential economic conditions for foreign and national entrepreneurs (customs, rental, currency, visa regime benefits, etc.), which creates conditions for development of industry and investment of foreign capital.

Costs- the costs of the firm for the production of goods or services sold during a certain period of time; are equal to the sum of the constants and variable costs. As a rule, the value of costs in terms of accounting different from economic costs.

Alternative costs- the opportunity cost of any resource chosen for the production of a good, equal to its cost under the best of all possible use cases.

accounting costs- the actual consumption of factors of production for the manufacture of a certain amount of products at their purchase prices.

Gross costs- the sum of fixed and variable costs.

Implicit costs- the cost of non-purchasable resources used in production.

Variable costs- costs, the total value of which for a given period directly depends on the volume of production and sales.

fixed costs- costs, the amount of which in a given period does not directly depend on the size and structure of production and sales.

production costs- the cash costs of the enterprise for the means of production consumed in production and the payment of wages.

Average costs- total costs per unit of output.

explicit costs- opportunity costs, which take the form of explicit cash payments to suppliers of factors of production and intermediate products.

consumer surplus is the difference between the maximum amount consumers are willing to pay for a given quantity of a product they want and the amount they actually pay. Measured as the area between the demand curve and the horizontal line at the market price.

Producer Surplus- the total effect of the excess of prices over the value of production costs. Measured as the area between the supply curve and the horizontal line at the market price.

Moral depreciation- partial loss of the value of the elements fixed capital due to the production of more productive or cheaper analogues.

Physical wear- gradual decrease in the effectiveness (value) of the elements fixed capital due to their constant use.

Import- purchase of goods from a foreign counterparty and its import into the country.

Investment- the process of investing public or private capital in various sectors of the economy.

Index- relative indicator characterizing the ratio of socio-economic processes in time or space: prices of individual goods, volumes of various products, cost, etc.

Herfindahl index- an indicator of market concentration, calculated as the sum of the squares of market shares (in percent) of all market entities in its total volume.

Dow Jones is a popular industrial stock market index used on the New York Stock Exchange. It is calculated in dollars and consists of four indicators: the average stock price of 30 industrial corporations, 20 transportation companies, 15 utility companies, and the combined price of all 65 corporations combined.

Price index- an indicator expressing the ratio of prices for goods and services for two different periods of time.

Indexing- automatic adjustment of the amount of payments, taking into account the inflation rate calculated on the basis of the price index.

Indicative planning - non-directive, advisory, orienting planning at the state level.

Endorsement- giro - an endorsement on the reverse side of a security, bill, check, certifying the transfer of rights under this document to another person. The person making the endorsement is called endorser(otherwise - girant).

Engineering- provision of engineering, construction and design services.

Collector- an employee who delivers money from the cash desk of the enterprise to a banking institution.

Collection- a banking operation through which the bank, on behalf of its client, receives, on the basis of settlement documents, the funds due to the enterprise and credits them to its bank account.

Innovation- the process of investing in the economy, providing scientific and technological progress.

Integration- the economic process of interaction between the national economies of two or more states on the basis of cooperation and the international division of labor.

Intensive economic growth- economic growth, in which the volume of production increases through more efficient use of existing factors of production through the use of modern technologies, labor organization, etc.

Inflation- imbalance of supply and demand, manifested in rising prices; an increase in the general level of prices in the economy and an overflow of money circulation channels.

cost inflation- an increase in the general price level as a result of a decrease in aggregate supply due to an increase in wages and prices for raw materials. Accompanied by a decline in real output and employment.

Demand inflation- an increase in the general price level, caused by the fact that the level of aggregate demand exceeds the level of aggregate supply in the economy of a given country. According to the monetarist point of view, excess demand arises from too rapid an increase in money offers.

Infrastructure- a complex of production and non-production industries that serve production and ensure the conditions for the life of society (roads, communications, transport, education, healthcare).

Mortgage- pledge of land or other real estate in order to obtain a loan, called mortgage loan.

Calculation- Calculation of the cost of a unit of production or work performed.

Cadastre- a register containing a list of information about objects of taxation that are subject to direct real taxes. Such objects include land, houses, crafts.

Capital- one of the factors of production; all means of production and resources used to produce goods and services.

Capital fictitious- capital (shares, bonds, mortgage bonds, etc.), which, unlike real capital (in the form of money and equipment), is not a value, but only the right to receive income.

Capital investments- a set of costs of material, labor and financial resources aimed at the expanded reproduction of fixed assets in all sectors of the national economy.

Cartel- one of the forms of monopoly, which is an agreement between enterprises on price, production volume and division of the commodity market.

The quality of life- a general indicator of the comfort of people's lives, taking into account the level of material well-being, the amount of free time for personal needs, the degree of security of citizens, the economic situation in the country and many other factors.

Product quality- a set of technical, economic and aesthetic properties of products that determine its ability to satisfy certain needs in accordance with the purpose.

Quasi-money- non-cash funds held on term and savings deposits in commercial banks.

Quota- share in the production or sale of products, established within the framework of the law or agreements.

Keynesian model- an economic model (named after the English economist John Maynard Keynes), where prices and wages are fixed in the short term. The aggregate supply curve is represented by a horizontal line, with the result that the real gross national product is completely determined by the level of aggregate demand.

classic model- a model of the labor market and aggregate supply, in which the absolute flexibility of wages and prices results in a constant situation of full employment. The aggregate supply curve is a vertical straight line.

Quantity Theory of Money- the theory stating that the change in the price level is based mainly on the dynamics of the nominal money supply.

Clearing- a system of non-cash payments by offsetting mutual claims and obligations.

command economy- an economy in which the entire volume of resources is distributed by the central government.

Commission- 1) an agreement under which one party (commission agent) undertakes, on behalf of the other party (principal), for a fee, to conclude a transaction on its own behalf, but in the interests and at the expense of the principal; also the fee for making such a transaction; 2) in banking practice - payment to a commercial bank for operations carried out on behalf of and at the expense of customers.

limited partnership, limited partnership - a company in which, along with general partners, there are one or more participants-contributors (limited partners) who bear the risk of loss only within the limits of the amounts they have contributed and do not take part in the entrepreneurial activities of the partnership. Limited partners receive a part of the profits of the partnership due to their share in the share capital.

Limited partner- a member of a limited partnership (limited partnership), who bears limited liability for the obligations of the partnership within the limits of his contribution (as opposed to a complementer - a personally liable partner who is liable for the obligations of the company with all his property).

