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

computational finance
Computational finance (also known as financial engineering) is a cross-disciplinary field which relies on mathematical finance, numerical methods and computer simulations to make trading, hedging and investment decisions, as well as facilitating the risk management of those decisions. Utilizing various methods, practitioners of computational financ...

computer time
Actual computational time necessary to process a set of instructions in the arithmetic and logic units of the computer....

concentration risk
risk of increased exposure to losses due to concentration of investments in a geographical area or other economic sector....

concept
1. A general idea derived or inferred from specific instances or occurrences. 2. Something formed in the mind; a thought or notion. See synonyms at idea. 3. A scheme; a plan: `began searching for an agency to handle a new restaurant concept` (ADWEEK)....

conceptual framework
The set of underlying principles and conventions that ensure the systematized and coherent recording of international transactions and stocks of foreign assets and liabilities....

concordance search
Searching a translation memory for text fragments is known as a concordance search....

conditional variance
The forecast of the variance of a time series at time t based on the time varying evolution of the series` variance up to time t-1. ifciGL...

Conditions of Service
`Dienstvorschrift Organisation,` the respective chapter on the tasks of organizational units in the OeNB`s Conditions of Service....

conduit
Conduit - A medium, or a legal vehicle. Specific to securitisations, this means an entity formed to hold receivables transferred by the originator on behalf of the investors. In pass through structures, an SPV is a mere conduit as it merely represents the collective property and cashflows of the investors. In case of asset-backed commercial paper i...

conduit
Conduit finance is an extremely popular means for banks to arrange short-term financing for corporate clients in the US and elsewhere. Effectively, these vehicles hold financial assets, such as loans and receivables, which are used as collateral for backing highly rated commercial paper. The banks receive an administrative fee for managing the stru...

confidence interval
A confidence interval is a range of values that has a specified probability of containing the parameter being estimated. The 95% and 99% confidence intervals which have .95 and .99 probabilities of containing the parameter respectively are most commonly used. If the parameter being estimated were m, the 95% confidence interval might look like the f...

configuration control
An element of configuration management, consisting of the evaluation, coordination, approval or disapproval, and implementation of changes to configuration items after formal establishment of their configuration identification....

confirmation
a particular connotation of this widely used term is the process whereby a market participant notifies its counterparties or customers of the details of a trade and, typically, allows them time to affirm or to question the trade....

confirmation
the process in which the terms of a trade are verified either by market participants directly or by some central entity (typically the market place). When direct participants execute trades on behalf of indirect market participants, trade confirmation occurs on two separate tracks: verification (generally termed confirmation) of the terms of the tr...

Consensus Forecasts
Consensus Forecasts is the result of a comprehensive monthly survey of over 200 prominent forecasters in the G7 countries and western Europe. Detailed coverage of the G-7 countries (United_States, Japan, Germany, France, United Kingdom, Italy and Canada), the Euro_zone, Netherlands, Norway, Spain, Sweden and Switzerland, featuring both individual a...

consequential damage
(Property insurance) Property loss from a peril that is not the immediate cause of loss; an indirect loss (e.g., a business interruption loss, extra expense, lost rent, etc.) arising out of an insured`s inability to use property damaged by another peril. Example: A burglar destroys records of accounts receivable during the burglary, causing further...

consequential loss
Consequential loss is a loss (normally one that costs you money) that you suffer as a result (consequence) of something going wrong with the goods you bought or a service received. The Consumer Guarantees Act allows you to claim compensation for consequential loss from a trader. Examples of consequential loss eg, as a result of a faulty bathroom...

conservatorship
The legal procedure provided by statute for the interim management of financial institutions used by the FDIC and RTC. Under the pass-through receivership method, after the failure of a savings institution, a new institution is chartered and placed under agency conservatorship; the new institution assumes certain liabilities and purchases certain a...

