Financial Dictionary

This dictionary contains:
24549
financial terms

Currency




Currency

Money. The word currency mainly refers to the name and kind of money issued by each country.

RELATED TERMS
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Money
A means of payment, especially coins and banknotes, although some definitions also include bank deposits, checks, etc.

Currency
Money. The word currency mainly refers to the name and kind of money issued by each country.



SIMILAR TERMS
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Currency appreciation
An increase in the value of one currency relative to another currency.

Currency arbitrage
Taking advantage of divergences in exchange rates in different money markets by buying a currency in one market and selling it in another market.

Currency basket
The value of a portfolio of specific amounts of individual currencies, used as the basis for setting the market value of another currency.

Currency call option
Contract that gives the holder the right to purchase a specific currency at a specified price (exchange rate) within a specific period of time.

Currency depreciation
A decline in the value of one currency relative to another currency.

Currency devaluation
A deliberate downward adjustment in the official exchange rates established, or pegged, by a government against a specified standard, such as another currency or gold.

Currency exchange risk
Uncertainty about the rate at which revenues or costs denominated in one currency can be converted into another currency.

Currency forex online trading
The practice of buying and selling foreign currency online to obtain a benefit based in the currency value oscillations.

Currency future
A financial future contract for the delivery of a specified foreign currency.

Currency futures contract
Contract specifying a standard volume of a particular currency to be exchanged on a specific settlement date.

Currency in circulation
Paper money, coins, and demand deposits that constitute all the money circulating in the economy.

Currency option
An option to buy or sell a foreign currency.

Currency overvaluation
Applies mainly to international equities: 1) consideration that a currency is overvalued if private demand for the currency at the going exchange rate is less than total private supply. 2) currency value exceeding purchasing power parity.

Currency put option
Contract that gives the holder the right to sell a particular currency at a specified price (exchange rate) within a specified period of time.

Currency risk sharing
An agreement by the parties to a transaction to share the currency risk associated with the transaction.

Currency selection
Asset allocation in which the investor chooses among investments denominated in different currencies.

Current account
Net flow of goods, services, and unilateral transactions (gifts) between countries.

Current account balance
The difference between the nation's total exports of goods, services and transfers and its total imports of them.

Current assets
Value of cash, accounts receivable, inventories, marketable securities and other assets that could be converted to cash in less than 1 year.

Current coupon
A bond selling at or close to par, that is, a bond with a coupon close to the yields currently offered on new bonds of a similar maturity and credit risk.

Current dollar
Refers to the use of actual or real prices and costs. Escalation or inflation effects are included.

Current income
Regular series of cash flows that is routinely received from investments in the form of dividends, interest, and other income sources.

Current income bonds
Bonds paying semiannual interest to holders. Interest is not included in the accrued discount.

Current issue
In Treasury securities, the most recently auctioned issue. Trading is more active in current issues than in off-the-run issues.

Current liabilities
Amount owed for salaries, interest, accounts payable and other debts due within 1 year.

Current market value
The value of a client's portfolio at today's market price, as listed in a brokerage statement.

Current maturity
Current time to maturity on an outstanding debt instrument.

Current mortgage rate
Interest rates currently applying to mortgage loans.

Current order
In the context of periodic repayment schedules, the next periodic principal repayment.

Current production rate
The highest interest rate permissible on current Government National Mortgage Association, mortgage-backed securities.

Current rate method
The translation of all foreign currency balance sheet and income statement items at the current exchange rate.

Current ratio
Indicator of short-term debt-paying ability. Determined by dividing current assets by current liabilities. The higher the ratio, the more liquid the company.

Current yield
For bonds or notes, the coupon rate divided by the market price of the bond.

Current/noncurrent method
The translation of all of a foreign subsidiary's current assets and liabilities into home currency at the current exchange rate while noncurrent assets and liabilities are translated at the historical exchange rate.



PREVIOUS AND NEXT TERMS
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Cumulative probability distribution
A function that shows the probability that the random variable will attain a value less than or equal to each value that the random variable can take on.

Cumulative total return
The actual performance of a fund over a particular period.

Cumulative Translation Adjustment (CTA) account
An entry in a translated balance sheet in which gains and/or losses from translation have been accumulated over a period of years.

Cumulative voting
A system of voting for directors of a corporation in which shareholder's total number of votes is equal to the number of shares held times the number of candidates.

Cure
To make good a default.

Currency

Currency appreciation
An increase in the value of one currency relative to another currency.

Currency arbitrage
Taking advantage of divergences in exchange rates in different money markets by buying a currency in one market and selling it in another market.

Currency basket
The value of a portfolio of specific amounts of individual currencies, used as the basis for setting the market value of another currency.

Currency call option
Contract that gives the holder the right to purchase a specific currency at a specified price (exchange rate) within a specific period of time.

Currency depreciation
A decline in the value of one currency relative to another currency.

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This dictionary contains 24549 terms.







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