Copy of `Oesterreichische Nationalbank - Dictionary`

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

propensity to consume
The total value of consumer expenditure on consumer goods and services divided by the national income. The marginal utility obtained from spending an extra amount of money saved varies among individuals. Some people like to spend what they earn relatively quickly and do not place a high value on saving. Economists say that these people have a high ...

propensity to save
average propensity to save: The proportion of income, whether of individuals, households or countries, which is not spent on consumption. www.`>http://www.`>www....

property
land and buildings, real estate; piece of land and its buildings;...

property income
Property income is the income receivable by the owner of a financial asset or a tangible non-produced asset in return for providing funds to or putting the tangible non-produced asset at the disposal of, another institutional unit; it consists of interest, the distributed income of corporations (i.e. dividends and withdrawals from income of quasi-c...

property purchase tax
Between the finalisation of the contractual process and the exchange of property for payment, the public notary can secure the position of both buyer and seller by registering a notice of future property transfer in the land title registry. It is important to stipulate in the contract, who precisely is responsible for any potential encumbrances (Be...

property purchase tax
The property purchase tax is payable on the purchase of all real property in British Columbia. It is calculated based on 1% of the purchase price up to $200,000.00 and 2% of any amount above $200,000.00. There does exist a FIRST TIME HOME BUYER tax exemption program. Consult your lawyer to obtain more information on these programs and to determine ...

property register
the property register identifies the correct address and indicates whether the property is freehold or leasehold. There is also reference to the official title plan and it may also give particulars of any rights that benefit the land e.g. a right of way over adjoining land....

proportional tax
A tax that takes the same percentage of income from all income groups....

proposed budget
Each spring, City departments submit their plans and needs for the coming year to the Office of Management and Budget which compiles a proposed budget. This is reviewed by the City Manager. The City Manager then submits the recommended budget to the City Commission. The Commission reviews the budget, holds two public hearings to obtain citizen inpu...

proprietary information
in trade secret law, information in which the owner has a protectable interest...

proprietary trading
trading in securities or derivatives for the account of a firm itself, rather than on behalf of clients....

proprietorship register
the proprietorship register gives the name and address of the legal owner and shows whether there are any restrictions on their power to sell, mortgage or otherwise deal with the land. This is where a bankruptcy inhibition or creditor`s notice should appear....

prospectus
A legal document offering securities or mutual fund shares for sale, required by the Securities Act of 1933. It must explain the offer, including the terms, issuer, objectives (if mutual fund) or planned use of the money (if securities), historical financial statements, and other information that could help an individual decide whether the investme...

protection against dismissal
A system of restrictions on the lawfulness of termination of existing employment relationships by the employer. Its most important element is the statutory protection provided; in addition, restrictions on dismissal may be imposed by collective agreement and the contract of employment . The general rules of statutory protection against dismissal ar...

provider
A company that provides Internet access to its customers....

provisions
Provisions and reserves are both methods of earmarking funds to finance expenditure which will be incurred at some time in the future. They are, however, used in quite different circumstances and require very different accounting treatment. A provision is any amount held in balance to meet the cost of a particular liability or loss which is likely ...

provisions
Provisions are recorded as a reserve by the enterprise in order to hedge against risks incurred in its operating and financial activities. One can distinguish between the following types of provisions: Provision for depreciation; Provisions for expenses to be allocated to more than one financial year; Provisions for pensions; Provisions for risks a...

proxy
Shareholder`s written authorization for another person to vote and represent him at a shareholders` meeting....

prudence concept
The accounting concept that insists on a realistic view of business activity and stresses that anticipated revenues and profits have no place in a profit and loss account until they have been realized in the form of cash or other assets for which the ultimate cash value can be assessed with reasonable certainty. Moreover, provision should be made f...

prudent man principle
prudence is not taking the lowest possible risk but taking measured and proportionate risks...

