Posts Tagged ‘Assets’

Special Drawing Rights (SDRs)

SDRs are international reserve assets created by the IMF and allocated to its member countries according to their relative weight in the global economy. Although SDRs are not themselves a form of currency, they can be converted into money that could be used for climate finance.   An allocation of $176 billion (worth over $230 billion […]

Futures

A future is a contract to buy or sell a specified asset at an agreed price and date in the future. In this respect, it is similar to a forward trade. However, these two types of derivative are traded in very different ways. Whereas forward contracts are negotiated over-the-counter between two parties according to specifically […]

Collateral

Something of value that is used to provide a guarantee for repayment of a loan or other form of debt. If the borrower fails to repay, the lender can seize the items offered as collateral. Land and real estate are often used as collateral, but other assets can also be used.

Capital Controls

Limits placed on the movement of capital across borders. Capital controls take various forms, including limits on foreign ownership of certain types of asset, as well as taxes on foreign currency exchanges (and other financial transaction taxes) and capital inflows. Capital controls are intended to protect the domestic economy from financial volatility, although neo-liberal theory […]

Capital

Capital has various meanings. In financial terms, a company’s capital is the total of the assets that it owns. However, the term ‘capital’ might also be used to refer to the total value of these assets minus liabilities (unpaid bills, un-repaid borrowing, etc.) In Marxist theory and some related strands of political economics, capital refers […]