a record of the country's transactions with the rest of the world. Its shows the country's payments to or deposits in other countries (debits) and its receipts or deposits from other countries (credits) and the balance between them.
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balance of payments on current account
the balance on trade in goods and services plus net investment income and current transfers
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balance on trade in goods
exports of goods minus imports in goods
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balancing item (in balance of payments)
a statistical adjustment to ensure that the two sides of the balance of payments account balance
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bank bills
bills that have been accepted by another institution and hence insured against default
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bank (or deposits) multiplier
the number of times greater the expansion of bank deposits is than the additional liquidity in banks that causes it 1/L (the inverse of the liquidity ratio)
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barometric firm price leadership
where the price leader is the one whose prices are believed to reflect market conditions in the most satisfactory way
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barriers to entry
anything that prevents or impedes the entry of firms into an industry and thereby limits the amount of competition faced by existing firms
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barter economy
an economy where people exchange goods and services directly with one another without any payment of money
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base year (for index years)
the year whose index number is set at 100
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basic rate of tax
the main marginal rate of tax, applying to most people's incomes
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benefits in kind
goods or services which the state provides directly to the recipient at no charge or at a subsidised price
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bilateral monopoly
where a monopsony buyer faces a monopoly seller
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bill of exchange
a certificate promising to repay a stated amount on a certain date, typically three months from the issue of the bill
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Bretton Woods system
an adjustable peg system whereby currencies were pegged to the US dollar. The USA maintained convertibility of the dollar into gold at the rate of $35 to an ounce
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broad definitions of money
items in narrow definitions plus items that can be readily converted into cash
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broad money in UK (M4)
cash in circulation plus retail and wholesale bank and building society deposits
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budget deficit
the excess of central governments spending over its tax receipts
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budget surplus
the excess of central government's tax receipts over its spending
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business cycle
the periodic fluctuations of national output round its long term trend
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Other cards in this set
Card 2
Front
the balance on trade in goods and services plus net investment income and current transfers
Back
balance of payments on current account
Card 3
Front
exports of goods minus imports in goods
Back
Card 4
Front
a statistical adjustment to ensure that the two sides of the balance of payments account balance
Back
Card 5
Front
bills that have been accepted by another institution and hence insured against default
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