5 financial glossaries
1. Law of supply and demand: (供求定理)
Definition: This says, most simply, that prices depend on supply and demand. More precisely, price is determined so as to equate quantities supplied and demanded. Even more precisely, a price tends to rise when demand exceeds supply, and vice versa.
2. Liquid asset:(流动资金,速动资产)
Definition: A type of asset that can be easily converted into cash.
3. Deflation: (通货紧缩)
Definition: A decline in general price levels, often caused by a reduction in the supply of money or credit. Deflation can also be brought about by direct contractions in spending, either in the form of a reduction in government spending, personal spending or investment spending. Deflation has often had the side effect of increasing unemployment in an economy, since the process often leads to a lower level of demand in the economy. opposite of inflation.
4. Inflation:(通货膨胀)
Definition: The overall general upward price movement of goods and services in an economy (often caused by a increase in the supply of money), usually as measured by the Consumer Price Index and the Producer Price Index. Over time, as the cost of goods and services increase, the value of a dollar is going to fall because a person won't be able to purchase as much with that dollar as he/she previously could. While the annual rate of inflation has fluctuated greatly over the last half century, ranging from nearly zero inflation to 23% inflation, the Fed actively tries to maintain a specific rate of inflation, which is usually 2-3% but can vary depending on circumstances. opposite of deflation.
5. Excess capacity:(超额生产能力)
Definition: Output volume at which marginal cost is less than the average cost and, hence, where it is possible to decrease average cost by increasing the output. Excess capacity may be measured by the amount of additional output that will reduce the average cost to a minimum.