Archives: Terms

Definition of Times Covered Times Covered, often referred to as the Interest Coverage Ratio, is a financial metric used to determine how easily a company can pay interest on its outstanding debt. It is calculated by dividing a company’s earnings before interest and taxes (EBIT) by the company’s interest expenses […]

Definition of Time-Series Data Time-series data refers to a sequence of data points collected or recorded at specific time intervals. This type of data is essential in various fields such as economics, finance, environmental science, and even social sciences, as it helps in understanding trends, cycles, and patterns over time. […]

Definition of Time-Inconsistency Time inconsistency refers to a scenario where a decision-maker’s preferences change over time in such a way that a preference at one time is inconsistent with a preference at another time. This often occurs when individuals or policymakers make plans for the future but deviate from those […]

Definition of Time Lags Time lags refer to the delays that occur between the implementation of an economic policy and the observable effects of that policy. These delays can hinder the effectiveness of policy measures, particularly in addressing urgent economic issues. Time lags are intrinsic in both fiscal policy (government […]

Definition of Time Horizon Time horizon refers to the length of time over which an investment is expected to be held before it is liquidated. The time horizon can vary significantly depending on the investor’s objectives, risk tolerance, and financial goals. Generally, it spans from the short term (a few […]

Definition of Time Discounting Time discounting is a concept in economics and behavioral psychology that refers to the tendency for people to value immediate rewards more highly than future rewards. It describes how individuals prefer a smaller, sooner reward over a larger, later one, all else being equal. This behavior […]

Definition of Time Deposit A time deposit, also known as a term deposit or fixed deposit, is a financial product offered by banks and credit unions where an individual deposits a sum of money for a specified period, receiving interest in return. Unlike regular savings accounts, withdrawing funds before the […]

Definition of Tight Monetary Policy Tight monetary policy, also known as contractionary monetary policy, involves the actions taken by a central bank to reduce the money supply within an economy. This approach aims to curb inflation, stabilize currency, and control excessive economic growth. Typical measures include raising interest rates, increasing […]

Definition of Tight Fiscal Policy Tight fiscal policy, also referred to as contractionary fiscal policy, involves government measures to reduce its expenditure, increase taxes, or both, with the aim of shrinking the economic activities in the market. This type of fiscal policy is typically used to reduce budget deficits and […]

Definition of Tied Loans Tied loans refer to loans provided on the condition that the borrower engages in specified transactions or purchases from the lender or third parties linked to the lender. These conditions often stipulate that the loaned money must be used to buy certain goods or services. Tied […]