Quantitative easingThis is a policy used by authorities in extreme circumstances to ease pressure placed on banks. The authorities buy bonds from the banks and from the commercial sector to make sure banks have enough cash to continue operating. |
QuotaThis is a limit set by a government on how much of a product can be imported and exported. |
Rate of returnThis is represented as a percentage and is the annual income an investment makes back. |
Real interest rateThe rate of interest minus the current rate of inflation. |
Real valuesReal values show how relative particular prices are to prices in general. They are adjusted according to inflation. |
RecessionA period of severe economic decline. Defined by a contraction of GDP for six months or longer. |
Return on investmentThe earning power of an asset or activity measured as a ratio of the net income of the activity to the operational cost. Return on investment (ROI) lets a company know whether an activity is profitable enough to continue. |
Revenue.Amounts of money received by (or owed to) a company for goods or services provided. |
Share indexTracks the value of shares on the exchange to demonstrate their performance. |
Share optionsA right to buy shares in a company in the future, at a favourable price, in addition to a regular salary if the person meets specific performance targets or predetermined criteria. |