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Cap
Office of Management and Budget
Definition: A “cap’’ is a legal limit on annual discretionary spending. See also discretionary spending.
Citizen’s Guide to the Federal Budget
Definition: A ”cap” is a legal limit on annual discretionary spending.
Related Term(s): Discretionary spending
Capacity utilization
Capacity utilization rate
Definition: The seasonally adjusted output of the nation’s factories, mines, and electric and gas utilities expressed as a percentage of their capacity to produce output. The capacity of a facility is the greatest output it can maintain with a normal work pattern. (FRB)
Capital
Economics: Principles & Practices
Definition: Tools, equipment, and factories used in the production of goods and services; one of four factors of production
Definition: Physical capital is land and the stock of products set aside to support future production and consumption. In the national income and product accounts, private capital consists of business inventories, producers’ durable equipment, and residential and nonresidential structures. Financial capital is funds raised by governments, individuals, or businesses by incurring liabilities such as bonds, mortgages, or stock certificates. Human capital is the education, training, work experience, and other attributes that enhance the ability of the labor force to produce goods and services. Bank capital is the sum advanced and put at risk by the owners of a bank; it represents the first ”cushion” in the event of loss, thereby decreasing the willingness of the owners to take risks in lending. See also consumption and national income and product account.
Capital account (international)
Bureau of Economic Analysis (BEA)
Definition: Record of capital transfers between U.S. residents and foreign residents, such as debt forgiveness and migrants’ transfers, and acquisitions and disposals of nonproduced nonfinancial assets between residents and nonresidents.
Related Term(s): Balance of payments, Current account (international), Financial account (international)
Capital consumption adjustment (CCAdj), (private)
Capital consumption adjustment (CCAdj), (private)
Bureau of Economic Analysis (BEA)
Definition: Consists of tax-return-based depreciation charges for corporations and nonfarm proprietorships and of historical-cost depreciation (calculated by BEA) for farm proprietorships, rental income of persons, and nonprofit institutions.
Related Term(s): Consumption of fixed capital (CFC)
Bureau of Economic Analysis (BEA)
Definition: Expenditures made to acquire, add to, or improve property, plant, and equipment (PP&E). PP&E includes: land, timber, and minerals; structures, machinery, equipment, special tools, and other depreciable property; construction in progress; and tangible and intangible exploration and development costs. Changes in PP&E due to changes in entity—such as mergers, acquisitions, and divestitures—or to changes in accounting methods are excluded. Capital expenditures are measured on a gross basis; sales and other dispositions of fixed assets are not netted against them.
Bureau of Economic Analysis (BEA)
Definition: A measure of the flow of services available for production from the stock of capital goods. Growth in the capital input differs from growth in the capital stock because different types of capital goods (such as equipment, structures, inventories, or land) contribute differently to production.
Economics: Principles & Practices
Definition: Market in which financial capital is loaned and/or borrowed for more than one year
Federal Reserve Bank of Cleveland
Definition: The market in which corporate equity and longer-term debt securities (those maturing in more than one year) are issued and traded.
Related Term(s): Long-term interest rates
Definition: A system of accounting in which revenues are recorded when actually received and outlays are recorded when payment is made. Compare with accrual accounting.
Related Term(s): Accrual accounting
Federal Reserve Bank of San Francisco
Definition: A system, used especially in computing income tax, in which income is not credited until it is actually or constructively received and expenses are not charged until they have been paid; to be distinguished from the accrual method, in which income is credited when the legal right to the income occurs and expenses are charged when the legal liability becomes enforceable.
Economics: Principles & Practices
Definition: Ruling requiring a company to stop an unfair business practice that reduces or limits competition
Federal Reserve Bank of Cleveland
Definition: An order issued after notice and opportunity for hearing, requiring a depository institution, a holding company, or a depository institution official to terminate unlawful, unsafe, or unsound banking practices. Cease-and-desist orders are issued by the appropriate federal regulatory agencies under the Financial Institutions Supervisory Act and can be enforced directly by the courts.