prudent man rule
The fundamental principle for professional money management, stated by Judge Samuel Putnum in 1830: `Those with responsibility to invest money for others should act with prudence, discretion, intelligence, and regard for the safety of capital as well as income.` Some states which don`t have specific legal lists require fiduciaries to uphold the Pru...

prudent person principle
This principle provides that assets must be invested in the best interest of members and be fairly widely spread at all times, in order to ensure the security, quality, liquidity and profitability of the portfolio. The proposed Directive also provides that investment in shares and in risk capital should not be unduly restricted....

prudent person rule
A legal maxim restricting the discretion in a client`s account to investments that a prudent person seeking reasonable income and preservation of capital might buy for his or her own portfolio. Also called the Prudent Man Rule....

prudential regulation
Prudential regulation covers the conditions imposed by the authorities to ensure that financial institutions are soundly based to carry on their business, dealing with matters such as liquidity, capital adequacy and solvency. Prudential regulation has to provide protection for customers and provide stability for the financial system. Therefore one ...

prudential regulation
Regulation is `prudential` when it is aimed specifically at protecting the financial system as a whole as well as protecting the safety of small deposits in individual institutions. When a deposit-taking institution becomes insolvent, it cannot repay its depositors. If it is a large institution, its failure can undermine confidence enough so that t...

PSP
A Payment Service Provider (PSP) offers merchants online services for accepting electronic payments by credit card or other payment methods such as payments based on online banking....

psychological pricing
Retail prices are often expressed as odd prices: a little less than a round number, e.g. $19.99 or £6.95. Psychological pricing is a theory in marketing that these prices have a psychological impact that drives demand greater than would be expected if consumers were perfectly rational. Psychological pricing is one cause of price points....

public disclosure
making information publicly accessible, for example by posting on an internet website or by making copies publicly available....

Public Finance Report
Fiscal policy report compiled by the ECB in spring on the basis of the ESCB central banks` answers to an ECB questionnaire....

public good
a good or service that has the characteristics of non-rivalry in consumption and non-excludability...

public good
PUBLIC GOOD: A good that has the property that all consumers can enjoy it jointly, without any one individual`s consumption reducing others` ability to consume. Thus no one need be excluded from consuming it....

public housing
Accommodation offered by the government to low income people for nominal rents....

public key cryptography
A technique that uses a pair of asymmetric keys for encryption and decryption. One is the public key (that can be distributed widely) and the private key (which is held by its owner and never distributed). When data is encrypted using the private key, it can only be decrypted using the public key; conversely, data encrypted using the public key can...

public offering
For public offering, general investors that have no relations to the company, are offered to buy securities at the same price and condition. Public offering are used to finance by issuing the new stocks when a company is newly established or to raise funds after a corporation is established. For public offering of bonds, the company offers bonds to...

public relations
The terms `public relations` and `communications` are often used interchangeably. Public relations explains an organization`s actions and policies in a focused, consistent and credible manner, to both employees and publics outside of the organization. The result is an informed and motivated workforce, a well-recognized brand name and a favourable p...

public servant
There are a wide variety of other public bodies who do not generally employ civil servants (other than on loan from government departments)....

public utilities
public utility: enterprise that provides certain classes of services to the public, including common carrier transportation (buses, airlines, railroads, motor freight carriers, pipelines, etc.); telephone and telegraph; power, heat, and light; and community facilities for water, sanitation, and similar services. In most countries such enterprises a...

public welfare
It embraces the primary social interests of safety, order, morals, economic interest, and non-material political interests....

public-private partnership
A Public-Private Partnership is a contractual agreement between a public agency (federal, state or local) and a for-profit corporation. Through this agreement, the skills and assets of each sector (public and private) are shared in delivering a service or facility for the use of the general public. The National Council for Public-Private Partnershi...

public-private partnership
The use of private money and private companies to finance and operate infrastructure that used to be entirely publicly funded. PPPs are one solution for countries that have found that public expenditure constraints of the euro have limited their ability to borrow for spending on roads, rail, bridges, ports, water and sewage schemes and similar infr...

public-to-private
Public-to-privates share a number of general characteristics; a management team and a newly incorporated company (backed by private equity) makes an offer to acquire the listed shares of a target company; the independent directors of the target (i.e. independent and unconnected with the management team, with no continuing role in the bidder or targ...

purchase price
The price at which purchased assets are sold or are to be sold to the buyer by the seller....

