Economics for Finance Financial Terms & Definitions

25 terms in this topic

Economics for Finance is a glossary category that provides definitions for key economic concepts relevant to finance, such as supply and demand, inflation, interest rates, and gross domestic product. These terms help explain how economic forces influence asset prices, investment strategies, and financial system behavior.

B

Business cycle

The business cycle—also called the economic cycle or trade cycle—refers to the natural, recurring fluctuations in economic activity that an…

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D

Deflation

Deflation is a general decline in prices for goods and services, occurring when the inflation rate falls below 0%. While…

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E

Elasticity

Elasticity is an economic concept that measures how much one economic variable changes in response to a change in another.…

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E

Expansion

Expansion is a phase of the business cycle where the economy grows for two or more consecutive quarters. It is…

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Aggregate demand Aggregate demand (AD) is the total amount of goods and services that all buyers in an economy (consumers,… Aggregate supply Aggregate supply (AS) is the total quantity of goods and services that all firms in an economy are… Business cycle The business cycle—also called the economic cycle or trade cycle—refers to the natural, recurring fluctuations in economic activity… Comparative advantage Comparative advantage is a fundamental economic theory that explains how countries, businesses, or individuals can benefit from trade,… Core inflation Core inflation is a measure of inflation that excludes the prices of food and energy. These categories are… CPI (Consumer Price Index) The Consumer Price Index (CPI) is a key economic indicator that measures the average change over time in… Deflation Deflation is a general decline in prices for goods and services, occurring when the inflation rate falls below… Elasticity Elasticity is an economic concept that measures how much one economic variable changes in response to a change… Exchange rate An exchange rate is the price of one country’s currency expressed in terms of another country’s currency. It… Expansion Expansion is a phase of the business cycle where the economy grows for two or more consecutive quarters.… Gross Domestic Product (GDP) Gross Domestic Product (GDP) is the total monetary value of all finished goods and services produced within a… Inflation Inflation is the rate at which the general level of prices for goods and services rises over a…