Moldova State University

Faculty of Economic Sciences

Glossary of Economic Terms

Student: Ciobanu Zinaida

Groupe: FB2001
A

Advertising- a business that makes things known generally or in public, esp. in

order to sell them.
Arbitrage- the method on the stock exchange of buying something in one place
and selling it in another place at the same time, in order to make a profit from the
difference in price in the two places
Auctions- a public sale in which goods or property are sold to the person who
offers the most money
Average- the result you get by adding two or more amounts together and dividing
the total by the number of amounts.
Amortisation- the process of reducing a cost or total in regular small amounts
Appreciation- the act of recognizing or understanding that something is valuable,
important, or as described

Backwardation- a situation in which the price of a commodity (= a product,

such as oil or a metal, that is traded in large quantities) is lower if the buyer is to
receive the commodity at a future date than it is if the buyer receives it
immediately
Bankruptcy - the inability to pay your debts, or a particular example of
this, involving the sale of your property or some other arrangement to pay
as much as possible of the money you owe
Bear - An investor who thinks that the price of a particular security or
class of securities (shares, say) is going to fall; the opposite of a bull.
Banks- A company that accepts deposits and issues new loans. It
makes profit by charging more interest for the loans than it pays on the
deposits, as well as through various service charges. By issuing new
loans (or credit), banks create new money which is essential to
promoting economic growth and job creation
Barter- A form of trade in which one good or service is exchanged
directly for another, without the use of money as an intermediary
Banks- A company that accepts deposits and issues new loans. It
makes profit by charging more interest for the loans than it pays on the
deposits, as well as through various service charges.
Bond- A financial security which represents the promise of its issuer
(usually a company or a government) to repay a loan over a specified
time period, at a specified rate of interest.
Balance of payments- this is the record of a country’s international
financial transactions

C
Capital-money and possessions, especially a large amount of money used for
producing more wealth or for starting a new business
Central bank- the main bank in a country which issues notes and coins
and implements monetary policy.
Competition-the process by which firms selling similar products in the same
market achieve a larger share of the market
Current private transfers- transfers of money by individuals and firms to other
countries. It is part of the balance of payments on current account.
Consumer - A member of a household that spends on goods and services.

D
Debt- something, especially money, that is owed to someone else, or the
state of owing something

Deflation- the action of making something smaller by removing the air from
inside it; the fact of becoming smaller in this way

Demand- to ask for something forcefully, in a way that shows that you do
not expect to be refused
Depression- a period in which there is very little business activity and not
many jobs
Duopoly- a situation in which only two companies control all the business
in a particular industry

Entrepreneurship- skill in starting new businesses, especially when

this involves seeing new opportunities
Equity- the value of a company, divided into many equal parts owned by
the shareholders, or one of the equal parts into which the value of a
company is divided