Monetary Aggregates
What are Monetary Aggregates? Monetary aggregates are measures of the money stock in a country. Central banks measure money aggregates and present them in the form of end-of-month national currency stock series. In the U.S., monetary aggregates are conventionally labeled as M0, M1, M2, and M3. The categories come with different definitions, as follows: M0: The sum of...
Monetize
What Does Monetize Mean? The word “monetize” is used to refer to the process of converting an item into cash. In the banking sector, monetize may be used to mean the process of turning an asset into legal tender. It can also be used informally to mean the exchange of possession for a cash equivalent...
Money Flow
What is Money Flow? Money flow is a technical indicator used to assess the future movement of prices based on demand and supply. It is used to construct the difference between uptick and downtick dollar trading volume. Money flow, whether flowing in or out, indicates the current excess supply or demand. Traders determine whether the...
Home Bias
What is Home Bias? Home bias, which might more appropriately be termed home country bias, refers to the tendency of equity investors to favor investing in domestic stocks over investing in the stocks of foreign companies. The overwhelming majority of investors exhibit a high degree of home bias, which can be seen in the high...
Defined-Benefit Plan
What is a Defined-Benefit Plan? A defined-benefit plan is an employer-promised specified/pre-determined pension payment plan that can be received in a lump sum, periodically, or both. The payment plan is “defined” in advance and based on the employee’s earnings history, tenure, and age – not solely on the individual investment returns. For most...