Federal Reserve Bank of Minneapolis
Definition: An order issued after notice and opportunity for hearing, requiring a depository institution, a holding company, or a depository institution official to terminate unlawful, unsafe, or unsound banking practices. Cease-and-desist orders are issued by the appropriate federal regulatory agencies under the Financial Institutions Supervisory Act and can be enforced directly by the courts.
Federal Reserve Bank of San Francisco
Definition: An order issued after notice and opportunity for hearing, requiring a depository institution, a holding company, or a depository institution official to terminate unlawful, unsafe, or unsound banking practices. Cease-and-desist orders are issued by the appropriate federal regulatory agencies under the Financial Institutions Supervisory Act and can be enforced directly by the courts.
Economics: Principles & Practices
Definition: Bank that can lend to other banks in times of need, a ”bankers’ bank
Definition: A government-established agency responsible for conducting monetary policy and overseeing credit conditions. The Federal Reserve System fulfills those functions in the United States. See also Federal Reserve System and monetary policy.
Federal Reserve Bank of Cleveland
Definition: The principal monetary authority of a nation, a central bank performs several key functions, including issuing currency and regulating the supply of credit in the economy. The Federal Reserve is the central bank of the United States.
Federal Reserve Bank of Cleveland
Definition: In order to influence market conditions or exchange rate movements, central banks buy or sell their currency or the currency of other countries.
Economics: Principles & Practices
Definition: Receipt or document showing that an investor has made an interest-bearing loan to a financial institution
Federal Reserve Bank of Minneapolis
Definition: The buying or selling of currency, foreign or domestic, by central banks in order to influence market conditions or exchange rate movements.
Federal Reserve Bank of San Francisco
Definition: A form of time deposit at a bank or savings institution which cannot be withdrawn before a specified maturity date without being subject to an interest penalty for early withdrawal. Small-denomination CDs are often purchased by individuals. Large CDs of $100,000 or more are often in negotiable form, meaning they can be sold or transferred among holders before maturity.
Federal Reserve Bank of Cleveland
Definition: A form of time deposit at a bank or savings institution; a time deposit cannot be withdrawn before a specified maturity date without being subject to an interest penalty for early withdrawal. Small-denomination CDs are often purchased by individuals. Large CDs of $100,000 or more are often in negotiable form, meaning they can be sold or transferred among holders before maturity.
Federal Reserve Bank of Minneapolis
Definition: A form of time deposit at a bank or savings institution; a time deposit cannot be withdrawn before a specified maturity date without being subject to an interest penalty for early withdrawal. Small-denomination CDs are often purchased by individuals. Large CDs of $100,000 or more are often in negotiable form, meaning they can be sold or transferred among holders before maturity.
Bureau of Economic Analysis (BEA)
Definition: A measure used to approximate the chain-type index level and is calculated by taking the current-dollar level of a series in the base period and multiplying it by the change in the chain-type quantity index number for the series since the base period. Chained-dollar estimates correctly show growth rates for a series, but are not additive in periods other than the base period.
Related Term(s): Chained-type index, Current-dollar estimate
Bureau of Economic Analysis (BEA)
Definition: Index that is based on the linking (chaining) of indexes to create a time series. Annual chain-type Fisher indices are used in BEA’s national income and product accounts (NIPAs) whereby Fisher ideal price indices are calculated using the weights of adjacent years. Those annual changes are then multiplied (chained) together, forming the chain-type index time series.
Related Term(s): Chained-dollar estimate, Current-dollar estimate
Bureau of Economic Analysis (BEA)
Definition: The change in the physical volume of inventories owned by private business, valued at the average prices of the period. It differs from the change in the book value of inventories reported by many businesses; the difference is the inventory valuation adjustment (IVA).
Federal Reserve Bank of Cleveland
Definition: The movement of checks from the banks or other depository institutions where they are deposited back to those on which they are written, and funds movement in the opposite direction. This process results in credits to accounts at the institutions of deposit and corresponding debits to the accounts at the paying institutions. The Federal Reserve participates in check clearing through its nationwide facilities, though many checks are cleared by private sector arrangement.