Commerce- trade and trade-intermediary activities, participation in the sale or facilitation of the sale of goods and services; in a broader sense - entrepreneurial activity.

Traveling salesman- a traveling agent of a trading company offering goods to buyers according to the samples, catalogs, etc. he has.

Conversion - 1) transfer of military enterprises to the production of civilian products or vice versa; 2) a change in the initial conditions of government loans, expressed in the repayment of interest, deferred payments, changing the method of repaying a loan, etc. (loan conversion); 3) exchange of one currency for another at the current exchange rate (currency conversion).

Currency convertibility- the ability to freely exchange national currency for a foreign one at the current rate, as well as pay for foreign goods and services in national currency (both within the country and abroad).

Final product- part of the total social product minus intra-production consumption.

Competitiveness- the ability of a product or its manufacturers to win competition in the market with products manufactured by other firms, due to better compliance with the requirements or financial capabilities of buyers.

Competition- rivalry between commodity producers for the best, more economically favorable conditions for the production and sale of goods, for obtaining the highest profit.

Competition is unfair- economic competition, in which non-market forms of competition are used: unfair advertising, dissemination of false information about competitors, illegal use of a trademark, etc.

Competition is imperfect An economic competition in which two or more sellers, with some (limited) control over price, compete for sales.

Non-price competition- economic competition in which competing firms use methods other than changing the selling prices of their products.

The competition is perfect pure - economic competition in a market where many firms sell a standard product and none of them has a sufficient share to control the market and prices.

Consulting- activities of special companies to advise producers and consumers in the field of technological and economic activities.

Consignment- the owner of goods sold abroad through the mediation of a commission agent (consignee).

Consortium- a temporary voluntary agreement between several banks, firms, companies in order to coordinate actions to service a single capital-intensive project.

Smuggling- illegal movement of goods and other valuables across the state border.

counterparty- each of the parties in the contract in relation to each other, incurring certain obligations.

Contract- a legally binding agreement, an agreement between two or more participants with mutual obligations to supply and purchase goods, perform certain work.

Controlling- accounting and control at the enterprise.

Controlling stake- share of shares, giving the right to manage a joint-stock company.

Concern- diversified joint-stock company; a form of association of many enterprises from different industries, trade, transport, services and financial institutions.

Concession- 1) an agreement or an agreement on the commissioning by the state of domestic or foreign firms of industrial enterprises or land plots with the right to extract minerals, build structures, etc.; 2) the enterprise itself, organized on the basis of such an agreement.

Conjuncture- the economic situation that has temporarily developed on the market, characterized by an appropriate relationship between supply and demand, price levels, commodity stocks, a portfolio of orders for the industry, etc.

cooperative- an enterprise (firm) created on the terms of voluntary association of citizens of their property. A member of a cooperative takes personal labor participation in its activities.

Corruption- merging of state structures with the criminal world, venality and bribery of political and public figures as well as government officials.

Indirect taxes- taxes on goods and services, established in the form of a premium to the price and paid by producers. The final payer is the consumer, who purchases goods at higher prices, including indirect tax.

Quoted- 1) have circulation on the stock exchange; 2) have a certain price (about currency, securities, goods).

Credit- a loan in cash or commodity form on terms of repayment and usually with the payment of interest.

Laffer curve- a curve showing the relationship between tax rates and the volume of tax revenues to the state budget. Allows you to identify such a tax rate (from 0 to 100%) at which tax revenues reach a maximum. Named after the American economist.

Lorenz curve- a curve illustrating the distribution of income in the economy. The total percentage of families (recipients of income) is measured along the abscissa, and the total percentage of income - along the ordinate. Named after the American economist.

Production Possibility Curve- a curve showing the maximum quantity of any commodity that can be arbitrary in some economic system, given the output of all other goods, limited resources and a given technology.

Cross course- the ratio between two currencies, which is determined on the basis of the exchange rate of these currencies in relation to any third currency.

Share price- the selling price of a share, determined by the ratio of supply and demand and depending on the amount of dividends, as well as on the stability of the position and commercial prospects of the joint-stock company.

Courtage- remuneration to the broker for mediation in the exchange transaction.

lag- a gap in time between two phenomena or processes that are in a causal relationship.

Phillips curve- curve describing the relationship between the unemployment rate (along the abscissa) and the annual growth rate of the price level (along the ordinate). Named after the English economist.

label- any product label that indicates the country where the product is made, the manufacturer, its trademark or trade mark, etc.

Liberalization(economy, prices) - expansion of freedom of economic actions of economic entities, removal of restrictions on economic activity, emancipation of entrepreneurship. Price liberalization - the transition from state-appointed prices (state pricing) to a system of free market prices (market pricing).

Leasing- leasing for a long period of fixed assets. Leasing companies buy equipment to rent it out. This is a relatively new way of financing investments, based on the retention of ownership of the landlord.

Liquidity- the ability of material resources, other resources to quickly turn into money; the ability of the enterprise to pay its obligations on time, to turn the assets of the balance sheet into money to pay for liabilities.

Listing- list of securities admitted to circulation on the stock exchange.

License- a permit issued by state or local authorities to conduct certain economic activities.

Lloyd- English insurance association, one of the largest monopolies in Great Britain.

Lobby, lobbying- private or public organizations, influencing in the interests of certain groups of the population on decision-making by the legislative or executive power.

Logo- a specially designed original inscription of the full or abbreviated name of the company.

Pawnshop- a credit organization that accepts valuable things (movable property) from citizens as a pledge and issues loans to them for a period and for an amount that is only a part of the value of the pledged thing.

Lot- the term of auction trade, meaning a unit or batch of goods offered for sale.

lumpen- a person deprived of any (even movable) property.

Broker- an individual or legal entity acting as an intermediary in the sale and purchase of goods and securities. The broker can carry out transactions both at his own expense and at the expense of the client.

Macroeconomics- a branch of economic theory that studies the economy as a whole.

Margin- bank profit, defined as the difference between the amount of interest charged and paid by the bank; a term also used in exchange and trading practice to refer to the difference between prices and rates when concluding transactions.

Marketing- the general name of a group of methods that allow you to more accurately determine the real needs of consumers for certain goods, as well as influence the size of demand for these goods.

"Bear"- a speculator who believes that prices will soon go down, and sells contracts (plays on the fall).

Management- system of organization and management of the enterprise; a section of economic science that studies the theory and practice of organizing and managing production and sales of products.