Purchasing Managers` Index
a compsite of production, orders, employment, inventories, and delivery times...

Purchasing Managers` Index
The Purchasing Managers` Index (PMI) is a composite indicator compiled by NTC Research on behalf of Reuters and provides timely indications for the manufacturing sector; the data are released on the first working day after the end of the reference month....

purchasing power
In economics, purchasing power refers to the amount money — or, more generally, liquid assets — can buy. As Adam Smith noted, having money gives one the ability to `command` others` labor, so purchasing power to some extent is power over other people, to the extent that they are willing to trade their labor or goods for money....

purchasing power
The amount of goods and services which can be purchased by a given unit of currency after taking into account the effect of inflation. Purchasing power can be assessed by tracking an index of consumer prices and comparing different periods, for example the early 1990s and the current time. Inflation will result in reduced purchasing power over a pe...

purchasing power parity
The idea that the true exchange rate between two currencies is given by the purchasing power of the currencies in each country. Consider a bundle of goods. Ask how much it would cost to buy that bundle in France, in French francs, and in the United States, in U.S. dollars. The ratio between the franc total and the dollar total is the `purchasing-po...

purchasing power standard
The PPS (purchasing power standard) is an artificial currency unit that reflects differences in national price levels that are not taken into account by exchange rates. This unit allows meaningful volume comparisons of economic indicators between countries....

put option
an option contract granting the purchaser the right to sell the underlying instruments at the agreed strike price. A put obliges the seller to purchase the underlying instrument at the agreed strike price, if the option is assigned to him....

put option
An option that gives the option buyer the right but not the obligation to sell (go `short`) the underlying futures contract at the strike priceon or before the expiration date....

put swaption
A swaption in which the buyer has the right to enter into a swap as a floating-rate payer. The writer of the swaption therefore becomes the floating-rate receiver/fixed-rate payer....

putable
A feature of bonds which grants the investor the right to sell the bond back to the issuer at par value on designated dates. This feature is advantageous to investors when interest rates rise causing the value of the bond to decrease. The put provision would allow the bondholder to force the issuer to redeem the bond at par....

puttable
A bond is described as puttable or having a put feature when the holder has the right to sell the bond back to the issuer at a specific date before maturity. The repurchase price, which may be at par, premium or discount, is specified at the time of issue....

qualified majority
A qualified majority is the number of votes required in the Council for a decision to be adopted when issues are being debated on the basis of Article 205(2) of the EC Treaty (former Article 148(2)). The threshold for the qualified majority is set at 62 votes out of 87 (71%). Member States` votes are weighted on the basis of their population and co...

qualifying participation
Qualifying participation shall mean the ownership, direct or indirect, of 10 % or more of the capital or of the voting rights of the company, or the possibility to exercise a significant influence on the management of a company in which a participation is held....

qualifying period
As a general rule, the grant of social security benefits is subject to the completion of a specified qualifying period (also called a `waiting period`) within which certain contributions must be paid or periods treated as contribution periods included....

quantile
Quantiles are points taken at regular intervals from the cumulative distribution function of a random variable. Dividing ordered data into q essentially equal-sized data subsets is the motivation for q-quantiles; the quantiles are the data values marking the boundaries between consecutive subsets. Put another way, the kth q-quantile is the value x ...

quantity-adjusting option
(1) A fixed exchange rate foreign equity option in which the face amount of the currency coverage expands or contracts to cover changes in the foreign currency value of a designated underlying security or package of securities. Quantos are used to adjust the investor`s base currency protection on an underlying position which varies in value in the ...

quanto option
This is an option designed to eliminate currency risk by effectively hedging it. It involves combining an equity option and incorporating a predetermined fx rate. Example, if the holder has an in-the-money Nikkei index call option upon expiration, the quanto option terms would trigger by converting the yen proceeds into dollars which was specified ...

quanto product
An asset or liability denominated in a currency other than that in which it is usually traded. Since the combined exposure to the asset and to the foreign exchange rate will change continuously, the structures must be dynamically hedged....

quartile
a term often used in fund performance. For example, funds are referred to as being in the top or bottom quartile, meaning that this is where they have been ranked in relation to the other funds in their category....

