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Discount Window

What Is A Discount Window? The discount window is the mechanism through which central banks lend short-term money to the commercial banks under their authority, both to provide liquidity to…



Liquidity is the ability of an asset or security to be readily converted into cash. In active trading and finance, high degrees of liquidity are desirable. Liquid markets promote efficient…

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Modern Monetary Theory

What Is Modern Monetary Theory? Modern monetary theory (MMT) is a school of economic thought that essentially posits that governments can run large budget deficits without much concern because they…


CAPE Ratio

What Is The CAPE Ratio? The cyclically-adjusted price-to-earnings (CAPE) ratio is a variation on the standard price-to-earnings (PE) ratio that seeks to determine if stocks are in a bubble. While…


Wall Of Worry

What Is The Wall Of Worry? The "wall of worry" refers to a tendency in financial markets for stocks to rise in the face of seemingly difficult or insurmountable problems.…


Asset-Backed Security

What Is An Asset-Backed Security? Asset-backed securities (ABS) are fixed-income instruments similar to bonds that are collateralised by a pool of loans, the payments on which are channeled to the…


Reserve Currency

What Is A Reserve Currency? A reserve currency is a currency that is widely accepted around the world as a method of payment between countries for goods and services. Reserve…


Target Date Funds

What Is A Target Date Fund? A target date fund is a mutual fund designed for retirement that automatically rebalances the fund's assets as the investors in the fund draw…


The Glass-Steagall Act

The Glass-Steagall Act was a 1933 U.S. law signed by President Franklin Roosevelt shortly after he took office that effectively separated commercial banking from investment banking. The act is named…



An economic and monetary area of 18 European countries using the euro as the common currency.


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