Mercantilists- scientists-economists, whose scientific school was formed in the 15th century. and dominated for almost two centuries. Mercantilists considered wealth only that which could be turned into money. They believed that the main area where wealth is born is the sphere of circulation and, in particular, trade. In their opinion, the state should strive to ensure that as much gold and silver as possible settle in the country: they saw this as the main source of the nation's power.

Microeconomics- a section of economic theory that studies economic processes at the individual enterprise level.

Minimal salary- the lowest wage rate established by law at enterprises of any form of ownership.

Economic and mathematical model- an equation or a system of equations that reflects the basic properties of real objects, processes, systems. With its help, a researcher can conduct computational experiments on complex economic systems, on which a direct full-scale experiment is impossible (or undesirable).

Monetarism- an economic theory based on the decisive role of the money supply in circulation in the implementation of the policy of stabilizing the economy, its functioning and development.

monetary rule, monetary rule - a rule formulated by supporters of monetarism, according to which the amount of money in circulation should increase annually at a rate equal to the potential growth rate of real GDP.

Monitoring- a system of measures that allow you to continuously monitor the state of a particular object, system.

Monopoly- an enterprise that has a dominant position in the market, which allows it to determine prices.

Monopsony- a type of market structure in which there is a monopoly of a single buyer of a particular type of product.

Moratorium- deferment of payments on debt obligations for a certain period or until the relevant condition is met.

Cash- money used in cash circulation. In the modern economy, their volume is equal to the sum of coins and banknotes in the hands of the population and non-banking institutions.

Tax- a mandatory payment, a fee levied by the state or local authorities from citizens (individuals) or enterprises (legal entities) on the basis of special legislation.

inflationary tax- a tax implicitly paid by consumers in an economic situation where the government pursues a policy that causes inflation. Such a tax is preferable to the government, as it is less visible than an outright increase in tax rates.

Value Added Tax (VAT)- tax, which is a withdrawal to the budget of a part of the increase in value created in the process of performing work. The taxable amount is established as the difference between the goods sold and purchased by the enterprise.

C.O.D- a method of payment for the cargo (or postal item), in which the sender instructs the transport organization (or post office) to release the cargo (postal item) to the addressee only on condition that the declared value of the cargo is paid.

Natural economy- a type of economy in which products are produced only for own consumption, and not for sale or exchange.

Nationalization- the transfer of property from private ownership to state ownership.

National income is a macroeconomic indicator that characterizes the sum of incomes of all owners of factors of production. It is determined by subtracting from the net national product the amount of indirect taxes on business.

inferior commodity A good for which demand falls as consumer income rises.

Denomination - 1) face value indicated on securities, paper money and coins; 2) the price of the goods indicated in the price list or on the goods themselves.

Rate of return- the balance sheet profit of the company, divided by the amount of equity, expressed as a percentage.

Normal profit- the concept used to denote the opportunity cost of the owner of capital; when calculating economic profit, it is included in costs.

Normative economic theory- that part of economics that deals with judgments about whether certain economic conditions and policies are good or bad.

know-how- a set of technical, technological, commercial and other knowledge.

Bond- a type of securities issued by the state and joint-stock companies as a debt obligation with domestic loan. Entitles its owner to the payment of a nominal amount within a certain period and the agreed annual interest.

General equilibrium- a stable state of a competitive economy, in which consumers maximize the value of the utility function, and competing producers maximize their profits at prices that ensure the equality of supply and demand.

public good- a good that, after consumption by one person, is still available for consumption by other people (for example, national defense).

joint stock company- an enterprise whose authorized capital is divided into a certain number of shares. Shareholders bear the risk of loss only to the extent of the value of their shares.

Closed joint-stock company- a joint stock company whose shares are distributed only among its founders.

Open Joint Stock Company- a joint-stock company that has the right to conduct an open subscription and sale of shares issued by it.

Additional Liability Company- a company, the participants of which are liable in the same for all multiples of the value of their contributions.

Limited Liability Company- a company that has an statutory fund divided into shares, the amount of which is determined by the constituent documents, and is liable for obligations only within the value of its property. All the property of the company belongs to its members, and it is in many ways similar to a joint-stock company.

Overbot- a jump in prices for a certain product due to large volumes of its purchases.

Oversold- a sharp drop in the price of a product due to the large volumes of its entry into the market.

Oligarchy- political and economic dominance of a small group, as well as this group itself. The financial oligarchy is a group of the largest owners of industrial and banking monopolies, which actually dominate the economic and political life of the country.

Oligopoly- a type of market structure of the industry of the economy of developed countries, in which most of the sales are carried out by several firms, each of which is large enough to influence the level of market prices by its actions.

Open market operations- an instrument of monetary policy of the Central Bank, through which the purchase or sale of government treasury bills and bonds is carried out to control the money supply in the country.

Wholesale- transactions for the sale of goods in large quantities, when the buyer is the owner of a wholesale trading company that supplies goods to shops or manufacturing companies.

Option- a deal with a condition - a contract under which one of the parties acquires the right (but not the obligation) to buy something in the future at a price determined on the day the contract is signed.

Offer- a formal offer to a certain person to conclude a deal, indicating all the conditions necessary for its conclusion. The person making the offer is called offeror.

Offshore centers- States that provide benefits in the field of financial and credit operations in order to attract foreign capital.

"Public Relations"- diverse activities to form a favorable public opinion about the company, product, service, etc.

Publicity- 1) fame, popularity, advertising; 2) dissemination of information about the company and its products in order to stimulate demand.

Share- a contribution paid by organizations or individuals upon joining a partnership, cooperative or other unit enterprise.

Parity(currencies) - the ratio of the purchasing power of various national monetary units, calculated on the basis of a comparison of the amounts of money needed to purchase the same set of goods in each country.

Passive- a set of debts and obligations of the enterprise.

Patent - 1) certificate certifying authorship and exclusive right to the invention; 2) a document granting any right or privilege (for example, the right to engage in trade).

Pauperism- Poverty (mass) of the working masses, lack of necessary means of subsistence; is a consequence of the increasing exploitation of workers and unemployment.

lump sum- taken in bulk; general, without differentiation of constituent elements (tax, duty, payment, etc.).

penalty- type of forfeit, sanction for non-fulfillment of monetary contractual obligations, which is charged for each day of delay as a percentage of the amount payable.

variable costs- costs that depend on the quantity of products produced (costs of raw materials, materials, wages, etc.).