QUEST
3) quarterly European simulation tool...

QUEST
QUEST was designed to analyse the economies in the member states of the European Union and their interactions with the rest of the world, especially with the United States and Japan. The focus of the model is on the transmission of the effects of economic policy both on the domestic and the international economy. The model was primarily constructed...

quick assets
Cash and other assets which can or will be converted into cash fairly soon, such as accounts receivable and marketable securities; or equivalently, current assets minus inventory....

quick ratio
Cash, marketable securities, and accounts receivable divided by current liabilities. By excluding inventory, this key liquidity ratio focuses on the firm`s more liquid assets, and helps answer the question `If sales stopped, could this firm meet its current obligations with the readily convertible assets on hand?` Assuming there is nothing happenin...

quick ratio
Quick assets divided by current liabilities. This is also known as the `acid-test` ratio which is a sterner way to ascertain a company`s ability to pay off liabilities than the current ratio....

quick ratio
Quick Ratio - a measure of the amount of liquid assets available to offset current debt (Cash + Accounts Receivable / Current Liabilities). A healthy enterprise will always keep this ratio at 1.0 or higher....

quick tender
The tender procedure used by the ESCB for fine-tuning operations when it is deemed desirable to have a rapid impact on the liquidity situation in the market. Quick tenders are executed within a time frame of one hour and are restricted to a limited set of counterparties....

quit
A separation of an employee from an establishment that is initiated by the employee; a voluntary separation; a resignation from a job or position....

quoted shares
Quoted shares are those with prices that are quoted on any stock exchange. Unquoted shares have different characteristics. The full description of the shares will be found in the `memorandum` and `articles` of association of the company....

race to the bottom
The formal exposition of the `race to the bottom` argument assumes that producers will move to whichever country has the lowest tax rates, so that - in the absence of tax coordination - the attempt to attract or preserve employment will lead to tax rates being driven ever lower...

Raiffeisen Zentralbank
central bank to the country`s network of co-operative banks...

Raiffeisen Zentralbank
the umbrella institute for Austria`s nationwide network of cooperative banks;...

rainbow option
Rainbow options are options which have more than one underlying asset, where the underlying assets cannot be conveniently interpreted as a single composite asset. For example, an option on the S&P 500 Index can be interpreted as an option with 500 underlying assets. These are also called basket options. Other examples include spread options which s...

random variable
A function that assigns a real number to each and every possible outcome of a random experiment....

random variable
A random variable is a rule that assigns a value to each possible outcome of an experiment. For example, if an experiment involves measuring the height of people, then each person who could be a subject of the experiment has associated value, his or her height. A random variable may be discrete (the possible outcomes are finite, as in tossing a coi...

random walk
In door to door surveys, a technique for gathering a random sample of households after starting at a particular point. E.g. turning left after leaving the first house, walking anti-clockwise around the block and trying to interview somebody at every fourth house. Notice that, though it`s called a random walk, the selection of households follows a c...

random-walk theory
Increasingly called the `efficient-market hypothesis.` A view which holds that all currently available information is already incorporated into the price of common stocks (or other assets). Consequently, the stock market offers no bargains that can be found by looking at old or `stale` information (like recent price movements). Stock prices do chan...

range floater
A Range Floater is a deposit or Note that accrues interest daily when the underlying reference point is within a predefined range and accrues zero when outside that range. In general, Range Floaters are principal guaranteed so the investor is assured of at least receiving the principal back. By their nature, Range Floaters are ideal where the marke...

range floater
A security which does not pay interest if interest rates move outside a specified range....

rasterize
To prepare a page for display or printing. Rasterization is performed by a raster image processor (RIP), which turns text and images into the matrix of pixels (bitmap) that will be displayed on screen or printed on the page. Various conversions may take place. For example, the mathematical coordinates of vector and outline fonts as well as vector d...

