The role of this glossary is to present brief definitions of most of the key concepts in economics and finance (in total 1064 names-definitions) as well as security markets (financial, capital, money) with aim the reader to be able to understand and become familiar with the terminology in the analyses that will present in the category economics.
Additionally, we hope that the reader by acquiring intimacy with the economic terminology, he will also love the science/art of economics, giving to it a significant part of his personal time.
In the following glossary we tried to include the most well-known definitions and terms in the field of Economics & Finance. If you still find that a term or definition is missing and you know that it can be included in this glossary, please do not hesitate to contact us via the contact form of our web-site (Contact Us) and the Trust Economics will edit it and will include it.
Glossary Economics & Finance
There are currently 20 names in this directory beginning with the letter E.
Econometric modelis named a model whose equations are estimated with the use of statistical procedures.
Economic agents are named a term which is used to characterize the decision-makers in an economy.
Economic growthis named all the secular rises in the output of an economy. It is usually measured by the annual growth in GDP per capita.
Economic rent is named the returns to factors of production that surpass the minimum amount necessary to keep those factors of production in operation.
Economies of scaleis named the reduction in the transaction costs per currency unit of transaction as the size (scale) of transaction increases
Edge Act Corporationis a special subsidiary company of US banks with primarily aim to involve in international banking transactions.
Effective exchange rateis named an index which is consisting of a weighted average of a country’s exchange rates vis-à-vis its main trading countries.
Efficiency wagesare named those wages which are paid in excess of the marginal productivity of labour in order to give enough motives to the workers to put more effort in their work.
Efficient portfolio frontieris named the curve or the line on which are depicted the portfolios with the most preferable combinations of standard deviation and expected return that can be achieved by putting risky assets into portfolios.
Endogenous and exogenous variables are named those that are explained by economic principles; on the other hand, exogenous variables are named those which are measured as determined outside the system under study.
Endogenous growth is named the explanation of the growth which arise as the result of decisions which are taken by private agents in response to economic conditions, rather than as result to the exogenous of technical progress.
Endowmentare called the exogenous resources that economic agents expect to have both in the present and the future.
Equation of exchange is named the equation (NI=QM) that relates nominal income to the quantity of money.
Equilibrium rate of unemployment is called the unemployment rate which arise when employment and unemployment balance in a stable point. In other words, when aggregate demand for labour is met by aggregate supply of labour. There is a possibility that the labour supply to not perfectly reflect individuals’ preferences, this unemployment may be in part involuntary (structural unemployment) but may also mirror the efficiency of the labour market (frictional unemployment).
Equitiesare called those instruments which represent claims to share the net income and the assets of a business firm (such as common stock).
Equity capital is named the difference between a firm’s assets and its liabilities.
Equity efficiency trade-off is called the situation which arise when an improvement in equity among society’s members often has a negative effect on the economy’s efficiency.
Eurobonds are bonds which are denominated in a currency other than that in which they are sold
Eurodollarsare US dollars that are deposited in foreign banks outside of the USA or in foreign branches of US banks.
European option is named a market instrument (option) that can only be exercised on its expiration date.
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