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lender of last resort

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41 Terms

1

lender of last resort

central bank or international organization that lends money to banks or countries in difficult financial periods when they cannot borrow from anywhere else

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2

creditor

A person to whom money is owed

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3

lender

an organization or person that lends money.

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4

depositor

One who makes a deposit, or has an amount deposited.

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5

borrower

a person or organization that borrows something, especially money from a bank

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6

saver

a person who saves money regularly

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7

predecessor

one who came before

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8

downturn

a decline in economic and business activity

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9

Liquidity

the fact of being available in the form of money, rather than investments or property, or of being able to be changed into money easily

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10

Intermediaries

someone who carries messages between people who are unwilling or unable to meet

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11

bank run

a period when many people take their money out of a bank because they are afraid the bank will lose it or go out of business

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12

plunge

to go down suddenly

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13

premises

house or building and its surrounding property

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14

providing credit

offering a range of financial solutions to consumers

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15

new entrants

businesses that want to enter the market

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16

dip into

Take money out of your savings

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17

pool

the grouping together of resources (assets, equipment, personnel, effort, etc.) for the purposes of maximizing advantage or minimizing risk to the users

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18

returns

profit earned through investing

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19

asset

something having value, such as a possession or property

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20

maturity

the time at which payment to a bondholder is due

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21

deposit

a sum of money placed or kept in a bank account, usually to gain interest.

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22

redeem

to exchange shares or bonds for cash

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23

loan

an amount of money that is borrowed, often from a bank, and has to be paid back,

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24

collapse

Complete failure and ruin

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25

depositors

people who put money into banks

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26

consistent

done in the same way over time

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27

scrouge

sth that causes great trouble or suffering

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28

underestimated

sth that has been assesed as less important or smaller

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29

at large

as a whole; in general

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30

defunct

no longer existing or functioning

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31

underplay

to show sth as less important

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32

joblessness

unemployment

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33

monetary policy

managing the economy by altering the supply of money and interest rates

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34

capacity

the maximum amount that something can contain.

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35

Disinflation

a reduction in the rate of inflation

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36

intrest rate

the interest percent that a bank or other financial company charges you when you borrow money

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37

price gouging

Pricing products unreasonably high when there is a high demand resulting from a monopoly or a natural disaster.

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38

wage-price spiral

a rise in prices that causes a rise in the amount that workers earn, which increases the cost of producing goods, making prices rise again

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39

underpinned

support, justify, or form the basis for

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40

unprecedented

never having happened before

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41

substantially

to a large degree

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