consignment stock
Stock held by one party (the dealer) but legally owned by another; the dealer has the right to sell the stock or to return it unsold to its legal owner. It is sometimes difficult to distinguish between the commercial realities of the transaction and the legal agreement. In accounting it is important that the concept of substance over form is applie...

consolidated account
A financial statement which covers a holding company and its subsidiaries....

consolidated accounting
Consolidated accounting report—A financial statement that combines the income statement and/or balance sheet of a parent company with one or more of its subsidiaries....

consolidated financial statement
Financial statement combining the activities of a business and its subsidiaries....

consolidated MFI balance sheet
The consolidated balance sheet of the Monetary Financial Institutions (MFI) sector is obtained by netting out inter-MFI positions on the aggregated MFI balance sheet (e.g. inter-MFI loans and deposits of money market funds with MFIs). It provides information on the MFI sector`s assets and liabilities vis-à-vis residents of the euro area not belong...

consolidating supervisor
that is the supervisory authority responsible for dealing with the top-level of an EU cross-border group....

consolidation
...`consolidation` shall mean the accounting process whereby the financial figures of various separate legal entities are aggregated as though they were one entity ......

consolidation lag
Konsolidierungsbedarf: einnahmen- und ausgabenseitigen Maßnahmen zur Defizitverringerung. Diebalek, VOWA...

constant elasticity of substitution
One of the most famous [ways of measuring the degree of substitutability between any pair of factors] is the elasticity of substitution, introduced independently by John Hicks (1932) and Joan Robinson (1933). Formally, the elasticity of substitution measures the percentage change in factor proportions due to a change in marginal rate of technical s...

constant ratio plan
An investment strategy in which the portfolio`s composition by asset class is maintained at a certain level through periodic adjustments. When the balance is upset, it is periodically restored by moving money from overperforming assets to underperforming ones. This system prevents one asset class from dominating the portfolio. This is one way to ma...

construction input prices index
Indexes which measure price changes for labour and materials used in non-residential building construction. Materials prices used are manufacturers` new order selling prices for commodities adjusted for changes in federal sales taxes, and labour rates used are basic union wage rates. Material indexes are generated at the total level, these indexes ...

construction management
A company that performs the duties of the construction manager and his staff. Especially on large construction projects, such firms may take over the role of a general contractor, by providing day-to-day supervision and direction of activities by general and subtrade construction contractors....

constructive ambiguity
A term widely attributed to Henry Kissinger and also known as `fudging`, the deliberate use of ambiguous language on a sensitive issue in order to advance some political purpose. In a negotiation, for example, constructive ambiguity might be employed not only to disguise an inability to resolve a question on which the parties remain far apart but t...

consultation
Consultation with the Bundesbank entails that it be given the opportunity to present its views and that they receive due consideration in the interests of reaching an understanding but without the opposite party`s being obliged to adopt the Bundesbank`s views in the end, if opinions continue to differ. Examples: The Bundesbank is consulted by the F...

consumer banking
`Consumer banking` bezieht sich auf das Massengeschäft im Privatkundenbereich (inzwischen oft auch als `Retailgeschäft` bezeichnet.). `Private Banking` ist dagegen der Begriff für die individueller gestalteten Dienstleistungen für vermögendere Kunden. Sprachlich soll damit wohl die Brücke zu den Privatbanken (die sich meist ausschließlich mit diese...

consumer confidence
Confidence is a reflection of how people feel about spending. It should capture everything in a single summary measure, whether it`s expectations about income, worries of job insecurity or other precautionary motives, says David Walton, economist at Goldman Sachs....

consumer confidence
Consumers` assessments of economic and financial trends, in a particular country and/or in the euro area. They include assessments of the past and current financial situation of households and resulting prospects for the future, the past and current general economic situation and resulting prospects for the future and the advisability of making maj...

consumer confidence
The degree of optimism that consumers are expressing for the state of the economy through their saving and spending activity....

consumer credit
Credit granted by a firm to consumers for the purchase of goods or services. Also called retail credit. [Harvey] any loan or extension of credit to an individual for personal, family, or household use not involving real estate. [OTS] ,...