"Pyramid"- a method of profit used by financial companies. The funds received by the company from the sale of securities are partially paid out in the form of dividends to those persons who purchased the securities earlier, and are also directed to large-scale advertising and to the income of the financial company.

Floating exchange rates - a regime of freely fluctuating exchange rates based on the use of the market mechanism of currency regulation; one of the structural principles of the modern world monetary system.

Positive economic theory is that part of economic science that studies facts and the relationships between them.

Positioning - the development of a marketing and advertising mix that provides the proposed product with a clearly distinct and competitive position in the market, as well as in the minds of target consumers.

Purchasing power - the ability of a monetary unit to be exchanged for a certain amount of goods.

Dear money policy - A central bank's monetary policy in which it sets high interest rates and sells government bonds on the open market to reduce the money supply. It is carried out in conditions of inflation.

Full employment - the level of employment of labor resources, characterized by the absence cyclical unemployment. It is achieved if only frictional and structural forms of unemployment take place in the economy.

Fixed costs - part of gross costs that do not depend on the volume of production.

Potential national income is the amount of real national income that could be produced if all factors of production were fully employed.

Consumer basket - a set of food and non-food products, housing and communal services, cultural and educational, medical and recreational and other paid services necessary to meet the physiological needs of a person. The consumer basket is estimated at current prices for goods and tariffs for services. The value of the minimum consumer basket is determined by the set of goods and services necessary for the reproduction of the labor force of an unskilled worker and his dependents.

Needs are those goods and services that people would like to have if they did not have to pay for them or for the purchase of which there would be enough money.

Duty - one of the types of consumption tax levied on those individuals or legal entities that enter into economic relations with the state or among themselves.

The limiting value is an increment (increase) in the value of an economic indicator, due to an increase per unit of the factor from which this indicator depends.

Marginal cost is the cost associated with producing an additional unit of output.

Marginal revenue is the extra revenue that a firm earns when it increases its sales by one unit.

Marginal product is the additional product or output created by an additional unit of any factor of production, provided that other factors of production remain constant.

Entrepreneurial activity is an independent initiative activity of citizens aimed at making a profit through the effective use of production factors.

An enterprise is an independent production and economic unit created for the purpose of making a profit; in market conditions, the company is called firm.

Price-list- a price guide for products, goods or services.

Press release- information about a product, company or reseller, distributed for possible publication in the press.

Surplus value- part of the value of goods produced at enterprises, which is created by the unpaid labor of hired workers.

Profit- economic value, defined as the difference between total revenue and total costs; excess of income over expenses.

Profit is normal- remuneration to the entrepreneur, sufficient to maintain activities in the chosen direction.

Economic profit- the difference between gross income (gross revenue) and economic costs output of this product.

Privatization- the process of transferring state and municipal property to private ownership for a fee or free of charge.

Living wage- the level of income necessary for a person to acquire a quantity of food not lower than physiological norms, as well as to satisfy, at least at the lowest level, his needs for clothing, footwear, housing, transport services, sanitation and hygiene items. It is calculated based on the consumer basket for various groups of the population.

Labor productivity- indicator of productivity, labor efficiency; characterizes the quantity of products produced per unit of time, or the time spent on the production of a unit of output.

Prolongation- extension of the term of the contract, agreement, loans, etc.

Proportional tax- a tax, the average rate of which remains unchanged with an increase or decrease in the income of the taxpayer.

Protectionism- foreign trade policy of the government, aimed at increasing barriers to trade with other countries. The instruments of protectionism are tariffs and quotas, which are introduced to protect domestic producers from foreign competition.

Percent(loan) - payment for a loan; price for the use of borrowed funds.

Direct taxes- taxes levied directly on the income or property of the taxpayer.

A pool is an association of enterprises of a temporary nature.

Paragraph- unit of measure when comparing relative values, expressed as a percentage. For example, in the base year, the national income growth rate was 2.5%, and in the reporting year it decreased to 1.4%, i.e. by 1.1 points.

Split pile- specialization, differentiation of labor activity, leading to the emergence and existence of its various types.

rambours- 1) payment of debt through a third party; 2) in international trade- payment for the purchased goods through the bank.

Rentier- a person living on rent - on interest from a loan of capital or on income from securities.

Future expenses- costs incurred by enterprises in the reporting period, but subject to inclusion in the cost of production in subsequent periods.

Real income- the number of goods and services that can be purchased with their nominal income.

Revaluation- an increase in the exchange rate of a monetary unit in relation to the currencies of other countries, carried out by the state in an official manner.

Regressive taxation- a taxation system in which the average tax rate decreases (increases) as the taxpayer's income increases (decreases).

Reinvestment- repeated, additional investments of funds received in the form of income from investment operations.

renovation- the process of updating the morally and physically worn-out fixed assets.

Rent- income received from land, capital, property and does not require entrepreneurial activity from its recipients. The most common land rent.

Profitability- one of the main performance indicators of the enterprise. It is calculated as the ratio of profit to the cost of production.

report- an exchange futures transaction for the sale of securities (or currency) to a bank with the obligation of subsequent redemption after a certain period at a new, higher rate; the difference between the sale and purchase price is also called the report.

Restriction- 1) restriction of production, sale and export in order to inflate the prices of goods and obtain high profit; 2) limiting the credits of the Central Bank to the commercial banks of the country.

Refinancing of the public debt- payment by the government to the owners of maturing government securities of money received from the sale of new securities, or the exchange of redeemed securities for new ones.

Recession- a decline in production or a slowdown in its growth rates for two or more quarters in a row.

Recipient- a natural, legal person or state receiving any payment. The term is used, as a rule, in relation to countries that are objects of foreign investment (host countries).

Realtor- Real estate agent.

Royalty- a form of license fee, carried out as periodic percentage deductions, most often from the cost of products manufactured under a license.

Market- the sphere of exchange of goods and services between sellers and buyers.

Buyer's market- a market situation characterized by the fact that the supply (manufacturers and sellers) of the goods exceeds the demand for it at current prices.

seller's market- a market situation characterized by the fact that the demand for a product exceeds its supply.

Market economy- a way of cooperation of people with each other in the sphere of the economy, based on a commodity economy and assuming for everyone the freedom to choose a partner in the transaction and the freedom to set prices for their goods.

Racket- extortion of state or personal property, money through threats, blackmail and violence.

Balance- the difference between cash receipts and expenditures for a certain period of time.