Federal Reserve Bank of Minneapolis
Definition: The movement of a check from the depository institution at which it was deposited back to the institution on which it was written; the movement of funds in the opposite direction and the corresponding credit and debit to the involved accounts. The Federal Reserve operates a nationwide check-clearing system.
Federal Reserve Bank of San Francisco
Definition: The movement of checks from the banks or other depository institutions where they are deposited back to those on which they are written, and funds movement in the opposite direction. This process results in credits to accounts at the institutions of deposit and corresponding debits to accounts at the paying institutions. The Federal Reserve participates in check clearing through its nationwide facilities, though many checks are cleared by private sector arrangement.
Definition: Data on award of child support payments were collected from people 15 years or older with children under 21 years of age whose other parent was not living in the household. Information on recipiency and amount of payments was obtained from people who reported that they were awarded or had agreements to receive child support payments. Reason for nonaward of child support. Final agreement pending: A child support agreement was awaiting final court, magisterial, or legal action before becoming final, and/or a voluntary written agreement was not yet final. Joint custody granted: Housing, care, and support of the child(ren) was shared by both parents; therefore, no money or other support was exchanged. Did not want child support: The custodial parent indicated he/she did not want child support for own child(ren). Unable to locate other parent: Child support was desired, but the child(ren)’s noncustodial parent could not be located. Unable to establish paternity: Child support arrangements could not be made because the child(ren)’s paternity could not be established. Some other reason: The custodial parent wanted child support, and the reason for nonaward did not fit any of the reasons listed above. Inclusion of health insurance in child support award. This item refers to whether the child(ren)’s noncustodial parent had made health insurance arrangements for his/her child(ren) as part of the child support award. Arrangements for health insurance could have been made by the noncustodial parent purchasing a separate policy for the child(ren) or including the child(ren) under the health insurance provided by his/her employer. In either event, the purchase of, or inclusion of, health insurance must be part of the child support agreement. Insurance taken out by the custodial parent but paid for from child support payment by the noncustodial parent is not included. Type of child support arrangement. Voluntary written agreement: Voluntary written agreements between the parties. This agreement may or may not have been recognized by the courts as part of the divorce or separation proceedings. This type of agreement was not ordered by the courts. Court ordered: Payments ordered by the court. Court-ordered payments usually take place when a mutually acceptable agreement cannot be worked out between the parties. Other: Arrangements not within either of the two cases above. This category includes informal verbal agreements.
Definition: The term ”children,” as used in tables on living arrangements of children under 18, are all persons under 18 years, excluding people who maintain households, families, or subfamilies as a reference person or spouse. Own children in a family are sons and daughters, including stepchildren and adopted children, of the householder. Similarly, ”own” children in a subfamily are sons and daughters of the married couple or parent in the subfamily. (All children shown as members of related subfamilies are own children of the person(s) maintaining the subfamily.) For each type of family unit identified in the CPS, the count of ”own children under 18 years old” is limited to never-married children; however, ”own children under 25” and ”own children of any age,” as the terms are used here, include all children regardless of marital status. The counts include never-married children living away from home in college dormitories. Related children in a family include own children and all other children under 18 years old in the household who are related to the householder by birth, marriage, or adoption. The count of related children in families was formerly restricted to never-married children. However, beginning with data for 1968 the Bureau of the Census includes ever-married children under the category of related children. This change added approximately 20,000 children to the category of related children in March 1968.
Definition: The question ”How many babies has…ever had, if any? (Do not count stillbirths)” is asked of all women 15 to 44 years old. When asking about children ever born, interviewers are instructed to include children born to the women before her present marriage, children no longer living, and children away from home as well as children who are still living in the home. It is possible that some never-married mothers living with one or more of their natural children reported themselves as having been married. In addition, many mothers who first married after the birth of one or more children counted those children, as they were expected to do. Nevertheless, data are probably less complete for births out of wedlock than for births within marriage.
Internal Revenue Service (IRS)
Definition: Assuming all other dependency tests are met, the citizen or resident test allows taxpayers to claim a dependency exemption for persons who are U.S. citizens for some part of the year or who live in the United States, Canada, or Mexico for some part of the year.
