Financial Terms | |
Speculative motive |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: financial advisor, stock trading, investment, finance, tax advisor, money, inventory control, accounting, |
Definition of Speculative motiveSpeculative motiveA desire to hold cash for the purpose of being in a position to exploit any attractive
Related Terms:Precautionary motiveA desire to hold cash in order to be able to deal effectively with unexpected events Speculative demand (for money)The need for cash to take advantage of investment opportunities that may arise. Speculative grade bondBond rated Ba or lower by Moody's, or BB or lower by S&P, or an unrated bond. Transactions motiveA desire to hold cash for the purpose of conducting cash based transactions. Precautionary demand (for money)The need to meet unexpected or extraordinary contingencies with a At-the-moneyAn option is at-the-money if the strike price of the option is equal to the market price of the Call money rateAlso called the broker loan rate , the interest rate that banks charge brokers to finance Demand depositsChecking accounts that pay no interest and can be withdrawn upon demand. Demand line of creditA bank line of credit that enables a customer to borrow on a daily or on-demand basis. Demand master notesShort-term securities that are repayable immediately upon the holder's demand. Demand shockAn event that affects the demand for goods in services in the economy. Hedging demandsdemands for securities to hedge particular sources of consumption risk, beyond the usual Hot moneymoney that moves across country borders in response to interest rate differences and that moves In-the-moneyA put option that has a strike price higher than the underlying futures price, or a call option Money baseComposed of currency and coins outside the banking system plus liabilities to the deposit money banks. Money center banksBanks that raise most of their funds from the domestic and international money markets, relying less on depositors for funds. Money managementRelated: Investment management. Money managerRelated: Investment manager. Money marketmoney markets are for borrowing and lending money for three years or less. The securities in Money market demand accountAn account that pays interest based on short-term interest rates. Money market fundA mutual fund that invests only in short term securities, such as bankers' acceptances, Money market hedgeThe use of borrowing and lending transactions in foreign currencies to lock in the Money market notesPublicly traded issues that may be collateralized by mortgages and MBSs. Money purchase planA defined benefit contribution plan in which the participant contributes some part and Money rate of returnAnnual money return as a percentage of asset value. Money supplyM1-A: Currency plus demand deposits New moneyIn a Treasury auction, the amount by which the par value of the securities offered exceeds that of Out-of-the-money optionA call option is out-of-the-money if the strike price is greater than the market price Time value of moneyThe idea that a dollar today is worth more than a dollar in the future, because the dollar Transaction demand (for money)The need to accommodate a firm's expected cash transactions. Variable rated demand bond (VRDB)Floating rate bond that can be sold back periodically to the issuer. Money MarketA market that specializes in trading short-term, low-risk, very liquid money marketMarket for short-term financial assets. Aggregate DemandTotal quantity of goods and services demanded. Aggregate Demand CurveCombinations of the price level and income for which the goods and services market is in equilibrium, or for which both the goods and services market and the money market are in equilibrium. DemandAn amount desired, in the sense that people are willing and able to pay to obtain this amount. Always associated with a given price. Demand DepositA bank deposit that can be withdrawn on demand, such as a deposit in a checking account. Demand Management PolicyFiscal or monetary policy designed to influence aggregate demand for goods and services. Demand-Pull InflationInflation whose initial cause is excess demand rather than cost increases. See also cost-push inflation. Excess DemandA situation in which demand exceeds supply. High-Powered MoneySee money base. MoneyAny item that serves as a medium of exchange, a store of value, and a unit of account. See medium of exchange. Money BaseCash plus deposits of the commercial banks with the central bank. Money MarketA financial market in which short-term (maturity of less than a year) debt instruments such as bonds are traded. Money MultiplierChange in the money supply per change in the money base. Money Rate of InterestSee interest rate, nominal. Neutrality of MoneyThe doctrine that the money supply affects only the price level, with no long-run impact on real variables. Printing MoneySale of bonds by the government to the central bank. Quantity Theory of MoneyTheory that velocity is constant, and so a change in money supply will change nominal income by the same percentage. Formalized by the equation Mv = PQ. Real Money Supplymoney supply expressed in base-year dollars, calculated by dividing the money supply by a price index. Warehouse demandThe demand for a part by an outlying warehouse. Fiat MoneyFiat money is paper currency made legal tender by law or fiat. It is not backed by gold or silver and is not necessarily redeemable in coin. This practice has had widespread use for about the last 70 years. If governments produce too much of it, there is a loss of confidence. Even so, governments print it routinely when they need it. The value of fiat money is dependent upon the performance of the economy of the country which issued it. Canada's currency falls into this category. Money LaunderingThis is the process by which "dirty money" generated by criminal activities is converted through legitimate businesses into assets that cannot be easily traced back to their illegal origins. Demand LoanA loan which must be repaid in full on demand. Money MarketFinancial market in which funds are borrowed or lent for short periods. (The money market is distinguished from the capital market, which is the market for long term funds.) money market fundA type of mutual fund that invests primarily in short-term debt securities maturing in one year or less. These include treasury bills, bankers’ acceptances, commercial paper, discount notes and guaranteed investment certficates. money orderA guaranteed form of payment in amounts up to and including $5,000. You might request a money order in order to pay for tuition fees at a university or a college, or for a magazine subscription. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |