Bureau of Labor Statistics (BLS)
Definition: Race is determined by the household respondent. The CPS collects data for 4 race groups, white, black, Asian and Pacific Islander, and American Indian and Alaskan Natives. Only data for Whites and blacks are currently published because the sample size for the other races is not large enough to produce statistically reliable estimates. The CPS program plans to introduce revised race categories beginning in 2003.
Definition: The race of individuals was identified by a question that asked for self-identification of the person’s race. Respondents were asked to select their race from a ”flashcard” listing racial groups. The population is divided into five groups on the basis of race: White; Black; American Indian, Eskimo or Aleut; Asian or Pacific Islander; and Other races beginning with March 1989. The last category includes any other race except the four mentioned. In most of the published tables ”Other races” are included in the total population data line but are not shown individually.
Rate sheet
Ration coupon
Rationing
Raw materials
Real
Definition: Adjusted to remove the effects of inflation. Real output represents the quantity, rather than the dollar value, of goods and services produced. Real income represents the power to purchase real output. Real data at the finest level of disaggregation are constructed by dividing the corresponding nominal data, such as spending or wage rates, by a price index. Real aggregates, such as real GDP, are constructed by a procedure that allows the real growth of the aggregate to reflect the real growth of its components, appropriately weighted by the importance of the components. A real interest rate is a nominal interest rate adjusted for expected inflation; it is often approximated by subtracting an estimate of the expected inflation rate from the nominal interest rate. Compare with nominal and current dollar.
Related Term(s): Current dollar, Nominal
Real dollars
Real estate investment trust (REIT)
Real GDP
Economics: Principles & Practices
Definition: Gross Domestic Product after adjustments for inflation; same as GDP in constant dollars
Federal Reserve Bank of Cleveland
Definition: GDP adjusted for inflation. Real GDP provides the value of GDP in constant dollars.
Federal Reserve Bank of Minneapolis
Definition: Interest rates adjusted for the expected erosion of purchasing power resulting from inflation. Technically defined as nominal interest rates minus the expected rate of inflation.
Related Term(s): Revenue
Definition: An account established within federal funds and trust funds to record offsetting receipts or revenues credited to the fund. See also federal funds, offsetting receipts, revenues, and trust funds.
Related Term(s): Federal funds, Offsetting receipts, Revenues, Trust funds
Office of Management and Budget
Definition: Receipts are the collections of money that primarily result from taxes and similar government powers to compel payment. Examples of receipts include income taxes, payroll taxes, excise taxes, and customs duties. They do not include collections from the federal government’s business-like activities, such as the entrance fees at national parks. Business-like collections are subtracted from total spending to calculate outlays for the year.
Economics: Principles & Practices
Definition: Decline in real GDP lasting at least two quarters or more
Definition: A phase of the business cycle extending from a peak to the next trough and characterized by a substantial decline in overall business activity–output, income, employment, and trade–of at least several months’ duration. As a rule of thumb, though not an official measure, recessions are identified by a decline in real gross domestic product for at least two consecutive quarters. (NBER) See also business cycle, gross domestic product, and real; compare with expansion.
Federal Reserve Bank of Cleveland
Definition: A significant decline in general economic activity extending over a period of time.
Bureau of Economic Analysis (BEA)
Definition: An adjustment made to the input-output (I-O) accounts when there are two or more industries whose primary activity is the production of similar commodities and the commodities differ only in the process used to produced them. The output of one commodity is moved (“reclassified”) to be part of the output of the other, similar commodity. Total output for the affected industry remains unchanged; however, output for each affected commodity group changes.
Definition: A phase of the business cycle that lasts from a trough until overall economic activity returns to the level it reached at the previous peak. (NBER) See also business cycle.
Related Term(s): Business cycle
Bureau of Economic Analysis (BEA)
Definition: An adjustment made to the input-output (I-O) accounts when a secondary product is assumed to have very different inputs than the other products of the producing industry. The secondary product (output and inputs) is moved (“redefined”) to the industry to which the product is primary. The adjustment is necessary to attain a homogenous input structure for the commodities produced by an I-O industry.