Definition: There are five categories of citizenship status: 1) Born in the United States; 2) Born in Puerto Rico or another outlying area of the U.S.; 3) Born abroad of U.S. citizen parents; 4) Naturalized citizens; 5) Non-citizens. Place of birth was asked for every household member in the CPS sample, and for the parents of every household member. People born in the U.S. or it’s outlying areas, or whose parents were born in the U.S. or it’s outlying areas, were not asked citizenship questions. Citizenship status (1), (2), or (3) was assigned during the editing phase of data preparation based on the place of birth of the household member, or the place of birth of his or her parents. People born outside the U.S. and it’s outlying areas, and whose parents were born outside the U.S. and it’s outlying areas, were asked, ”Are you a citizen of the United States.” ‘Yes’ answers were assigned to the naturalized citizen category (4) and ‘No’ answers were assigned to the ”Not a citizen” category (5) during the editing process. People for whom no birthplace was provided were assigned a citizenship status during the editing process. For example, the citizenship status of a child might have been assigned based on the citizenship status of it’s mother.
Bureau of Labor Statistics (BLS)
Definition: A detailed grouping of weight groups. Classification groups are used to map weight groups to higher levels of aggregation called strata. Classification groups are represented by (1) six, eight, or ten digit Harmonized numbers, (2) composites of six, eight, or ten digit Harmonized numbers, (3) hybrid groupings specifically requested by industry analysts, or (4) services groupings developed by service analysts.
Federal Reserve Bank of Cleveland
Definition: An institution where mutual claims are settled between accounts of member depository institutions. Clearinghouses among banks have traditionally been organized for check-clearing purposes, but more recently have cleared other types of settlements, including electronic fund transfers.
Federal Reserve Bank of Minneapolis
Definition: An institution where mutual claims are settled between accounts of member depository institutions. Clearinghouses among banks have traditionally been organized for check-clearing purposes, but more recently have cleared other types of settlements, including electronic fund transfers.
Federal Reserve Bank of San Francisco
Definition: An institution where mutual claims are settled between accounts of member depository institutions. Clearinghouses among banks have traditionally been organized for check-clearing purposes, but more recently have cleared other types of settlements, including electronic fund transfers.
Federal Reserve Bank of San Francisco
Definition: An automated clearing system used primarily for international payments. This system is owned and operated by the New York Clearinghouse banks and engages Fedwire for settlement.
Federal Reserve Bank of Cleveland
Definition: Generally, any loan or credit sale agreement in which the amounts advanced, plus any finance charges, are expected to be repaid in full over a definite time. Most real estate and automobile loans are closed-end agreements.
Bureau of Labor Statistics (BLS)
Definition: A cohort in the Bureau of Labor Statistics’ National Longitudinal Surveys (NLS) program is a group of people, defined by age, that make up a particular study. For example, the National Longitudinal Survey of Youth 1979 (NLSY79) cohort is made up of people born between January 1, 1957, and December 31, 1964.
Economics: Principles & Practices
Definition: Property or other security used to guarantee repayment of a loan
Federal Reserve Bank of Cleveland
Definition: Property that is offered to secure a loan or other credit and that becomes subject to seizure on default. (Also called security.)
Bureau of Labor Statistics (BLS)
Definition: Method whereby representatives of employees (unions) and employers determine the conditions of employment through direct negotiation, normally resulting in a written contract setting forth the wages, hours, and other conditions to be observed for a stipulated period (e.g., 3 years). Term also applies to union-management dealings during the term of the agreement.
Definition: The college enrollment statistics are based on replies to the interviewer’s inquiry as to whether the person was attending or enrolled in school and the grade or school or year of college. Interviewers were instructed to count as enrolled anyone who had been enrolled at any time during the current term or school year, except those who have left for the remainder of the term. Thus, regular college enrollment includes those people attending a 4-year or 2-year college, university, or professional school (such as medical or law school) in courses that may advance the student toward a recognized college or university degree (e.g., BA or MA). Attendance may be either full time or part time, during the day or night. The college student need not be working toward a degree, but he/she must be enrolled in a class for which credit would be applied toward a degree. (see ”school enrollment”). Students are classified by year of college, based on the academic year (not calendar year) they are attending. Undergraduate years are the 1st through 4th year, or freshman through senior. Graduate or professional school years include the 5th year and higher. Two-year and four-year colleges: College students were asked to report whether the college in which they were enrolled was a 2-year college (junior or community college) or a 4-year college or university. Students enrolled in the first 4 years (undergraduates) were classified by the type of college they reported. Graduate students are shown as a separate group. Attendance, full-time and part-time. College students were classified according to whether they were attending school on a full-time or part-time basis. A student was regarded as attending college full time if he/she was taking 12 or more hours of classes during the average school week, and part time if he/she was taking less than 12 hours of classes during the average school week.
