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Oesterreichische Nationalbank - Dictionary Category: Economy and Finance Date & country: 04/10/2008, AU Words: 3913

deflation
A decline in general price levels, often caused by a reduction in the supply of money or credit. Deflation can also be brought about by direct contractions in spending, either in the form of a reduction in government spending, personal spending or investment spending. Deflation has often had the side effect of increasing unemployment in an economy,...

deflation
A downward movement in the average level of prices....

deflation
A fall in the general level of prices. Also sometimes used, incorrectly, to mean a fall in GNP or an increase in unemployment....

deflation spiral
By deflation spiral one understands a vicious circle consisting of the following points: sinking goods prices (deflation);increasing purchase restraint on the part of the consumers (in expectation of far sinking prices); sinking extent of utilization of the production capacities of the enterprises; Further decline in prices (deflation) due to low e...

deflator
A value that allows data to be measured over time in terms of some base period, or, in more obscure terms, an implicit or explicit price index used to distinguish between those changes in the money value of gross national product which result from a change in prices and those which result from a change in physical output. The import and export pric...

degressive payment
degressive payments: payments which are gradually reduced over time....

delayed debit function
card with a delayed debit function: a card issued by banks indicating that the holder may charge his account up to an authorised limit. It allows holders to make purchases but does not offer extended credit, the full amount of the debt incurred having to be settled at the end of a specified period. The holder is usually charged an annual fee....

delivery
final transfer of a security or financial instrument....

delivery versus delivery
a link between two securities transfer (settlement) systems that ensures that a delivery occurs if, and only if, another delivery occurs and vice versa....

delivery versus payment
a link between a securities transfer system and a funds transfer system that ensures that delivery occurs if, and only if, payment occurs....

delivery versus payment system
a mechanism in a securities settlement system that ensures that the final transfer of one asset occurs if, and only if, the final transfer of (an)other asset(s) occurs. Assets could include securities or other financial instruments....

delivery versus payment system
Securities industry procedure whereby the sold securities are delivered to the buyer`s bank in exchange for payment. From the seller`s perspective, it is called `receive versus payment.` Institutional customers customarily use delivery versus payment to make settlement on transactions. It is also referred to as COD (cash on delivery) transactions....

delta
the current number of units of the underlying asset in a derivative`s replicating portfolio; In the Black-Scholes formula, the delta of a European call is the first derivative of the option value with respect to its concurrent underlying asset price....

delta
The delta of an option indicates the change of the option price in the event of a small movement in the price of the underlying. In mathematical terms, the delta is the first partial derivative of the option price function with respect to the underlying asset. To calculate the delta risk of an option with respect to the underlying, the option is tr...

delta
The measure of change in the value of an option compared with a change in the price of the underlying....

delta factor
The delta factor indicates the change in the option`s value when the value of the underlying instrument changes by one unit. Here the Austrian Banking Act (§ 22e para 2) provides that for listed options the delta published by the stock exchanges may be used. With OTC options the credit institute itself must compute the delta factors via adequate o...

delta-plus method
The delta-plus method uses the sensitivity parameters or `Greek letters` associated with options to measure their market risk and capital requirements. Under this method, the delta-equivalent position of each option becomes part of the standardised methodology set out in A.1-4 with the delta-equivalent amount subject to the applicable general marke...

demand account
A demand account or demand deposit (North America: checking account or chequing account, UK and Commonwealth: current account) is a deposit account held at a bank or other financial institution, for the purpose of securely and quickly providing frequent access to funds on demand, through a variety of different channels. A demand account allows the ...

demand deposits
A deposit payable on demand, or a time deposit with a maturity period or required notice period of less than 7 days, on which the depository institution does not reserve the right to require at least 7 days written notice of intended withdrawal. Commonly takes the form of a checking account....

demand deposits
A type of bank account whereby the account balance can be withdrawn by the depositor without prior notice to the bank (e.g. checking accounts). The balance can be withdrawn via check, automatic teller machine or by transfers to other accounts using a PC or telephone. The Federal Reserve uses demand deposits as a primary indicator as to when to impl...

demand deposits
Checking accounts in commercial banks. These banks are obliged to pay out funds when depositors write checks on those numbers. Checking accounts are not cash - they are numbers recorded in banks....

demand deposits
Demand deposits are overnight deposits that nonbanks or other banks hold with banks. They serve above all to handle cashless payments via current accounts, salary accounts, checking accounts and the like. No notice period or maturity applies to this category of deposits....

demand for money
This refers to the demand for money to hold. In other words, it is the demand for cash holdings or for cash balances. `Money to hold,` cash holdings, and cash balances refer to the amount of currency, checkable deposits, debit card balances, and other M1 types of money that are owned by all people taken together. The quantity of money demanded refe...