consumer durables
Goods acquired by households which have an expected lifetime of more than one year and a relatively high value, such as motor cars, refrigerators and washing machines. Dwellings are excluded since they are classed as the fixed assets of an industry....

consumer education
Consumer education is the process of gaining the knowledge and skills needed in managing consumer resources and taking actions to influence the factors which affect consumer decisions...

consumer loan
Consumer loans are loans to individuals for household, family and other personal expenditures. This category includes credit cards and related plans....

consumer`s surplus
The difference between what a consumer is willing to pay for each unit of a commodity consumed and the price actually paid....

consumption
consumption = is the spending by households on goods and services...

consumption demand
The relationship between consumption expenditure and the real interest rate, other things remaining the same....

consumption of fixed capital
Consumption of fixed capital (K.1) represents the amount of fixed assets used up, during the period under consideration, as a result of normal wear and tear and foreseeable obsolescence, including a provision for losses of fixed assets as a result of accidental damage which can be insured against....

consumption share of GDP
the proportion of GDP that is used for consumption...

consumption smoothing
the idea that, although their incomes fluctuate, people try to stabilize consumption spending from year to year...

contestability of markets
Loosely speaking, a contestable market is a market where the threat of free entry and exit leads an industry to price more competitively. Whereas contestable oligopolies will price at marginal cost, thus competitively, a contestable monopoly in the presence of scale economies will price at average cost, thus reaching a second best (the first best b...

contestability of markets
The term `international contestability of markets` signifies an important qualitative deepening in the nature and degree of openness that should be sought for competition....

contingency table
A table of two or more variables cross-classified, consisting of cells showing the number of cases in each combination of categories from the variables. Also called a cross-tabulation....

contingency table
Tabulation: Putting data collected during research into tables. Cross-tabulation involves a two dimensional table, based on answers to two of the questions included in a survey....

contingent liabilities
Obligations that have been entered into, but the timing and amount of which are contingent on the occurrence of some uncertain future event. They are therefore not yet liabilities, and may never be if the specific contingency does not materialize....

contingent worker
...according to a Department of Labor study, only 1 in 5 contingent workers, which it defines as anyone who holds a temporary job, gets medical insurance....

continued payment of remuneration
Owing to the dependence of the employee on remuneration , in certain cases an obligation is imposed on the employer by statute, collective agreement, works agreement or the individual contract of employment to continue paying it although the work performance due from the employee has not been rendered. Instances which give rise to this obligation a...

continuous compounding
The process of accumulating the time value of money forward in time on a continuous, or instantaneous, basis. Interest is earned constantly, and at each instant, the interest that accrues immediately begins earning interest on itself....

continuous recording device
personal computer in the OeNB`S central high security storage area; the computer continuously records any transactions made in the area....

contract amount
The notional principal on which the FRA is based....

contract job
Term or contract job: job that is not seasonal and in which there is a definite indication from the employer before the job was accepted that the job will terminate at a specific point in time, or at the end of a particular task or project. This includes work done through a temporary help agency....

contract of employment
The contract of employment is a contract of service by which the employee undertakes to perform work in accordance with instructions (Civil Code § 611). This contract establishes an employment relationship . Since the terms and conditions of employment and the rights and obligations of the parties to a contract of employment are fixed mainly by st...

contract period
A reference to the life of any risk management agreement but especially to the effective term of a forward rate agreement (FRA)....

contract period
Contract period is the period from the settlement date to the maturity date....

contract size
The number of units of an underlying asset bought by exercising a call option or sold by exercising a put option. In the case of stock options the contract size is 100 shares of the underlying asset. In the case of options on futures contracts the contract size is one underlying futures contract. In the case of index options the contract size under...

contract work
This is work that is done for a specific period of time and a contract is drawn between the employer and the worker. The contract work does not include benefits....