Economics: Principles & Practices
Definition: Depository institution that, until the mid-1970s, had the exclusive right to offer checking accounts
Federal Reserve Bank of Minneapolis
Definition: Bank that offers a broad range of deposit accounts, including checking, savings and time deposits and extends loans to individuals and businesses. Commercial banks can be contrasted with investment banking firms, such as brokerage firms, which generally are involved in arranging for the sale of corporate or municipal securities.
Federal Reserve Bank of San Francisco
Definition: Bank that offers a broad range of deposit accounts, including checking, savings, and time deposits, and extends loans to individuals and businesses. Commercial banks can be contrasted with investment banking firms, such as brokerage firms, which generally are involved in arranging for the sale of corporate or municipal securities.
Related Term(s): Financial institution
Bureau of Economic Analysis (BEA)
Definition: Method used to estimate purchases of a commodity by intermediate or final users. The method generally begins with an estimate of the total supply of a commodity available for domestic uses; it then either attributes a fixed percentage of supply to an intermediate or final use, or it adjusts for intermediate purchases and attributes the residual to final uses.
Federal Reserve Bank of San Francisco
Definition: Enacted by Congress in 1977, the CRA encourages banks to help meet the credit needs of their communities for housing and other purposes, particularly in neighborhoods with low or moderate incomes, while maintaining safe and sound operations.
Federal Reserve Bank of San Francisco
Definition: description available for public inspection at each bank office indicating, on a map, the communities served by that office and the types of credit the bank is prepared to extend within the communities served.
Bureau of Labor Statistics (BLS)
Definition: When one nation’s opportunity cost of producing an item is less than another nation’s opportunity cost of producing that item. A good or service with which a nation has the largest absolute advantage (or smallest absolute disadvantage) is the item for which they have a comparative advantage.
Economics: Principles & Practices
Definition: Country’s ability to produce a given product relatively more efficiently than another country; production at a lower opportunity cost
Federal Reserve Bank of Cleveland
Definition: Describes the ability of a person, company or country to produce a good or service at a lower cost relative to other goods and services. Even though a country may have an absolute advantage over another country, it still will be better off specializing in the good or service in which it has a comparative advantage and trading for goods and services it doesn’t produce as efficiently.
Federal Reserve Bank of Minneapolis
Definition: Describes the ability of a person, company or country to produce a good or service at a lower cost relative to other goods and services. Even though a country may have an absolute advantage over another country, it still will be better off specializing in the good or service in which it has a comparative advantage and trading for goods and services it doesn’t produce as efficiently.
Bureau of Labor Statistics (BLS)
Definition: A term used to encompass the entire range of wages and benefits, both current and deferred, that workers receive out of their employment. In the Employment Cost Index compensation includes the employer’s cost of wages and salaries, plus the cost of providing employee benefits.
Related Term(s): Total compensation (Employment Cost Index)
Bureau of Economic Analysis (BEA)
Definition: Income accruing to employees as remuneration for their work for domestic production. It is the sum of wage and salary accruals and of supplements to wages and salaries. It includes compensation paid to the rest of the world and excludes compensation received from the rest of the world.
Federal Reserve Bank of Minneapolis
Definition: One of two categories of bidders on Treasury securities: competitive and noncompetitive. Competitive bidders are usually financial institutions.
Federal Reserve Bank of Cleveland
Definition: Competitive bidders purchase Treasury securities if their tenders are accepted, while noncompetitive bidders purchase securities at the price resulting from an auction. Competitive bidders are usually financial institutions.