Swap- an operation to exchange the national currency for a foreign one with the obligation to exchange it back after a certain period of time.

Cost price- the amount of costs (in monetary terms) for the production and marketing of a unit of production or the entire volume of its output, for the performance of work and the provision of services.

Market segment- a set of consumers who react in the same way to the same product (service).

Selenge- one of the varieties of leasing. In this case, money is rented without changing ownership. Only the profit received from the operation is taxed, and not the entire amount (unlike a loan).

Certificate- 1) a document certifying a particular fact; 2) bonds of special government loans, as well as bearer securities issued by the bank.

Syndicate- one of the forms of monopoly - an association of homogeneous enterprises created for the purpose of marketing products through a common sales office, organized in the form of a special trading partnership, with which each of the participants in the syndicate concludes an agreement on the sale of their products with the same terms.

System of National Accounts- a set of interrelated balance tables designed to calculate the volume of consumption income, accumulation and capital expenditures.

Own- the right of a citizen, firm or state recognized by society and protected by law to own, use and dispose of any property or economic resource.

Aggregate supply- the sum of individual offers of many goods and services in the economy, measured by the volume of the national product.

Aggregate demand- the sum of individual surveys of all consumers in the economy for the entire volume of national production, characterizes the total costs in the economy.

Aggregate demand for money- the total amount of cash held by economic entities for transactions and for the preservation of wealth (savings). Depends on the level of national income and the interest rate.

Social market economy- a social structure in which the state actively supports the development of free competition, contributes to the easing of conflicts between employees and employers, and also implements extensive programs to support socially unprotected groups of citizens.

Specialization- concentration of production in the hands of the most efficient worker (firm).

Spot- a type of transaction for a cash commodity or currency, involving immediate payment and delivery.

Demand- the solvent need for the quantity of goods that people want and can buy at a given price.

Demand for money to make transactions, transaction demand - the amount of cash that households and firms want to have for use as a medium of exchange and which is determined by the level of nominal GDP.

Precautionary demand for money- the amount of money that people keep in cash for unexpected expenses. Depends on income level.

Asset demand for money speculative demand - the amount of money that people want to keep as savings to benefit from transactions with financial and real assets. It depends on the level of the interest rate.

Average propensity to consume is the share of disposable income that households spend on consumption.

Average propensity to save is the share of disposable income that households save.

Demand is elastic A demand at which an increase in the price of a good causes a decrease in the quantity demanded so that buyers' total spending on the good decreases.

Demand is inelastic A demand at which an increase in the price of a good causes a decrease in the quantity demanded so that buyers' total spending on the good increases.

Comparative Advantage- advantages of the country in the production of goods, due to lower opportunity costs compared to other countries.

tax rate- the amount of tax per unit of taxation.

Interest rate- the amount of payment for the loaned cash and material resources paid by the borrower to the lender.

Stagnation- stagnation in all economic activity (in production, trade, etc.).

Stagflation- the state of the country's economy, characterized by stagnation with the simultaneous development of inflationary trends.

Insurance- a form of accumulation of funds and a reduction in the risk of expenses in the event of events undesirable for a person or a company, based on the assumption by an insurance company of the risk from economic operations.

string- a set of lots at the auction, formed by goods with similar quality and having a common representative sample.

Structural crisis- imbalances covering two or more sectors of the economy and leading to structural unemployment.

Subvention- type of state financial assistance to local authorities; unlike a grant, it is provided to finance a specific event and is subject to return in case of violation of its intended use.

Subsidy- non-refundable state monetary assistance to producers of goods, designed to stabilize prices for their goods or help them avoid ruin and continue their activities.

Consumer Sovereignty- the right of owners of any types of resources (land, real estate, labor, money) to independently make decisions related to the disposal of these resources and their use.

Producer Sovereignty- the right of a citizen or company to independently determine what and in what quantity they will produce from existing at their resources, as well as to whom and at what prices they will sell manufactured goods.

Customs- a government agency that controls the import and export of all goods passing through the border of the country, including luggage, postal items and all cargo, including transit.

customs duty- tax on goods passing through the border. Distinguish imported and export customs duties.

customs tariff- a list of customs duties systematized by groups of goods.

Bonus- remuneration paid as a percentage of profits to directors and senior employees of joint-stock companies, banks, insurance companies.

Targeting- setting targets for regulating the growth of money supply in circulation.

Rate- a system of rates that determines the amount of payment for production and non-production services.

Thesaurus- accumulation (folding) of paper money by the population. The hoarding of gold in the broadest sense means the creation of the gold reserves of countries by central banks.

Rate of increase- the ratio of the increase in the value of the economic indicator to its initial level.

Growth rate- the ratio of the value of the economic indicator at a given time to its initial value, taken as the reference base.

trend (trend)- sustainable properties inherent in the economy of the country, enterprises. On the basis of the identified development trends, it is possible to draw conclusions about the course of economic processes in the future, that is, to carry out forecasting.

Tender- proposal for bidding, supply of goods, construction of facilities, performance of other works. Firms that receive a tender form fill it out with their prices and other conditions. As a result of comparing the received documents, the organizers of the auction select the best option and conclude an appropriate contract for the performance of work with its applicant.

Shadow economy- conditional name of economic processes not controlled by the state. The shadow economy includes: a) criminogenic, illegal activities, b) activities hidden from the tax system of the state, c) activities that are not subject to accounting due to their personal or family nature or the absence of meters.

Product- everything that can satisfy the need and is offered to the market for the purpose of commodity exchange.

full partnership- a commercial organization whose participants (general partners) are engaged in entrepreneurial activities and are liable for their property.

commodity economy- a way of organizing the economic life of a society in which people specialize in certain activities in order to produce goods or services for exchange with each other and receive benefits from this.

Bargaining- a competitive form of procurement (transaction), in which the buyer announces a competition for sellers.

Transaction costs- economic costs due to the process of concluding transactions, contracts. These include, for example, the costs of collecting information about prices, consumer preferences and competitors' intentions, etc.

Transfer- payments (expenditures) of the state that do not lead to an increase in the national product and are carried out in the form of social security payments.

Trust- trust management.

Draft- bill of exchange - a written order of the creditor (drawer) to the borrower (drawee) to pay a certain amount of money to a third party - the holder of the bill (remitter).

Trust- one of the forms of monopoly, the association of enterprises, firms, in which the enterprises included in it lose their independence and are subject to a single management.

