Glossary World Factbook World News Trade associations Link to us Useful link WVB guide
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
M1: The total quantity of coins and paper currency classified as legal tender by government mandate that circulates in the hands of the public, plus all checking account balances the public maintains in financial institutions.
M2 : All of M1 plus savings, small time deposit account balances (less than $100,000) in financial institutions and small money market mutual funds owned by individuals.
M3: Measure of the U.S. money stock that consists of M2, time deposits of $100,000 or more at all depository institutions, term repurchase agreements in amounts of $100,000 or more, certain term Eurodollars, and balances in money market mutual funds restricted to institutional investors.
Macroeconomics : The study of the sum total of economic activity, dealing with the issues of growth, inflation 0 and unemployment and with national economic policies relating to these issues.
Malthusian Trap : The minimum subsistence level to which humans descend as a result of geometric population growth and arithmetic resource growth.
Managed Floating: Intervention by central banks in foreign exchange markets to stabilize their currency exchange rates.
Margin: With regard to securities, this term refers to a fractional amount of full value, or the equity outlay (down payment) required for an investment in securities purchased on credit.
Margin stock : Any stock listed on a national securities exchange, any over-the-counter security approved by the SEC for trading in the national market system or appearing on the Board's list of over-the-counter margin stock, and most mutual funds.
Marginal: The additional or extra quantity of something. If one drinks six sodas in a day, the marginal soda would be the sixth soda.
Marginal Cost: The increase in total costs as one more unit is produced.
Marginal Productivity: The additional output obtained by adding an additional unit of a productive resource, such as labor. More precisely, marginal productivity is the change in total output divided by the change in the amount of the productive resource employed. Marginal productivity = change in total output change in amount of productive resource
Marginal Propensity to Consume (MPC) : The percentage of new or added income that is consumed.
Marginal Propensity to Save (MPS) : The percentage of new or added income that is saved.
Marginal Revenue: The addition to total revenue as one additional unit is produced and sold.
Marginal Tax Rate: The tax rate charged on the taxpayers last dollar earned; in a progressive tax system the marginal tax rate is always greater than the average tax rate.
Market: A network in which buyers and sellers interact to exchange goods and services for money.
Market Clearing Price: A price which rations the supply of a good among competing consumers so that the quantity of the good demanded is equal to the quantity supplied.
Market Economy: A decentralized system where many buyers and sellers interact.
Market interest rates: Rates of interest paid on deposits and other investments, determined by the interaction of the supply of and demand for funds in financial markets.
Matched sale-purchase agreements An agreement in which the Federal Reserve sells a security outright for immediate delivery to a dealer or foreign central bank, with an agreement to buy the security back on a specific date (usually within 7 days) at the same price. Matched sale-purchase agreements are the reverse of repurchase agreements and allow the Federal Reserve to withdraw reserves on a temporary basis.
Member bank : Depository institution that is a member of the Federal Reserve System. All federally chartered banks are automatically members of the System. State-chartered banks are divided into those that are members of the System (state member banks) and those that are not (nonmember banks).
Merchandise Trade Balance : Category in the current account of the balance of payments which includes all traded goods (manufactured items, agricultural commodities, chemicals and all other physically tangible products).
Microeconomics: The study of the individual parts of the economy, the household and the firm, how prices are determined and how prices determine the production, distribution and use of goods and services.
Minimum Wage: A wage below which employers may not legally pay employees for specific kinds of employment.
Monetarists: Followers of Milton Friedman who focus on the effect of money and monetary policy on changing price and employment levels.
Monetary Base: The total quantity of currency in circulation outside of banks plus the currency held by banks or deposited with the Fed.
Monetary Control Act of 1980 (MCA): An Act which requires that all banks and all institutions that accept deposits from the public make periodic reports to the Federal Reserve System. Starting in September 1981, the Fed charged banks for a range of services that it had provided free in the past, including check clearing, wire transfer of funds, and the use of automated clearinghouse facilities
Monetary Policy: The federal governments attempt to change aggregate demand through money supply changes.
Monetize: To convert assets into money.
Money: The accepted common medium of exchange for goods and services in the marketplace that functions as the unit of account, a means of deferred payment and a store of value.
Money market : Figurative expression for the informal network of dealers and investors over which short-term debt securities are purchased and sold. Money market securities generally are highly liquid securities that mature in less than one year, typically in less than ninety days.
Money Market Mutual Funds: Shares in institutional funds invested in financial instruments such as the US Treasury securities, certificates of deposit in financial institutions (CDs) and commercial paper (IOUs of big corporations).
Money Multiplier: The process by which excess reserves create new demand deposits or money; for example, with a 10% legal reserve requirement, $10 of excess reserves may be used to create $100 of new money.
Money Supply: Legal currency and various transaction account balances held at financial institutions (M1) plus small savings and time deposit accounts of individuals (M2).
Monopolistic Competition: A market with a large number of firms selling similar but differentiated products with no significant barriers to entry.
Monopoly: A market with only one supplier.
Multilateralism : An international policy intended to free international trade from the restrictions of bilateralism. Multilateralism represents an effort to permit nations to specialize in production and exchange in accordance with the principle of comparative advantage
Multiplier : The number of times new investment spending will be respent to produce a certain amount of new income.
Mutual savings banks : Banks which accept deposits primarily from individuals and place a large portion of their funds into mortgage loans. These institutions are prominent in many of the northeastern states. Savings banks generally have broader asset and liability powers than savings and loan associations but narrower powers than commercial banks. Savings banks are authorized to offer checking-type accounts
|Company | Mission | Useful Link | Link to Us | Site Map|