demand schedule
A table or listing showing the number of units of a single type of good (or service) that potential purchasers would offer to buy at each of a number of varying prices during some particular time period. Demand schedules may be drawn up to reflect the behavioral propensities of a single unique individual, household, or firm -- or, more frequently e...

demand-pull inflation
If there is an excess level of demand in the economy, this will tend to cause prices to rise. This type of inflation is called demand-pull inflation and is argued by Keynesians to be one of the main causes of inflation. As demand increases there is increasing inflationary pressure on prices. This is demand-pull inflation - `too much money chasing t...

demand-pull inflation
Price inflation caused by an excess demand for goods in general, as when there is a major increase in aggregate demand. Often contrasted with cost-push inflation....

dematerialisation
The elimination of physical certificates or documents of title which represent ownership of financial assets so that the financial assets exist only as accounting records....

dematerialization
Dematerialization denotes replacing a paper-based system of settling security trades with a computer-based system, that is, switching to paperless trading....

demonetize
1. To divest (a coin, for example) of monetary value. 2. To stop using (a metal) as a monetary standard....

demonetized banknote
Paper money officially withdrawn from circulation and no longer redeemable. Not be confused with notes no longer legal tender but still redeemable by the issuing authority or its designates....

denticles
Coin rim which is higher than the coin relief, protecting the relief from wear when the coins are handled, e.g. when they are stacked....

dependency ratio
the number of active persons compared to the number of pensioners....

dependency ratio
the total of the youth dependency ratio and the aged dependency ratio. It combines the proportion of people who are not of working age, either because they are under 15 years (youth) or because they are over 65 years (aged), and compares this total with the proportion of people of working age (15 to 65 years). http://www.superannuation.asn.au/dicti...

dependent variable
A statistical term for whatever measure you are trying to predict...

dependent variable
Independent variables are those that are manipulated whereas dependent variables are only measured or registered. This distinction appears terminologically confusing to many because, as some students say, `all variables depend on something.` However, once you get used to this distinction, it becomes indispensable. The terms dependent and independen...

depletion
The process of cost allocation that assigns the original cost of a natural resource to the periods benefited....

deployment
Uploading files to a location that others can access. For example, your relatives across the country cannot see the online photo album that you created on your computer until you deploy the files to a Web server. You can also deploy to an intranet or extranet, so that only a select group of people have access. Many companies have their own intranet...

deposit currency
Currency that exists as deposits in accounts at banks, but does not have any physical form. Deposit currency can be converted to cash currency when a withdrawal is made. Note — private banks are able to create deposit currency, but only the central bank can create cash ( paper ) currency....

deposit facility
A standing facility of the ESCB which counterparties may use to make overnight deposits remunerated at a pre-specified interest rate....

deposit facility rate
`deposit facility rate` shall mean the interest rate applicable from time to time for the Eurosystem deposit facility...

deposit insurance system
The principal objectives of a deposit insurance system are to contribute to the stability of a country`s financial system and to protect less-financially-sophisticated depositors from the loss of their deposits when banks fail....

deposit money bank
Resident depository corporations and quasi-corporations which have any liabilities in the form of deposits payable on demand, transferable by cheque or otherwise usable for making payments....

deposit money bank
these are financial institutions other than monetary authorities that have liabilities in the form of deposits payable on demand and transferable by check....

Deposit Protection Fund
Designed to protect citizens` financial resources deposited in all banks and branches of foreign banks in Slovakia. The Deposit Protection Fund (hereinafter the Fund) was established with effect as of 1 July 1996, pursuant to Slovak Parliament Act No. 118/1996, Coll. on deposit protection and on amendments and supplements to several acts. The imple...

deposits redeemable at notice
Non-transferable deposits without any agreed maturity which cannot be converted into currency without a period of prior notice, before the term of which the conversion into cash is not possible or possible only with a penalty. It includes deposits which, although perhaps legally withdrawable on demand, would be subject to significant penalties and ...

deposits with agreed maturity
Non-transferable deposits which cannot be converted into currency before an agreed fixed term or that can only be converted into currency before that agreed term provided that the holder is charged some kind of penalty. This item also includes administratively regulated savings deposits where the maturity related criterion is not relevant....

deposits with an agreed maturity
Deposits with an agreed maturity: this instrument category consists mainly of time deposits with a given maturity that may, depending on national practices, either not be convertible prior to maturity or be convertible only subject to a penalty. It also encompasses some non-marketable debt instruments, such as non-marketable (retail) certificates o...

depreciation
`Devaluation” is deliberate (i.e., a policy choice) `Depreciation” is market-driven (though markets may also force a devaluation)...

depreciation
Definition: Currency depreciation - A decrease in the value of one currency relative to another....