Definition: The reference person is the person to whom the relationship of other people in the household is recorded. The household reference person is the person listed as the householder (see definition of ”Householder”). The subfamily reference person is either the single parent or the husband/wife in a married-couple situation.
Related Term(s): Householder
Definition: The four major regions of the United States for which data are presented represent groups of States as follows: Northeast. Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont. Midwest. Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin. South. Alabama, Arkansas, Delaware, District of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, West Virginia. West. Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, Wyoming. Sunbelt. Consists of 13 states plus one county in Nevada and nine counties in California. The states that are entirely inside the Sunbelt are: North Carolina, South Carolina, Georgia, Florida, Alabama, Mississippi, Louisiana, Tennessee, Arkansas, Oklahoma, Texas, New Mexico, and Arizona. Also included are Clark County, Nevada, and Imperial, Kern, Los Angeles, Orange, Riverside, San Bernardino, San Diego, Santa Barbara, and Ventura Counties in California.
Internal Revenue Service (IRS)
Definition: A tax that takes a larger percentage of income from low-income groups than from high-income groups.
Economics: Principles & Practices
Definition: Tax where the percentage of income paid in tax goes down as income rises
Related Term(s): Progressive tax
Federal Reserve Bank of Cleveland
Definition: A type of variable rate involving a renewable short-term ”balloon” note. The interest rate on the loan is generally fixed during the term of the note, but when the balloon comes due, the lender may refinance it at a higher rate. In order for the loan to be fully amortized, periodic refinancing may be necessary.
Federal Reserve Bank of Minneapolis
Definition: A type of variable rate involving a renewable short- term “balloon” note. The interest rate on the loan is generally fixed during the term of the note, but when the balloon comes due, the lender may refinance it at a higher rate. In order for the loan to be fully amortized, periodic refinancing may be necessary.
Federal Reserve Bank of San Francisco
Definition: A type of variable loan rate involving a renewable short-term ‘balloon’ note. The interest rate on the loan is generally fixed during the term of the note, but when the balloon comes due, the lender may refinance it at a higher rate. In order for the loan to be fully amortized, periodic refinancing may be necessary. Also see balloon payment.
Bureau of Economic Analysis (BEA)
Definition: Earnings from the rental of real property by persons who are not primarily engaged in the real estate business. It also includes the imputed net rental income of owner-occupants and the royalties received by persons from patents, copyrights, and rights to natural resources.
SSI Annual Statistical Report, 2002
Definition: A person designated by the Social Security Administration to receive monthly benefit checks on behalf of an adult beneficiary who is unable to manage his or her own funds. A beneficiary under age 18 is generally considered incapable of managing benefit payments, and a representative payee will be selected to receive benefits on the beneficiary’s behalf.
Repurchase agreement
Repurchase agreements
Federal Reserve Bank of Minneapolis
Definition: An agreement by which, for example, the Federal Reserve purchases a security for immediate delivery and receives interest at a specific rate from a government securities dealer, with an agreement to sell the security back at the same price by a specific date (usually within 15 days). This arrangement allows the Federal Reserve to inject reserves into the banking system on a temporary basis to meet a temporary need and to withdraw these reserves as soon as that need has passed.
Federal Reserve Bank of San Francisco
Definition: An agreement by which, for example, the Federal Reserve purchases a security for immediate delivery and receives interest at a specific rate from a government securities dealer, with an agreement to sell the security back at the same price by a specific date (usually within 15 days). This arrangement allows the Federal Reserve to inject reserves into the banking system on a temporary basis to meet a temporary need and to withdraw these reserves as soon as that need has passed.
Required clearing balance
Federal Reserve Bank of San Francisco
Definition: Amount kept by a depository institution in an account at a Federal Reserve Bank, in addition to its required reserve balance, to ensure that it can meet its daily transaction obligations without overdrawing its required reserve account and thereby incurring a penalty. Required clearing balances earn credits that can be used to pay for services provided by the Federal Reserve.
Required reserve balance
Required reserves
Federal Reserve Bank of Minneapolis
Definition: Funds that a depository institution is required to maintain as vault cash or on deposit with a Federal Reserve Bank; required amount varies according to required reserve ratios set by the Board of Governors and the volume of reservable liabilities held by the institutions.
