Disbursement
What is a Disbursement? A disbursement is an act of paying out money – especially from a public or dedicated fund. It often refers to the payment made for a client to a third party, as reimbursement will be sought from the client subsequently. Disbursement leads to cash outflows. If disbursements are higher than revenues...
Decoupling
What is Decoupling? Decoupling represents the creation of gaps. In finance, decoupling happens when different asset classes or markets that typically demonstrate positive correlations start to move in opposite directions. In organizational studies, decoupling takes place when there are gaps between formal policies and actual practices in an organization. Eco-economic decoupling considers the environmental impacts...
Devaluation
What is Devaluation? Devaluation is a downward adjustment to a country’s value of money relative to a foreign currency or standard. Many countries that operate using a fixed exchange rate tend to use devaluation as a monetary policy tool to control supply and demand. Why Devaluation Happens (Pros) Devaluation happens due to the following: To...
Dirty Price
What is Dirty Price? Dirty price is when a bond price includes interest that has accrued since the latest coupon payment. When investors buy fixed-income securities, such as bonds, they expect to receive coupon payments based on a fixed schedule. However, the price of a bond is dependent on the present value of future coupon...
Demand Shock
What is a Demand Shock? A demand shock is a sudden and temporary increase or decrease in the demand for a good or a bundle of goods. Usually, the phrase “demand shock” is used in the context of aggregate demand, which describes the cumulative demand for an entire economy. A Shift in Demand A temporary...
