Archives: Terms

Definition of Spillover Spillover, in the context of economics, refers to the impact that seemingly unrelated events in one nation or industry can have on other nations or industries. Essentially, spillover effects occur when economic activities or policies in one context lead to consequences in another context, often due to […]

Definition of Speculator A speculator is an individual or entity that engages in the buying and selling of financial instruments with the aim of profiting from short-term fluctuations in their prices. Unlike investors who typically seek long-term appreciation and income from their investments, speculators focus primarily on capitalizing on market […]

Definition of Speculative Motive The speculative motive is a concept in economics and finance that refers to the reason for holding assets, like money or securities, based on expectations of future price changes. Essentially, individuals or firms may hold onto cash or other liquid assets to take advantage of anticipated […]

Definition of Speculative Demand for Money The speculative demand for money refers to the desire to hold cash or liquid assets instead of investing them in other financial assets or securities. This behavior is driven by the expectation that future changes in interest rates may make holding money more advantageous […]

Definition of Speculative Bubble A speculative bubble, also known simply as a financial bubble, occurs when the price of an asset rises significantly over its intrinsic value, driven primarily by exuberant market behavior. This unsustainable surge is fueled by speculation rather than fundamental factors. Investors buy the asset with the […]

Definition of Speculation Speculation refers to the act of trading in an asset, or conducting a financial transaction, that has a significant risk of losing value but also holds the expectation of a substantial gain. Speculation is driven by the potential for profit due to market price fluctuations in securities, […]

Definition of Specific Tax A specific tax, also known as a per-unit tax, is a tax that is levied on a particular amount per unit of a good or service, irrespective of its price. Unlike ad valorem taxes, which are based on the item’s value, specific taxes impose a fixed […]

Definition of Special Drawing Rights (SDRs) Special Drawing Rights (SDRs) are an international type of monetary reserve currency created by the International Monetary Fund (IMF) that operates as a supplement to the existing reserves of member countries. Essentially, SDRs serve as an international reserve asset that can be used by […]

Definition of Special Deposits Special deposits refer to deposits with specific, tailored terms that distinguish them from regular deposits. These unique conditions can include special interest rates, maturity dates, or requirements, making them appealing for particular investment strategies or savings goals. In most cases, banks and financial institutions offer special […]

Definition of Spearman Rank Correlation Coefficient The Spearman Rank Correlation Coefficient, often denoted by the Greek letter rho (ρ), is a non-parametric measure of the strength and direction of association that exists between two variables measured on an ordinal scale. It evaluates how well the relationship between two variables can […]