Index

Definition

• A table of yields or interest rates being paid on debt (such as Treasury notes or bank deposits) that is used to determine interest-rate changes.

Synonyms
scale, guide, model, basis

Related Terms and Acronyms

• Consumer Price Index (CPI) — Acronym, Important,
  • An index that measures movements in the average price of products and services typically consumed by Canadian families.
• Cost of Living Adjustment (COLA) — Acronym,
  • A method used to keep salaries and benefits in line with inflation by following an index such as the Consumer Price Index.
• Derivatives — Definition,
  • Financial contracts whose value is derived from the value of some underlying asset, rate or index. Derivatives are used as risk-management tools by governments and corporations to reduce exposure to risk, mainly related to fluctuations in foreign-exchange and interest rates. Derivative instruments include swaps, options, futures and forward contracts and are used by banks in two principal activities: sales/trading and asset/liability management.
• Economic Indicators — Definition,
  • Statistics that help determine how the economy is faring. They include the Consumer Price Index, housing starts, and unemployment rates, among others.
• Indexed Annuity — Definition,
  • An annuity where investment performance is pegged to a stock index.
• Interest Rate (IR) — Acronym, Very Important,
  • The rate a lender charges an individual to borrow money.
• Macroeconomics — Definition,
  • A study of the economy as a whole, particularly the interaction of its various components.
• Note — Definition,
  • A legal acknowledgement of a debt and an implicit promise to repay. It includes the loan amount, interest rate and term.
• Rate Index — Definition,
  • A table of yields or interest rates being paid on debt (such as Treasury notes or bank deposits) that is used to determine interest-rate changes for adjustable-rate mortgages and other variable-rate loans.
• Secondary Market — Definition,
  • A market where financial instruments such as stocks, bonds, options and futures are bought and sold to investors.
• Security — Definition,
  • Property designated as collateral.
  • A document stating ownership of a stock or bond.
  • A tradable financial implement that represents ownership, the rights to ownership or debt.
• Stock — Definition,
  • A share of the ownership of a company.