Bureau of Labor Statistics (BLS)
Definition: The distinction between complete and incomplete income reporters is based in general on whether the respondent provided values for major sources of income, such as wages and salaries, self-employment income, and Social Security income. Even complete income reporters may not have provided a full accounting of all income from all sources. In the current survey, across-the-board zero income reporting was designated as invalid, and the consumer unit was categorized as an incomplete reporter. In all tables, income data are for complete income reporters only.
Federal Reserve Bank of Cleveland
Definition: The Comptroller of the Currency is an officer of the Treasury Department responsible for chartering national banks and has primary supervisory authority over them. All national banks are required to be members of the Federal Reserve System and are insured by the Federal Deposit Insurance Corporation.
Federal Reserve Bank of Minneapolis
Definition: The Comptroller of the Currency is an officer of the Treasury Department responsible for chartering national banks and has primary supervisory authority over them. All national banks are required to be members of the Federal Reserve System and are insured by the Federal Deposit Insurance Corporation.
Federal Reserve Bank of Cleveland
Definition: The Congressional Budget Office (CBO) was created by the Congressional Budget and Impoundment Control Act of 1974. The CBO’s mission is to provide the Congress with the objective, timely, nonpartisan analyses needed for economic and budget decisions and with the information and estimates required for the Congressional budget process. CBO prepares independent analyses and estimates relating to the budget and the economy and presents options and alternatives for the Congress to consider.
Federal Reserve Bank of San Francisco
Definition: A statutory body established by Congress in 1976. The Council, with 30 members who represent a broad range of consumer and creditor interests, advises the Federal Reserve Board on the exercise of its responsibilities under the Consumer Credit Protection Act and on other matters on which the Federal Reserve Board seeks its advice.
Federal Reserve Bank of Minneapolis
Definition: A statutory body established by Congress in 1976. The Council, with 30 members who represent a broad range of consumer and creditor interests, advises the Federal Reserve Board on the exercise of its responsibilities under the Consumer Credit Protection Act and on other matters on which the Federal Reserve Board seeks its advice.
Definition: An index of consumer optimism based on surveys of consumers’ attitudes about current and future economic conditions. One such index–the index of consumer sentiment–is constructed by the University of Michigan Survey Research Center. A similar index–the Consumer Confidence Index–is constructed by The Conference Board.
Federal Reserve Bank of San Francisco
Definition: A measurement of the cost of living determined by the Bureau of Labor Statistics
Definition: An index of the cost of living commonly used to measure inflation. The Bureau of Labor Statistics publishes the CPI-U, an index of consumer prices based on the typical market basket of goods and services consumed by all urban consumers during a base period, and the CPI-W, an index of consumer prices based on the typical market basket of goods and services consumed by urban wage earners and clerical workers during a base period. (BLS) See also inflation.
Federal Reserve Bank of Minneapolis
Definition: A measurement of the cost of living determined by the Bureau of Labor Statistics.
Related Term(s): Inflation
Related Term(s): Consumer confidence
Bureau of Labor Statistics (BLS)
Definition: A consumer unit comprises either: (1) all members of a particular household who are related by blood, marriage, adoption, or other legal arrangements; (2) a person living alone or sharing a household with others or living as a roomer in a private home or lodging house or in permanent living quarters in a hotel or motel, but who is financially independent; or (3) two or more persons living together who pool their income to make joint expenditure decisions. Financial independence is determined by the three major expense categories: Housing, food, and other living expenses. To be considered financially independent, at least two of the three major expense categories have to be provided by the respondent.
Definition:In principle, the value of goods and services purchased and used up during a given period by households and governments. In practice, the Bureau of Economic Analysis counts purchases of many long-lasting goods (such as cars and clothes) as consumption even though the goods are not used up. Consumption by households alone is also called consumer spending. See also national income and product accounts.
Related Term(s): National income and product accounts (NIPAs)
Bureau of Economic Analysis (BEA)
Definition: The charge for the using up of private and government fixed capital located in the United States. It is the decline in the value of the stock of fixed assets due to wear and tear, obsolescence, accidental damage, and aging. For general government and for nonprofit institutions that primarily serve individuals, CFC serves as a measure of the value of the current services of the fixed assets owned and used by these entities.
