Economics Vocabulary
capital
A city that serves as the seat of government or a principal place for a particular function.
liquidity
The availability of liquid assets to a business or individual; the ease with which an asset can be converted into cash.
Glossary Reference
Terms related to finance, trade, markets, supply/demand, and resource management.
capital
A city that serves as the seat of government or a principal place for a particular function.
liquidity
The availability of liquid assets to a business or individual; the ease with which an asset can be converted into cash.
dividend
A sum of money paid regularly by a company to its shareholders out of its profits.
equity
The quality of being fair and impartial; also refers to ownership interest in property after liabilities are deducted.
asset
A valuable person, quality, or thing that can be used to advantage.
liability
A legal responsibility or obligation; something for which a person or entity is responsible.
inflation
A general increase in prices and fall in the purchasing value of money.
scarcity
A state of being in short supply; a lack of sufficient resources.
market equilibrium
A state in a market where supply and demand are balanced.
supply chain
A network of organizations, people, activities, information, and resources involved in supplying a product or service to a consumer.
demand curve
A graph that shows the relationship between the price of a good or service and the quantity demanded by consumers.
investment
The action or process of investing money for profit.
interest rate
The percentage at which interest is charged or paid for the use of money.
trade balance
The difference in value between a country's imports and exports of goods and services.
currency exchange
The process or system of exchanging one currency for another.
monetary policy
The management of money supply and interest rates by a government or central bank to influence the economy.
credit score
A numerical representation of a person's creditworthiness based on credit history.
opportunity cost
The potential benefits an individual or business misses out on when choosing one alternative over another.
forecasting
The act of predicting or estimating a future event or trend, often based on data analysis.
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