Glossary Category: Economics - Page 9 - 3auk

policies to reduce inflation

Policies to reduce inflation, often called contractionary policies, are economic strategies used to slow down rising prices. These

Securities are financial assets that can be traded. Common examples include shares (ownership in a company), bonds, and

The velocity of circulation is the average number of times a single unit of currency is spent on

Liquidity describes how quickly and easily an asset can be turned into cash without losing much of its

Deficit financing happens when a government spends more money than it earns from taxes and other income sources.

A central bank is a national institution that manages a country’s currency, money supply, and interest rates. It

Credit creation is the way commercial banks increase the total amount of money in an economy. They do

The bank credit multiplier (also called the money multiplier) measures the maximum amount of new bank deposits that

The capital ratio (also known as the capital adequacy ratio) measures a bank’s financial strength. It compares the