contracting authority
`Contracting authorities` are State, regional or local authorities, bodies governed by public law, associations formed by one or several such authorities or one or several of such bodies governed by public law....

contraction
A period of general economic decline. Contractions are often part of a business cycle, coming after an expansionary phase and before a recession....

contractionary fiscal policy
Contractionary fiscal policy is a decrease in government purchases or an increase in taxes....

contractor
person or business which provides goods or services to another entity under terms specified in a contract. Unlike an employee, a contractor does not work regularly for a company. also called independent contractor....

contributing family workers
Contributing family workers are those workers who hold a `self-employment` job (cf. paragraph 7) in a market-oriented establishment operated by a related person living in the same household, who cannot be regarded as a partner, because their degree of commitment to the operation of the establishment, in terms of working time or other factors to be ...

contribution margin
The difference between variable revenue and variable cost....

contribution to investment
Self-Financing Ratio Indicator 4.8.01. This indicator, sometimes referred to as contribution to expansion, or contribution to investment, or cash generation, measures the net internal cash generation generated by an enterprise which is available for investment (expansion) purposes, usually to contribute to its investment program, particularly the p...

control
Control is any action taken by management to enhance the likelihood that established objectives and goals will be achieved. Management plans, organizes, and directs the performance of sufficient actions to provide reasonable assurance that objectives and goals will be achieved. Thus control is the reuslt of proper planning, organizing, and directin...

controlling
The management function of monitoring progress and making needed changes....

controlling interest
The ownership of a quantity of outstanding corporate stock sufficient to control the actions of the firm. Controlling interest often involves ownership of significantly less than 51% of a firm`s outstanding stock because many owners fail to participate in decision making. www.`>http://www.`>www....

convenience goods
purchased frequently and with minimal effort...

Convention money
Any system of coinage agreed by neighbouring countries for mutual acceptance and interchange. Examples include the Amphictyonic coins of ancient Greece and the Austrian and Bavarian talers and gulden of 1753-1857, which were copied by other south German states and paved the way for monetary union....

conventional wisdom
The phrase `conventional wisdom` was born--appropriately, in a fit of contrarianism--when John Kenneth Galbraith coined it in his exquisite 1958 screed, The Affluent Society. ... Galbraith loathed the postwar homogenization of American life. For Galbraith, `conventional wisdom`--the stifling conformity of elite opinion--was just another manifestati...

conventional wisdom
When asked, many of us define wisdom as the accumulation of experience and knowledge. In the spirit of this definition, some people add that there is a high-quality dimension to the accumulated experience and knowledge. Others add that wisdom includes good judgment that calls upon the accumulated experience and knowledge. We also use the phrase `co...

convergence
The movement of a futures contract price towards the price of the underlying during the life of the contract....

convergence criteria
Requirements established by the Treaty of Maastricht for all Member States who wish to participate in Economic and Monetary Union. The convergence criteria are: an inflation rate not more than 1.5 percentage points above that of the three best-performing Member States a government deficit which does not exceed 3% of GDP a ratio of public debt to...

convertible mark
The convertible mark, the new currency since June 1998, is pegged one-for-one with the German mark under a currency board regime, which guarantees its stability. The convertible mark is gradually replacing the German mark, which had been the de facto currency in Bosnia and Herzegovina since 1992. While German marks may continue to be accepted in so...

convexity
(1) In a fixed-income instrument, convexity is a measure of the way duration and price change when interest rates change. A bond or note is said to have positive convexity if the instrument`s value increases at least as much as duration predicts when rates drop and decreases less than duration predicts when rates rise. Positive convexity is desirab...

convexity
The amount by which the duration of an interest bearing instrument or portfolio changes for a given change in yield. For large changes in yield, convexity can make a significant difference to price. The greater the convexity, the better the performance of the instrument/portfolio; if the convexity is positive, the instrument`s duration will fall fo...