Lesion- loss of material and financial resources, loss or damage to property caused by various reasons.

accelerated depreciation- the procedure in which the government allows depreciation to be written off on a scale that significantly exceeds the actual depreciation of fixed capital; essentially means a tax subsidy for entrepreneurship.

A service is an intangible good that has value; is of a commercial nature, produced by doctors, lawyers, banks, financial companies, etc.

Authorized capital (fund) - funds that are transferred by the founders to the ownership of the organization they created, which allows it to start its activities.

Accounting of bills - a banking operation consisting in the purchase by a bank (as well as other credit institutions or a broker specializing in such operations) of bills before the expiration of the payment period on them.

The discount rate of interest is the rate of interest at which the central bank provides resources to commercial banks.

Factoring is one of the types of trade and commission transactions, when a bank or firm buys from its client the right to receive money from its debtor.

Physiocrats - French economists of the XVIII century. (Francois Quesnay and others), who believed that the only source of wealth is nature. Unlike the mercantilists, they transferred the subject of study of economic science from the sphere of circulation to the sphere of production, thereby laying the foundation for a scientific analysis of the reproduction of the social product under capitalism.

Phillips curve - the relationship between unemployment and inflation, consisting in the fact that inflation can be high only when unemployment is low, and an increase in unemployment leads to a slowdown in inflation.

Finance - the system of formation, distribution and use of funds of funds (financial resources), as well as the totality of funds at the disposal of the enterprise.

The firm is the main economic agent market economy, an enterprise (organization) engaged in entrepreneurial activity; production association of homogeneous or related enterprises.

Fiscal policy - a set of financial measures of the state to regulate government spending and revenues, one of the most important levers of state regulation of the economy.

Forward (urgent) transaction - a transaction with the delivery of the purchase and sale object to the buyer after a certain period, i.e. in future. On the commodity exchange, a forward transaction, unlike a futures transaction, assumes the presence of actually sold (bought) goods.

Force majeure is the occurrence of extraordinary and inevitable circumstances that cannot be foreseen and which exempt from property liability for failure to comply with the terms of the contract (earthquakes, floods, war, etc.).

Freight - 1) payment to the owner of vehicles for the carriage of goods by sea or air or passengers; 2) cargo carried on a chartered vessel, as well as such transportation itself.

Frictional unemployment is unemployment associated with the unemployment of an employee during the transition from one job to another.

Free trade is a policy of liberalization of foreign trade in order to create the most favorable conditions for it.

Franchising (franchising) is a contract between a company and a dealer (an organization or a person engaged in sales), which determines the exclusive right of the latter to operate in a certain territory for a specified time and in a prescribed form.

Futures - an agreement on the supply and payment of goods by a certain date at a price agreed upon at the time of the transaction, and not at the time of execution of the contract.

Hairing- medium-term lease of machinery and equipment without transferring ownership of the goods to the lessee.

Hedging- foreign exchange risk insurance operations in case of unfavorable price changes under transactions involving the supply of goods in the future. Hedging is done by counter purchases (sales) of futures contracts.

Holding- a company whose assets include controlling stakes in other enterprises (the latter become subsidiaries of the holding company).

Price- the amount of money paid per unit of goods; the value of a commodity expressed in money.

Securities- documents certifying the ownership of their owner to any property or money. Securities include: stocks, bonds; checks, bills, certificates, etc.

Price discrimination- the practice of setting different prices for different units of the same product, not justified by any differences in costs.

Price elasticity- a concept that characterizes the intensity of the response of supply and demand to price changes.

Price leadership- a situation where the increase or decrease in prices by the dominant firm in the oligopoly, called the price leader, is supported by all or most of the firms in the market.

Pricing- the process of setting prices for the company's products.

central bank- the main bank of the country, whose main function is to control the money supply in the country's economy.

economic cycle- Recurring in the economy of any country, ups and downs in the development of production and the level of business activity.

Cyclical unemployment- Unemployment caused by the economic downturn.

Charter- an agreement between the shipowner and the charterer for the lease of the entire ship or part of it for a specific voyage or period.

Check- a monetary document confirming the written order of the drawer of the check to another person (check holder) at the expense of money previously transferred by the check drawer to the payer.

Net national product (NNP)- an indicator calculated as the difference between the gross national product and depreciation charges.

Net profit- part of the profit remaining at the disposal of a commercial firm after paying taxes and other obligatory payments.

Net export- the difference between exports and imports.

Strikebreaker- A person who refuses to go on strike or is hired by a firm when its workers are on strike.

Econometrics (econometrics)- one of the directions of economic and mathematical methods of analysis. Econometrics combines theoretical-economic, mathematical and statistical approaches to an object in one study and brings the results of the analysis to obtain specific numerical results.

Economy - 1) all types of human activities that allow them to provide themselves with material living conditions; 2) the science of the efficient use of limited economic benefits (resources) in order to maximize the satisfaction of people's needs.

Economic policy- measures taken by the state in the management of the economy to achieve certain economic and social goals.

economic profit- the amount of money that remains at the disposal of the company after the repayment of its external obligations and the deduction by the entrepreneur (owner) at his disposal of normal profit.

economic system- a set of organizational mechanisms by which limited resources are allocated in order to meet the needs of people.

Economic mechanisms- ways and forms of uniting the efforts of people in solving the problems of ensuring the growth of their well-being.

The economic growth- change in the results of the functioning of the economy over time. Distinguish between extensive and intensive economic growth.

Economic Good- a good, the possible scale of use of which is limited due to the insufficiency of the quantity of this product to meet the needs of everyone and the receipt of which requires certain efforts on the part of people.

Export - 1) sale to other countries of goods produced by branches of the domestic economy; 2) the total quantity or value of exported goods.

Extensive economic growth- economic growth, in which an increase in the volume of production of material goods and services is achieved through the use of a larger number of production factors (an alternative to intensive growth through the efficient use of existing production factors).

Elasticity- the intensity of the reaction of demand or supply to price changes.

Embargo- a complete ban on trade relations with any state or a ban on the import (export) of certain goods to a particular country.

Emission- issuance of money or securities into circulation; carried out by the state or under its control.

Issuer- the institution or enterprise producing the issue.

income effect- the share of the change in the magnitude of the demand for a cheaper product, caused by a corresponding increase in real income.

Placement effect- that part of the increase in the magnitude of demand for a cheaper product, which was formed due to the substitution (replacement) by a less expensive good of other goods that have now become relatively more expensive.

scale effect- an economic phenomenon consisting in the fact that with an increase in the scale of production in one firm, the cost per unit of goods decreases.

