| [U] uncertain responses In stabilization policy, the situation when the reactions of individuals and businesses to a policy is not what policymakers predicted (e.g., a decrease in income tax rates that does not increase consumer spending). unemployment rate The percentage of the labor force that is unemployed and actively seeking a job. U.S. Treasury securities Direct obligations of the U.S. Government, issued by the U.S. Treasury's Bureau of Public Debt as a means of financing the Federal Government. There are three types of securities issued: Treasury bills (T-bills), Treasury bonds, and Treasury notes. utility Utility theory explains consumer tastes and preferences. Consumers purchase those things that give them satisfaction or utility. As a consumer consumes more of any one product, other goods and services look more desirable. As one consumes more of a product, smaller and smaller increments of pleasure or satisfaction come from it. The law of diminishing marginal utility underlies the law of demand. [V] variable rate A variable rate agreement, as distinguished from a fixed rate agreement, calls for an interest rate that may fluctuate over the life of the loan. The rate is often tied to an index that reflects changes in market rates of interest. A fluctuation in the rate causes changes in either the payments or the length of the loan term. Limits are often placed on the degree to which the interest rate or the payments can vary. vault cash Cash kept on hand in a depository institution's vault to meet day-to-day business needs, such as cashing checks for customers; can be counted as a portion of the institution's required reserves. velocity The rate at which money balances turn over in a period for expenditures on goods and services (often measured as the ratio of GNP--gross national product-- to the money stock). A larger velocity means that a given quantity of money is associated with a greater dollar volume of transactions. [W] wire transfer Electronic transfer of funds; usually involves large dollar payments. wraparound A financing device that permits an existing loan to be refinanced and new money to be advanced at an interest rate between the rate charged on the old loan and the current market interest rate. The creditor combines or 'wraps' the remainder of the old loan with the new loan at the intermediate rate. [X] x-mark signature A signature made by a person unable to sign his or her name. To be legally valid, the signature must be witnessed by another person. X9 A financial standards committee accredited by the American National Standards Institute. X9 develops and publishes voluntary financial industry payment standards for banks and other depository financial institutions. [Y] yield The return on a loan or investment, stated as a percentage of price. yankee bond A dollar denominated bond issued in the United States by foreign banks and corporations. These bonds, the U.S. equivalent of the Eurobond, pay semi-annual interest, unlike the Eurobonds, which pay annual interest, and are registered with the Securities and Exchange Commission. [Z] zero-coupon mortgage A long-term commercial mortgage that defers all payments of principal and interest until maturity. |
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| BUSINESS DICTIONARY |