depreciation
The gradual writing off of an asset according to a predetermined schedule, to account for deterioration. Not applied to land as there is automatic reduction in value over time. Does not involve any disbursement of cash....

depth
Extent of business which can be done without causing major price disturbance and which reflects market liquidity....

depth
Used to refer to a security market`s ability to absorb large security purchases or sales without significant price changes. A market`s depth is an important consideration in selecting securities to trade and markets in which to trade....

depth of a market
The number of shares of a security that can be bought or sold without causing an appreciable change in price....

derecognition of financial assets
Derecognition in the context of financial assets is the removal of the financial asset from the balance sheet through sale, payment, renegotiation, or default of the counter-party [IAS39.10]....

derivative
a financial contract the value of which depends on the value of one or more underlying reference assets, rates or indices. For analytical purposes, all derivatives contracts can be divided into basic building-blocks of forward contracts, options or combinations thereof....

derivative
A security whose value is dependent on, or derived from, the value of some underlying asset....

derivative security
A security whose value depends on the value of other basic underlying securities. Examples are futures and options, which are traded on organised exchanges, and forward contracts, swaps and other types of options, which are regularly traded outside of organised exchanges in what are termed over-the-counter markets....

Derivatives Policy Group
The Derivatives Policy Group (DPG) is an informal body of representatives of major American banks and investment firms. It was set up in August 1994, at the suggestion of the Securities and Exchange Commission, to formulate a code of conduct for trading in derivatives. Its rules were published in the `Framework for Voluntary Oversight.`...

designating authority
`Designating Authority” means a body with the legal power to designate, suspend or withdraw designation of Conformity Assessment Bodies under its jurisdiction. http://europa.eu.int/comm/trade/pdf/dbc_cag.pdf...

designation
`Designation” means the authorisation by a Designating Authority of a Conformity Assessment Body to perform conformity assessment activities; `designated” has a corresponding meaning; http://europa.eu.int/comm/trade/pdf/dbc_cag.pdf...

desk sharing
Another name for hot-desking or a more formalised system, where named employees share a desk or office in a rota system....

detective control
Detective controls are actions taken to detect and correct undesirable events which have occurred....

devaluation
A decrease in the official price of a nation`s currency, as expressed in the currencies of other nations or in terms of gold. Thus when the official price of the dollar was lowered with respect to gold in 1971, we say that the dollar was devalued. The opposite of devaluation, occurring when a nation raises its official foreign exchange rate relativ...

dial-up line
Communications line accessible via dial-up facilities, typically the public telephone network....

Dickey-Fuller test
A dickey-Fuller test is an econometric test for whether a certain kind of time series data has an autoregressive unit root. In particular in the econometric model y[t] = by[t-1] + e[t], where b=1, let b[OLS] denote the OLS estimate of b. Then T(b[OLS]-1) has a known distribution that they have documented....

die
An engraved stamp used for impressing a design (images, value, and mottoes) upon a blank piece of metal to make a coin....

digital certificate
A digital certificate issued by a certification authority is intended to ensure that a given digital signature is in fact generated by a given signer. A bank that undertakes to act as a certification authority could be considered to be providing services to clients similar to those associated with providing an account access device or acting as a n...

digital divide
technology gap between rich and poor...

digital divide
The digital divide - a technology gap between rich and poor - will close slightly during the next five years, according to a new study by Jupiter Communications. The study, titled `Assessing the Digital Divide(s),` joins a host of other recent reports that have that concluded the digital divide is an economic gap - not a racial one....

digital divide
This phrase appeared in the US in the middle 1990s to refer to the gap developing between those who had access to the Internet and those who did not. The implication was that poorer groups were losing out through lack of access to the information available online (a deprivation also referred to as being information poor)....

digital fingerprint
Digital fingerprints use mathematical algorithms to generate a string of digits and numbers that represents the contents of an electronically-transmitted message. If the message is tampered with, the digital fingerprint will change to reflect changes in the content. The fingerprint of the received message can then be compared with the digital finge...

digital option
A digital option, which is also called a binary option, is an option which will settle at either a fixed amount or nothing. There is no cap or tick, or in other words, the tick is the cap. For example, a March cumulative snowfall digital call option with strike 10 inches and payment of $500,000 will pay the option holder $500,000 if the cumulative ...

digital range
Digital ranges are also called accrual notes, corridor notes and hamster. Hamster is an acronym which has come to signify `hope for a market stabilisation in a given range`. They can be structures linked to interbank reference interest rates such as Euribor or Libor. The philosophy is the same as for ranges linked to stock price indices. This gives...

digital signature
A digital signature is a string of data appended to an electronic message that is intended to identify uniquely the sender to the recipient. At present, most digital signatures are generated using a cryptographic algorithm in which the sender uses one mathematical function to create the signature and the receiver uses a different, but related mathe...