Federal Reserve Bank of San Francisco
Definition: An accounting method that allows member banks of the Federal Reserve a one-day lag when calculating their required reserves and reserves held as vault cash. Except for the one-day lag, assets and liabilities used in calculating reserves and required reserves are those of the same week.
Definition: Authority in law to enter into contracts or incur other obligations in advance of, or in excess of, funds available for that purpose. Although it is a form of budget authority, contract authority does not provide the funds to make payments. Those funds must be provided later, usually in a subsequent appropriation act (called a liquidating appropriation). Contract authority differs from a federal agency’s inherent authority to enter into contracts, which may be exercised only within the limits of available appropriations. See also appropriation act, budget authority, and obligation.
Related Term(s): Appropriation act, Budget authority, Obligation
Bureau of Labor Statistics (BLS)
Definition: PPI data are commonly used in escalating purchase and sales contracts. These contracts typically specify dollar amounts to be paid at some point in the future. It is often desirable to include an escalation clause that accounts for changes in input prices. For example, a long-term contract for bread may be escalated for changes in wheat prices by applying the percent change in the PPI for wheat to the contracted price for bread.
Bureau of Economic Analysis (BEA)
Definition: This measure–profits from current production–is the income that arises from current production, measured before income taxes, of organizations treated as corporations in the national income and product accounts (NIPAS). With several differences, this income is measured as receipts less expenses as defined in Federal tax law. Among these differences are: Receipts exclude capital gains and dividends received; expenses exclude bad debt, depletion, and capital losses; inventory withdrawals are valued at current cost; and depreciation is on a consistent accounting basis and valued at current replacement cost.
Related Term(s): Inventory valuation adjustment (IVA)
Federal Reserve Bank of Cleveland
Definition: A bank that accepts deposits of and performs banking services for other depository institutions.
Federal Reserve Bank of Cleveland
Definition: Another person who signs for a loan and assumes equal liability for it.
Bureau of Labor Statistics (BLS)
Definition: A Cost of Living Index measures differences in the price of goods and services, and allows for substitutions to other items as prices change. A Consumer Price Index measures a price change for a constant market basket of goods and services from one period to the next within the same city (or in the Nation). The CPI is not a true cost of living index and should not be used for place to place comparisons.
Definition: Birth place codes available in the CPS include; one code for the United States (fifty states and Washington DC); one code for Puerto Rico; one code for all other outlying areas of the United States (American Samoa, Guam, U.S. Virgin Islands, Northern Marinas, etc.); separate codes for 100 individual foreign countries or areas; residual codes for other cases (At Sea, etc.). People for whom no birthplace was provided were assigned a birthplace during the editing process based on several criteria. For example, the birthplace of a child might have been assigned based on the birthplace of it’s mother and/or father.
Definition: People born outside the United States (see Country of Birth) were asked the year they came to the United States to live. Persons in citizenship categories (2) to (5) (see Citizenship Status) for whom no year of entry was reported were assigned a value for ”Year of Entry” during the editing process based on other reported information.
Related Term(s): Consumer price index (CPI)
Federal Reserve Bank of Cleveland
Definition: A term coined by Joseph Schumpeter, an Austrian economist, in the 1950 book, Capitalism, Socialism, and Democracy, to describe the process that a capitalist economy constantly undergoes as it reshapes itself and bounces from one growth path to another. He wrote that capitalism was a system ”that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating the new one.”
Federal Reserve Bank of Cleveland
Definition: The promise to pay in the future in order to buy or borrow in the present. The right to defer payment of debt.
Definition: A sudden reduction in the availability of loans and other types of credit from banks and capital markets at given interest rates. The reduced availability of credit can result from many factors, including an increased perception of risk on the part of lenders, an imposition of credit controls, or a sharp restriction of the money supply. See also money supply.
Related Term(s): Money supply
Definition: A system of budgeting for federal credit activities that focuses on the cost of subsidies conveyed in federal credit assistance. The system was established by the Federal Credit Reform Act of 1990. See also credit subsidy.
