8 Results for Tag: implications

Key Currency

Key Currency What is 'Key Currency' The currency used as a reference in an international transaction or when setting an exchange rate. The key currency used is usually issued by a stable,

Old Economy

DefinitionOld Economy Village is a historic settlement in Ambridge, Beaver County, Pennsylvania, United States. Administered by the Pennsylvania Historical and Museum Commission, it lies on

One-Child Policy

DefinitionThe one-child policy, a part of the family planning policy, was a population planning policy of China. It was introduced in 1979 and began to be formally phased out near the end of

Mean Reversion

Mean Reversion What is the Mean Reversion? Mean reversion is a theory according to which the prices return back to the mean. This mean can be the usual average of the price or any other aver

Sacred Cow

Sacred Cow What is 'Sacred Cow' A firmly held mainstream belief that is considered to be true without independent verification. In finance, and in particular in investing, there are many s

Pass-Through Rate

Pass-Through Rate What is the 'Pass-Through Rate' The pass-through rate is the rate on a securitized asset pool -- such as a mortgage-backed security (MBS) -- that is "passed-through" to i

Uncovered Interest Rate Parity (UIP)

Uncovered Interest Rate Parity (UIP) What is the 'Uncovered Interest Rate Parity - UIP' The uncovered interest rate parity (UIP) is a parity condition stating that the difference in intere

Efficient Market Hypothesis

DefinitionThe efficient-market hypothesis is a theory in financial economics that states that asset prices fully reflect all available information. A direct implication is that it is impossi