copay
Short for `copayment,` the flat fee you pay the doctor, hospital or pharmacy for use of their services under a managed-care plan. For example, rather than paying the full cost of the prescription, you pay $5 for any prescription you get. Or rather than paying the entire emergency-room bill, you pay $50 every time you go....

copayment
short: copay; A percentage of the charges for which you are responsible when receiving covered services....

core
The term `core` is used to identify the core set of architectural, computational processing elements that provide the functionality of a CPU....

core benefit account
`Core Benefit Account` in relation to any Member means the account maintained for the Member as described in Part 7 of these Rules, but - where the context requires - it means the amount, as determined by the Governing Council, acting on Actuarial Advice, which stands to the credit of that account on any given date;...

core capital
The Accord defines what types of capital are acceptable for supervisory purposes and stresses the need for adequate levels of `core capital` (in the accord this capital is referred to as tier one capital) consisting of permanent shareholders` equity and disclosed reserves that are created or maintained by appropriations of retained earnings or othe...

core hours
means the time periods during the workday, workweek, or pay period that are within the tour of duty during which an employee covered by a flexible work schedule is required by the agency to be present for work....

core inflation
Most papers refer to Eckstein`s (1981) definition of underlying or core inflation as the rate of price increases that occur along the economy`s long-term growth path. According to Eckstein the core inflation rate is thus a steady-state concept and equivalent to the trend increase of the price of aggregate supply. Alternatively, Parkin (1984) assume...

core PPI
Due to sharp movements in these two components, market players and economists have become accustomed to monitoring the PPI excluding food and energy. In shorthand, this is also referred to as the `core` PPI. (In reality, what can be more `core` than food and gasoline to consumers?)...

core workforce
This term comes from the distinction between `core` and `periphery`, and the core workforce is analogous to the primary sector of the labour market. Core workers are those considered to be central or strategically important to the employer`s business, who have relatively good employment conditions and job security and for whom employers provide tra...

corn salad
Any of several plants of the genus Valerianella, especially a Eurasian annual (V. locusta or V. olitoria), having small, white to pale bluish flowers and edible young leaves used in salads or as a potherb. Also called lamb`s lettuce, mache. AHDict...

corner solution
one of the two opposite extremes of exchange rate regimes on either side of the spectrum. based on...

corner solution
The main search throughout the conference was for the possibility of identifying exchange rate regimes that would fall in between the so-called two corner solutions, which emphasizes pure free-floating, on one hand, and currency board arrangements, on the other, as being the only viable choices for sustainable exchange rate regimes....

corporate bond
corporate bond is an IOU issued by a public company, such as British Telecom, ICI or Marks & Spencer. When you invest in a corporate bond, you are lending money to the company. In return you will receive interest at a fixed rate and the promise that your capital will be repaid at a certain date in the future. The guarantee that your capital will be...

corporate bond
Publicly issued debt securities with a maturity of less than one year are usually known as commercial paper, while debt securities issued with a maturity over one year are known as corporate bonds....

corporate bond
When corporations borrow, they use a variety of different terms and bond agreements. Corporate bonds are generally named for their attributes. The term debenture is used to describe a bond which borrows money backed by just the credit worthiness of the corporation. Debentures can be thought of as IOUs. Since debentures are backed only by the credit...

corporate financing
Non-financial corporations regularly need to take decisions on how they finance their operations, a subject known as corporate finance. Companies can acquire the funds they need to finance long-term investments and short-term expenses in a number of ways. First, they have to decide between internal sources of finance (such as retained earnings) and...

corporate governance
Our view of Corporate Governance is that it is `the organization`s strategic response to risk`. Corporate Governance includes: Strategic Planning: Developing plans and objectives to fulfill the organization`s purpose. Leadership: Communicating the organization`s purpose through vision. Organization Design: Establishing the structure that define...

corporate governance
the debate on redefining corporate management processes, including social and environmental responsibilities....

corporate governance
the system by which organisations are directed and controlled. Boards of directors are responsible for the governance of their organisation....