digital signature
a string of data generated by a cryptographic method that is attached to a message to ensure its authenticity as well as to protect the recipient against repudiation by the sender....

direct debit
A direct debit is a variable automatic payment which, with your authorisation, is taken out of your account at regular intervals. This is a convenient way to pay bills like telephone, gas, electricity, etc. automatically. The amount taken from your account varies with the bill - it doesn`t have to be a regular pre-determined payment (you will still...

direct debit
Often the cheapest way to pay for gas and electricity. Payment can be made direct from your bank account either in equal monthly installments throughout the year (Fixed Monthly Direct Debit), or in full payment of each quarterly bill (Variable Direct Debit)....

direct debit
pre-authorised debit on the payer`s bank account initiated by the payee....

direct insurer
company which accepts risks in exchange for an insurance premium, and which has a direct contractual relationship to the policyholder (private individual, company, organization)....

direct investment
According to international standards (IMF/OECD), (direct or, where available, indirect) ownership of 10% or more of the equity of an enterprise constitutes a direct investment relationship. Member States using 20% or another criterion adopt 10% in significant cases....

direct investment
Direct investment is the category of international investment that reflects the objective of obtaining a lasting interest by a resident entity in one economy (`direct investor`) in an enterprise resident in another economy (`direct investment enterprise`). The lasting interest implies the existence of a long-term relationship between the direct inv...

direct investment capital
equity plus other capital...

direct investment enterprise
An enterprise in which one or more direct investors hold(s) a stake. The direct investor (an individual or an associated group of individuals or enterprises) must own at least 10% of the nominal capital of the direct investment enterprise. The 10% share must be equivalent to at least ATS 1 million....

direct investment enterprise
OECD recommends that a direct investment enterprise be defined as an uncorporated or unincorporated enterprise in which a foreign investor owns 10 per cent or more of the ordinary shares or voting power of an incorporated enterprise or the equivalent of an unincorporated enterprise....

direct investment flows
for subsidiaries and associated companies, the direct investor`s share of the company`s reinvested earnings plus a number of other items; for branches, the increase in unremitted profits plus other itmes....

direct investment income
for subsidiary and associate companies, dividends,... the direct investor`s share of the company`s reinvested earnings; plus additional items for branches. exact definition in...

direct investor
.. a resident entity in one economy which otbtains an interest in an entity resident in an economy other than that of the investor (`direct investment enterprise`)....

direct investor
A foreign direct investor is an individual, an incorporated or unincorporated public or private enterprise, a government, a group of related individuals.... which has a direct investment enterprise - that is, a subsidiary, associate or branch - operating in a country other than the country or countries of residence of the foreign direct investor(s)...

direct investor
One or more individuals or legal entities owning a share of a direct investment enterprise in an economy other than that in which the direct investor is domiciled....

direct issuance
In direct issuance, the issuer directly both issues and offers securities at its own risk. That is, when the offering is not filled, the unfilled portion of stock cannot be issued or should be reoffered. However, when the offering is not filled, the issuance itself is not completed for bonds....

direct offering
When securities are offered through direct issuance, it is called a direct offering. This direct offering is occasionally used by the unlisted financial institutions. When stocks of the unlisted financial are directly offered through newspaper advertisement, the issuer directly assumes underwriting risks....

direct payment
A customer simply completes a form authorizing a company, such as your mortgage holder, to initiate payment directly from your bank account. The authorization will require your account number and the routing number of your bank. With your authorization, your biller will instruct its financial institution to debit your account on the due date of the...

direct tax
Direct taxes are geared to the individual`s income, profit or wealth and are to some extent based on ability to pay. Indirect taxes are levied on particular goods (as with taxes like the VAT or GST), imports or exports (a favourite Third World form of taxation) or sin taxes on alcohol, gasoline and tobacco — regardless of the individual`s ability...

direct tax
Direct taxes are taxes on income. The main direct tax in the UK is income tax....

directing
Directing involves, in addition to accomplishing objectives and planned activities, authorizing and monitoring performance, periodically comparing actual with planned performance, and documenting these activities to provide additional assurance that systems operate as planned....

directional risk
Banks may choose to adopt the models approach as set out in Part B. It is essential that the methodology used encompasses directional risk, to capture the exposure from changes in spot prices arising from net open positions;...

directive control
Directive controls are actions taken to cause or encourage a desirable event to occur....

Director
`Directors` shall mean those persons who, under the law or the instruments of incorporation, represent the management company, the investment company or the depositary, or who effectively determine the policy of the management company, the investment company or the depositary....

dirty float
A type of floating exchange rate that is not completely freely floating because central banks intervene from time to time to alter the rate from its free-market level. It is still a floating rate because it has not been pegged at a predetermined par value....

dirty float
Government changes rates on a day-to-day basis without pre-announcement...