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moneygirl Glossary ~ DEF

Submitted by on January 14, 2011 – 6:55 pmNo Comment

The DEF’s of Money

Dead cat bounce: A small and temporary recovery or improvement in a financial market following a large fall.

Debit: A debit is the opposite of a credit. It is an expense or money taken out of an account.

Debit card: A card which debits or subtracts money from a bank account; these transfers occur in real-time with a customer’s purchase.

Debt: Borrowed money.

Debtor: A person or organization that owes money to you.

Deficit: The amount by which money spent is greater than money received. This word usually refers to the government’s deficit, which develops when budgets are over-spent.

Deflation: A drop in the cost of goods and services; it is the opposite of inflation.

Depreciate: A decrease in the value of certain assets, such as buildings and equipment, over time.

Depression: A severe decline in the economy. A period of time when supply is greater than demand, resulting in falling prices, job loss and a shrinking economy.

Direct deposit: A method of payment which electronically credits or deposits money into your chequing or savings account.

Dividend: A share of profits paid to those who own stock in a company.

Duty: A tax on goods brought into a country (imports) or taken out of a country (exports).

Earned income: Money earned from working; it includes wages, salary, and tips.

Earnings: A company’s earnings are profits or net income after the company has paid taxes.

Economics: The study of the economy.

Economy: The way in which a country manages its money and resources to produce, buy, and sell goods and services. In a strong economy, the demand for goods and services is high. In a weak economy, demand is low and businesses suffer.

Employment rate: The percentage of the labour force that is currently employed or working.

Entrepreneur: A person starting a new company who takes risks associated with starting a business, which may require money to cover start-up costs.

Equity: Equity means ownership. If you own stock, then you have equity in a portion of the company that issued the stock. It also refers to the net worth of a business or property.

Estate: Your estate is what you leave behind financially when you die. Your assets include cash, investments, businesses, retirement savings, real estate, antiques, and personal belongings.

Ethics: Standards of moral behaviour or judgment.

Euro: European currency, introduced on January 1, 1999.

Exchange: A marketplace in which shares, stocks, bonds, futures, commodities and options are traded.  An example is the New York Stock Exchange (NYSE) or the Toronto Stock Exchange (TSE).

Exchange Rate: The price at which the currency ($) of one country can be converted to the currency of another.

Exports: Goods or services sold into foreign countries.

Fiscal policy: Government spending and taxing for the specific purpose of stabilizing the economy.

Fiscal year end: The end of a 12-month accounting period.

Foreclosure: A process in which a homeowner’s property is seized by the holder of the mortgage (usually a bank) because the homeowner has not made payments on time.

Foreign currency: Money from another country.

Fee: The price charged for a service.

Finance: Finance deal with matters related to money and markets. It is a discipline concerned with determining value and making decisions based on the allocation of resources – including acquiring, investing and managing resources.

Financial Advisor: A professional person or organization that offers financial advice.

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