Efficiency- the ratio between the results and the costs incurred to achieve these results.

Entity- an organization, firm, corporation that meets certain criteria established by the legislation of the respective country.

Explicit costs- cash payments of enterprises, firms to suppliers of factors of production, production resources, subject to direct cash payment.

"Pit"- a section of the exchange premises, the floor level of which is lower than in the entire trading floor. "Pit" is a place where it is allowed to conclude exchange transactions for members of the exchange; this place is also called the exchange ring, the ring, the floor.

Fair- a regularly, periodically organized market that operates in a certain place, at a set time, as well as a seasonal sale of one or more types of goods.

Abstraction- a method of scientific research, excluding from the analysis everything accidental (private, secondary) and finding the essential, constant in the object under study.
Accelerator- coefficient opposite to the multiplier; characterizes the impact of the growth of national income on the growth of investment (see Multiplier).
budget deficit- the excess of government spending over its revenues.
State regulation of the economy- state intervention in economic processes by influencing the functioning of market mechanisms by administrative (legislative), economic (currency-financial, monetary, budgetary-tax, etc.) methods and levers.
Demonopolization- elimination of state or other monopoly, dictating its conditions to the market.
"Smith's Dogma"- assessment of the theory of reproduction by A. Marx due to the fact that Smith's "price of the annual product of labor" is reduced entirely to income, i.e. eliminates the accumulation associated with the need to resume the reproduction process and expand its scale.
"The Iron Law of Wages"- follows from the theory of population of T.R. Malthus and means that due to the natural growth of the population (respectively, the outpacing increase in the supply of labor) and the decreasing fertility of the land, the level of wages in society allegedly will not be able to grow, invariably remaining at a low level.
"Clark's Law"- assessment of the concept of J. B. Clark on the distribution of income based on the principles of marginal analysis of the prices of production factors; according to this "law", the incentive to increase a factor of production is exhausted as the price of this factor begins to exceed the possible income of the entrepreneur.
"Say's Law"- the concept of J.B. Say about the unimpeded and complete implementation of the social product, i.e. crisis-free economic growth; in accordance with this “law”, when society achieves and observes the principles of “laissez faire”, production (supply) will generate adequate consumption (demand), i.e. the production of goods and services necessarily generates income for which these goods and services are freely sold due to flexible and free pricing in the market.
"Gossen's Law"- the main theoretical principles of marginalism, one of the predecessors of which was G. Gossen; there are two "Gossen's laws", of which the first says that with an increase in the availability of a given good, its marginal utility decreases, and in accordance with the second, the optimal structure of consumption (demand) is achieved when the marginal utilities of all consumed goods are equal.
institutionalism- one of the modern directions of economic thought, which was formed in the 20-30s. 20th century as an alternative to the neoclassical direction of economic thought; its main feature is the study of the entire set of socio-economic factors (institutions) considered in interconnection and interdependence and in a historical context, as well as the idea of social control of society over the economy.
Keynesianism- economic doctrine of the necessity and importance of state regulation of the economy through the widespread use by the state of fiscal, monetary policy and other active measures to influence the market mechanism.
Classical political economy- the direction of economic thought (the period from the end of the 18th to the second half of the 19th century), whose representatives debunked the protectionist ideas of mercantilism and laid the scientific basis for methodological and theoretical studies of market economic relations; the main feature of the direction is the propaganda of the ideas of "pure" economic theory and the expediency of "full laissez faire", i.e. absolute non-interference of the state in business life and the mechanism of a self-regulating economy.
Quantity Theory of Money- a theory that proves:
a) according to the orthodox version of the "classics", the dependence of changes in prices for goods solely on the amount of money in circulation;
b) according to the “neoclassics”, the possibility of adjusting prices for goods due to the cost of monetary material, the variable level of the velocity of money circulation and the amount of commodity mass, and also taking into account the degree of liquidity of money.
Competition is monopolistic- a market situation in which the degree of increased interchangeability of competing products, i.e. “product differentiation” allows the seller to control the level of supply and price and achieve an absolute monopoly on his own product, but at the same time he (the seller) continues to be subjected to competition from other sellers with more or less imperfect substitutes.
Competition is imperfect- a market situation in which a small number of large producers (sellers) get the opportunity to influence the level of the market price.
perfect competition(free, pure or complete) - a market situation with many sellers and buyers of homogeneous products that cannot influence the price level in the market.
"Marshall's Cross"- a graphic representation of the intersection of the demand curve and the supply curve, at the point of intersection of which an equilibrium is established between them, as well as an equilibrium, i.e. stable price.
"Phillips Curve"- an empirical curve that characterizes the relationship between the annual percentage change in wages in monetary terms and the level (share) of unemployment.
"Indifference Curves"- empirical curves reflecting the conservation of the total utilities of consumed goods in various combinations of their combinations and the preference for some combinations over others.
Liquidity- the ability of material resources, other resources to quickly turn into money; the ability of an enterprise to pay its obligations on time, to turn balance sheet assets into money.
Macroeconomics- the economy as a whole or its most important components; a branch of economic theory that studies the economy as a whole or its main components.
marginalism(marginal economic theory) - a generalization of ideas and concepts, which is based on the study of marginal economic values as interrelated phenomena of the economic system at the micro and macro levels.
"Margin Revolution"- occurred in the last third of the XIX century. transition from the values of the "classical school" to the values (theoretical and methodological principles) of marginalism.
Mercantilism- the direction of economic thought (the period of the 16th - 18th centuries), whose representatives identified the wealth of the country with money and considered it as the most important means of economic growth, and saw the source of wealth in foreign trade, in ensuring an active trade balance; the main feature of the direction is the propaganda of the ideas of the protectionist economic policy of the state, i.e. his participation in the management of the economic system.
metal money theory- a theory that interprets the conditionality of the value of money by the weight of a coin to be minted by the state.
Microeconomics- a section of economic theory that studies economic units, such as firms, any individual economic objects or phenomena.
Monetarism- an economic theory based on the decisive role of the money supply in circulation in the implementation of the policy of stabilizing the economy, its functioning and development.
Monopoly- an enterprise or group of enterprises that has a dominant position in the market, which allows them to control and determine prices; a form of market controlled by one or more firms.
Monopoly price- the type of price set by the monopoly. Depending on the goals, a monopoly can set monopolistically high and monopolistically low prices.