RAT
Risk Assessment Table (lt. Alexandra Hohlec, BAREV)...

ratchet
`Bonus` and/or `malus` agreement, where depending whether the enterprise achieves its targets, equity holdings can be purchased at preferential terms by the seller (`bonus`) or buyer (`malus`)....

ratchet option
A ratchet option (or cliquet option) is a series of consecutive forward start options. The first is active immediately. The second becomes active when the first expires, etc. Each option is struck at-the-money when it becomes active. The effect of the entire instrument is of an option that periodically `locks in` profits. Ratchet features can be in...

ratchet option
Also known as cliquet, this type of option locks in gains based on a time cycle, such as monthly, quarterly, or semi-annually. This is accomplished by determining the price level of the currency on predetermined anniversay dates....

rate fixing date
Varies with market custom, but in the United States the swap rate fixing date is usually two business days prior to the first date the new rates are effective in a swap or other periodic reset agreement....

rate of inflation
A rate of increase in the general price level of all goods and services. (This should not be confused with increases in the prices of specific goods relative to the prices of other goods.)...

rate of internationalization
an International Investment Position ratio; ratio of the sum of external asset and liability positions of a specific reporting date to GDP...

rational expectations model
Finally, we have a fourth equation defining price expectations as rational that is that expectations about the general price level are based on all available information in the most recent time period It-1 E[Pt] = E[Pt

reach
In the application of statistics to advertising and media analysis, reach is defined as the size of the audience who listen to, read, view or otherwise access a particular work in a given time period. Reach may be stated either as an absolute number, or as a fraction of a given population (for instance `TV households`, `men` or `those aged 25-35`)....

real
Adjusted to remove the effects of inflation. Real output represents the quantity, rather than the dollar value, of goods and services produced. Real income represents the power to purchase real output. Real data at the finest level of disaggregation are constructed by dividing the corresponding nominal data, such as spending or wage rates, by a pri...

real bond
indexed bonds which offer protection against inflation, that is `real” bonds...

real business cycle theory
According to real-business-cycle theory, an above-average rate of growth of TFP means that more than the usual opportunities exist for the gainful employment of labor and machinery. To exploit this bonanza, firms invest more than usual in buildings and equipment and hire more than the usual number of workers. The additional income generated by abov...

real capital
nonmonetary capital...

real capital
There are two types of capital: Real capital like machines, equipment and financial or liquid capital which is money or paper capital. Capital goods are real capital in an economic sense of the word. Money capital or financial capital is necessary for the exchanges of production, Distribution and Consumption which are the three main factors of Econ...

real contract
The contracts of classical law were divided into four classes: LITERAL, VERBAL, REAL, and CONSENSUAL. ... If an agreement was not clothed in the form of a stipulation, it must, to be valid, fall under one of the types of real or consensual contracts. A REAL contract was one requiring that something should be transferred from one party to the other ...

real disposable income
after-tax income adjusted for inflation HHjuly98...

real EER
The ECB`s real EER is the geometric weighted average of relative consumer prices between the euro area and each trading partner, expressed in common currency....

real estate investment trust
REITs are sort of like mutual funds, except they invest in real estate (or mortgages) and pay out almost everything they earn (less the usual management fees) to shareholders. REITs have enjoyed a resurgence of popularity in recent years, and they are increasingly important players in the commercial real estate market. There are REITs nowadays that...

real GDP
GDP adjusted for inflation. Real GDP provides the value of GDP in constant dollars, which is used as an indicator of the volume of the nation`s output....