Related Term(s): Credit subsidy
Federal Reserve Bank of Cleveland
Definition: A statistical system used to determine whether or not to grant credit by assigning numerical scores to various characteristics related to creditworthiness.
Definition: The estimated long-term cost to the federal government of a direct loan or loan guarantee. That cost is calculated on the basis of net present value, excluding federal administrative costs and any incidental effects on revenues or outlays. For direct loans, the subsidy cost is the net present value of loan disbursements minus repayments of interest and principal, adjusted for estimated defaults, prepayments, fees, penalties, and other recoveries. For loan guarantees, the subsidy cost is the net present value of estimated payments by the government to cover defaults and delinquencies, interest subsidies, or other payments, offset by any payments to the government, including origination and other fees, penalties, and recoveries. See also outlays, present value, and revenues.
Related Term(s): Outlays, Present value, Revenues
Economics: Principles & Practices
Definition: Nonprofit service cooperative that accepts deposits, makes loans, and provides other financial services
Federal Reserve Bank of San Francisco
Definition: Financial cooperative organization of individuals who have a common bond, such as a place of employment, residence, or membership in a labor union. Credit unions accept deposits from members, pay interest (in the form of dividends) on the deposits out of earnings, and use their funds mainly to provide consumer installment loans to members.
Federal Reserve Bank of Minneapolis
Definition: Financial cooperative organization of individuals who have a common bond, such as place of employment or residence or membership in a labor union. Credit unions accept deposits from members, pay interest (in the form of dividends) on the deposits out of earnings and use their funs to provide consumer installment loans to members.
Federal Reserve Bank of Cleveland
Definition: A creditor’s measure of a consumer’s past and future ability and willingness to repay debts.
Bureau of Economic Analysis (BEA)
Definition: Transactions in services between the residents of one country and the residents of another country. From the U.S. viewpoint, it consists of exports and imports of services between U.S. residents and foreign residents. It includes both trade within multinational companies (intrafirm trade in services) and trade between unaffiliated parties. It is one of two channels of delivery of services in international markets; the other is sales of services through foreign affiliates of multinational companies.
Federal Reserve Bank of Cleveland
Definition: An increase in the value of one currency relative to another currency. Appreciation occurs when, because of a change in exchange rates, a unit of one currency buys more units of another currency.
Federal Reserve Bank of Minneapolis
Definition: A decline in the value of one currency relative to another currency. Depreciation occurs when, because of a change in exchange rates, a unit of one currency buys fewer units of another currency.
Federal Reserve Bank of Cleveland
Definition: A deliberate upward adjustment in the official exchange rate established, or pegged, by a government against a specified standard, such as another currency or gold.
Definition: A measure of spending or revenues in a given year that has not been adjusted for differences in prices (such as inflation) between that year and a base year. See also nominal dollars.
Related Term(s): Nominal
Bureau of Economic Analysis (BEA)
Definition: Government net transfer receipts from businesses and from persons. These receipts largely consist of deposit insurance premiums, net insurance settlements, donations, fines, fees, certain penalty taxes, and excise taxes paid by nonprofit institutions serving households.
Definition: The net revenues that arise from a country’s international sales and purchases of goods and services plus net international transfers (public or private gifts or donations) and net factor income (primarily capital income from foreign property owned by residents of that country minus capital income from domestic property owned by nonresidents). The current-account balance differs from net exports in that it includes international transfers and net factor income. (BEA) See also net exports.
Related Term(s): Net exports
Bureau of Economic Analysis (BEA)
Definition: The market value of an item. It reflects prices and quantities of the period being measured.
Related Term(s): Chained-dollar estimate
Definition: The part of the federal budget surplus or deficit that results from cyclical factors rather than from underlying fiscal policy. This cyclical component reflects the way in which the surplus or deficit automatically increases or decreases during economic booms or recessions. (CBO) See also deficit, fiscal policy, and surplus; compare with standardized-budget surplus or deficit.
Related Term(s): Deficit, Fiscal policy, Standardized-budget surplus or deficit, Surplus