Glossary

Financial glossary

Plain-language definitions of common financial terms.

Policy rate

A benchmark interest rate used by a central bank in the implementation of monetary policy.

A rate implied by a bond's market price and expected cash flows.

A decline from a previous peak value.

The degree to which exposure depends on a narrow group of holdings, sectors or factors.

The price of one currency expressed in another currency.

The amount of goods and services a unit of money can purchase.

A sustained increase in the general price level across an economy over time.