Archives: Terms

Definition of Fiscal Conservatism Fiscal conservatism is a political-economic philosophy that prioritizes fiscal responsibility, advocating for low government spending, low taxation, and minimal government debt. This stance holds that governments should avoid deficit spending, aim to reduce the size of government bureaucracy, and ensure long-term economic sustainability by operating within […]

Definition of Financial Transaction Tax A Financial Transaction Tax (FTT) is a levy imposed on a specific type of financial transaction for a particular purpose. This type of tax is typically associated with financial transactions involving the buying and selling of securities, such as stocks, bonds, and derivatives. The rationale […]

Definition of Financial Transaction A financial transaction refers to an agreement, communication, or movement of assets between two or more parties that results in the exchange of value. This can encompass a wide range of activities including the buying or selling of goods, services, or financial instruments, transfer of funds, […]

Definition of Financial Risk Financial Risk refers to the possibility of losing financial resources or assets due to various factors affecting financial markets or individual financial decisions. It is inherent in all financial investments and transactions and can arise from a multitude of sources including market movements, credit risk, operational […]

Definition of Financial Planning Financial Planning refers to a comprehensive process of evaluating one’s current and future financial state by using known variables to predict future income, asset values, and withdrawal plans. This strategic exercise aims to map out how future financial goals can be achieved through the management of […]

Definition of Financial Institution A financial institution is an establishment that conducts financial transactions such as investments, loans, and deposits. Essentially, these institutions serve as intermediaries between savers and borrowers, facilitating the flow of funds and the allocation of resources within the economy. They can be classified into various types, […]

Definition of Financial Economics Financial Economics is a branch of economics that analyzes the use and distribution of resources in markets in which decisions are made under uncertainty. It focuses on how resources are allocated in financial markets, how financial instruments are priced, and how financial decisions impact markets. This […]

Definition of Financial Deepening Financial Deepening refers to the process through which a country’s financial markets become more sophisticated and efficient, encompassing a broader range of financial instruments, services, and participating institutions. It indicates the depth and breadth of the financial system, including banks, non-bank financial institutions, capital markets, and […]

Definition of Final Good A final good or consumer good is a product that is ultimately consumed rather than used in the production of another good. For instance, a personal computer is a final good if bought by a consumer for personal use. However, the same computer could be considered […]

Definition of Feudalism Feudalism, a dominant social system in medieval Europe, is characterized by the holding of land in exchange for service or labour. This hierarchical system was structured around relationships derived from the holding of land, known as fiefs. Under feudalism, a monarch or higher-ranking noble would grant land […]