Monopsony- a situation where there are a lot of small sellers and one single buyer in the market.
Multiplier- multiplier; a category used in economic theory to characterize and define the various relationships where the multiplier effect takes place. In particular, in Keynesianism, a multiplier is a coefficient that characterizes the dependence of a change in income on a change in investment.
"Invisible Hand"- a concept introduced into scientific circulation by A. Smith, according to which such a correlation is assumed in the interaction of economic entities and the state, when the latter, without counteracting objective economic laws, does not interfere in the process of "natural", i.e. free functioning of the market mechanism.
Money neutrality- the theoretical position of the "classics", which simplifies the essence of the monetary commodity to a certain technical means convenient for exchange, and leads to an orthodox version of the quantitative theory of money.
"Neoclassical synthesis"- the term of P. Samuelson, used "to denote ... the synthesis of those truths that were established by classical political economy, and the provisions proved by modern theories of income formation"; the broader semantic meaning of this term in the economic literature testifies to the formation of a new universal doctrine of modern economic science.
neoclassical theory- one of the modern directions of economic thought, which was formed in the 90s. 19th century on the basis of both the ideas of economic liberalism and "pure theory" and the principles of system analysis of marginal (marginal) indicators and microeconomic research, being an alternative to classical political economy; from the 30s 20th century the theoretical and methodological tasks of the "neoclassics" were supplemented by macroeconomic research and the problems of social orientation and state regulation of the economy.
neoliberalism- the economic concept of state regulation of economic processes on the principles of achieving free (“pure”) competition of entrepreneurs, freedom of markets and other elements of economic liberalism; alternative to Keynesian concept of state regulation of the economy.
nominalist theory of money- a theory that interprets the conditionality of the value of the money to be minted by the denomination of the coin valuation, which is established by the state.
General equilibrium- a stable state of a competitive economy, in which the consumer maximizes the value of the utility function, and competing producers maximize their profits at prices that ensure the equality of supply and demand.
Oligopoly- dominance of a few largest firms on the market.
"Pareto Optimum"(public maximum utility) - a concept intended to evaluate such changes that either improve the well-being of all, or do not worsen the well-being of all with an improvement in the well-being of at least one person; a concept that allows you to make the best decision to maximize profits.
Competition policy- a set of laws and government measures aimed at the maximum possible implementation in practice of the ideal of full (free, clean) competition.
Political Economy- a term introduced into scientific circulation by A. Montchretien, who published in 1615 the "Treatise of Political Economy"; the name of economic science designed to solve problems:
a) the state economy (mercantilist version);
b) free private enterprise (a version of classical political economy).
marginal utility- the ability to satisfy the least intense need; additional utility that a consumer receives from an additional unit of a good or service.
Protectionism- a policy aimed at protecting the national economy from foreign competition by directly or indirectly restricting the import of goods.
"Psychological Law"- J. M. Keynes' position, according to which "as real income increases, society wants to consume its ever-decreasing part."
Equilibrium price- the price of the goods in case of equality of supply and demand.
Propensity for liquidity- the desire to set aside part of the money in the reserve in the form of banking or securities.
Method for determining total utility- a way to assess the marginal utility of consumed goods; the method is called addictive if the marginal utility of homogeneous goods with each subsequent unit is characterized with a decreasing trend, and multiplicative if the marginal utility of homogeneous goods is multiplied by their number.
"Fair price"- a category of economic doctrine of the canonists, "explaining" the legitimacy of administrative (non-market) pricing and the possibility of "selling a thing more expensive" in order to avoid causing damage to both its "owner" and the entire "public life".
"Theory of imputation"- the pricing theory of the “Austrian school”, the essence of which is reduced to the process of successive intervention of the share of the cost (value) of the good of the “first order” with the goods of the “subsequent orders” used in its production.
Production cost theory- one of the costly interpretations of the theory of value, according to which the value of a product is due to the costs in the production process for the factors "labor", "capital", "land".
"Expectation Theory"- the theory of E. Bem - Bawerk about the mechanism of the origin of interest on capital due to the productive essence of the time factor; specific resource "capital" depending on its size and time of operation, i.e. "expectations", provides a greater or lesser interest on capital.
Labor theory of value- one of the costly versions of the theory of value, according to which the value of a product is created by a certain amount of labor expended.
"Phenomena of Excess Power"- the position put forward by E. Chamberlin in the theory monopolistic competition; arises in the process of activity of the seller - a monopolist, striving to master "known parts of the common market", and is supported by his patents, trade marks, skill, special talents.
Physiocracy- translated from Greek "the power of nature"; the course of classical political economy (second half of the 18th century) in France, whose representatives proceeded from the decisive role in the economy and consciousness of the national wealth of the land, agricultural production.
Household(economic) system - V. Eucken's concept of two "ideal types" of economic systems: a centrally controlled economy (economic life is regulated by plans emanating from one center) and an exchange economy (each economic entity is guided by its own plans).
"Robinson's Farm"- a term introduced into scientific circulation by K. Menger, used to analyze economic relations and indicators at the level of a separate economic entity (individual), i.e. at the micro level, taking into account the phenomenon of ownership and due to the relative rarity of the benefits of human egoism.
Chrematistics- the term used by Aristotle when referring to the unnatural sphere of human activity; the reckless art of making a fortune through large commercial transactions and usurious transactions.
Pure economic theory- the theoretical and methodological position of the "classics" and "neoclassics", indicating their commitment to "hold on to pure knowledge", "pure theory", i.e. without subjectivist, psychological and other non-economic layers in economic analysis.
Economics- a term introduced into scientific circulation by A. Marshall in his work "Principles of Economics" (1890); the name of economic science, which, according to P. Samuelson, "implies savings or maximization" and is devoted to "the problem of the optimal volume at which profit reaches a maximum."
economic liberalism(policy of laissez faire) - the policy of non-intervention of the state in the economy; a set of economic freedoms; free competition, free enterprise, free prices, free trade, etc.
Supply elasticity- reaction of the offer to price change.
Elasticity of demand is the response of demand to price changes.
"The Veblen Effect"- a description of the situation in which a decrease in the price of a product is perceived by the buyer as a deterioration in its quality or a loss of its “activity” or “prestige” among the population, and then the product ceases to be in consumer demand, and in the opposite situation, on the contrary, the volume of purchases with an increase in price can increase.
Effective Demand- a term from the concept of John. M. Keynes about the potential and stimulated by the state demand for investment and means of production.