Federal Reserve Bank of San Francisco
Definition: Funds that a depository institution is required to maintain as vault cash or on deposit with a Federal Reserve Bank; required amount varies according to required reserve ratios set by the Board of Governors and the volume of reservable liabilities held by the institution.
Reserve district
Reserve requirement
Reserve requirements
Federal Reserve Bank of Cleveland
Definition: Reserves that must be held against customer deposits of banks and other depository institutions. The reserve requirement ratio affects the expansion of deposits that can be supported by each additional dollar of reserves. The Board of Governors sets reserve requirements within limits specified by law for all depository institutions (including commercial banks, savings banks, savings and loan associations, credit unions, some industrial loan banks, and U.S. agencies and branches of foreign banks) that have transaction accounts or nonpersonal time deposits. A lower reserve requirement allows more deposit and loan expansion and a higher reserve ratio permits less expansion.
Federal Reserve Bank of Minneapolis
Definition: Requirements set by the Fed Board of Governors for the amounts that certain financial institutions must set aside in the form of reserves. Reserve requirements act as a control on the expansion of money and credit and may be raised or lowered within limits specified by law (lowering reserve requirements allows more bank lending and money growth; raising requirements, less lending and money growth).
Federal Reserve Bank of Cleveland
Definition: Required reserves are funds set aside by depository institutions to meet the reserve requirements established by the country’s monetary authority. Banks cannot lend out the total amount of their deposits but must keep a percentage on hand to back up potential depositor requests for their deposits. Bank reserves refers to the currency a bank keeps on hand (in its vault or as a deposit at another bank) to handle day-to-day transactions such as depositor requests for cash.
Federal Reserve Bank of Minneapolis
Definition: A depository institution’s vault cash (up to the level of its required reserves) plus balances in its reserve account (not including funds applied to its required clearing balance). Includes: (1) required reserves, or funds that a depository institution is required to maintain as vault cash or on deposit with a Federal Reserve Bank; required amount varies according to required reserve ratios set by the Board of Governors and the volume of reservable liabilities held by the institutions; (2) required reserve balance, portion of its required reserves that a depository institution must hold in an account at a Federal Reserve Bank; (3) excess reserves, amount of reserves held by an institution in excess of its reserve requirement and required clearing balance.
Residence, duration of (voting supplements)
Bureau of Economic Analysis (BEA)
Definition: Investment in residential structures consists of new construction of permanent-site single-family and multi-family units, improvements (additions, alterations, and major structural replacements) to housing units, expenditures on manufactured homes, brokers’ commissions on the sale of residential property, and net purchases of used structures from government agencies. Residential structures also include some types of equipment that are built into residential structures, such as heating and air-conditioning equipment.
Related Term(s): Fixed investment, Residential fixed investment
Citizen’s Guide to the Federal Budget
Definition: This is another word for receipt. Revenues include the collections that result from Government activity, such as taxes. They do not include collections that result from the Government’s business-like activities, such as the entrance fees at national parks. Business-like collections are subtracted from total spending to calculate outlays for the year.
Definition: Funds collected from the public that arise from the government’s exercise of its sovereign or governmental powers. Federal revenues consist of individual and corporate income taxes, excise taxes, and estate and gift taxes; contributions to social insurance programs (such as Social Security and Medicare); customs duties; fees and fines; and miscellaneous receipts, such as earnings of the Federal Reserve System, gifts, and contributions. Federal revenues are also known as federal governmental receipts. Compare with offsetting collections and offsetting receipts.
Related Term(s): Offsetting collections, Offsetting receipts
Related Term(s): Open-end credit
Bureau of Economic Analysis (BEA)
Definition: Estimates of regional input-output multipliers for any state, county, or combination of states or counties. The multipliers estimate the impact from changes in final demand on one or more regional industries in terms of output, employment, and labor earnings. The multipliers are based on estimates of local area personal income and on the national input-output (I-O) accounts.
Definition: The additional return that investors require to hold assets whose returns are more variable than those of riskless assets. The risk can arise from many sources, such as the possibility of default (in the case of corporate or municipal debt), the volatility of earnings (in the case of corporate equities), or changes in interest rates.