Vocabulary

• Gig Economy – A labor market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs.
• Financial Stability – A state in which the financial system, i.e., key financial markets and the financial institutional system is resistant to economic shocks and is fit to smoothly fulfill its basic functions: intermediation, risk management, and provision of payment services.
• Freelance Work – Working on a contract basis for a variety of companies, as opposed to working as an employee for a single company.
• Short-term contracts – Employment agreements that last for a specific period, typically less than one year.
• Permanent Jobs – A work contract that is ongoing and doesn't have a specified end date.
• Labor Market – The supply and demand of labor, in which employees provide the supply and employers the demand.
• Economic Shocks – Unexpected events that impact the economy, either positively or negatively.
• Intermediation – The process of linking savers with investors, often facilitated by banks and other financial institutions.
• Risk Management – The practice of identifying and analyzing potential risks in advance and taking precautionary steps to curb the risk.
• Payment Services – Services that deal with the transfer of money between parties, such as banks, credit card companies, and fintech firms.
• Fintech – An industry composed of companies that use technology to offer financial services.
• Credit Card – A payment card issued to users to enable the cardholder to pay a merchant for goods and services.
• Financial Institutions – Organizations that provide financial services for its clients or members.
• Banks – Financial institutions licensed to receive deposits and make loans.
• Financial Services – Economic services provided by the finance industry, including banks, investment firms, insurance companies, and real estate firms.
• Investment Firms – Companies that manage, sell, and market funds to the public.
• Insurance Companies – Companies that provide coverage, in the form of compensation resulting from loss, damages, injury, treatment, or hardship in exchange for premium payments.
• Real Estate Firms – Companies that deal with the buying, selling, and renting of property.
• Premium Payments – Regular amounts paid by the insured to the insurance companies in return for coverage.
• Deposits – Money placed into a banking institution for safekeeping.
• Loans – A sum of money that is expected to be paid back with interest.
• Insurance Coverage – The amount of risk or liability covered for an individual or entity by insurance services.
• Liability – A company's legal financial debts or obligations that arise during the course of business operations.
• Interest – The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.
• Annual Percentage Rate (APR) – The annual rate that is charged for borrowing, expressed as a single percentage number that represents the actual yearly cost of funds over the term of a loan.
• Borrowing – Obtaining or receiving something (usually money) with the intention of returning it.
• Economy – The wealth and resources of a country or region, in terms of the production and consumption of goods and services.
• Supply and Demand – An economic model of price determination in a market.
• Goods and Services – The output of an economy, which can be used to satisfy people's needs and wants.
• Market – A place where buyers and sellers can exchange goods and services.
• Buyers – An individual or entity that purchases goods or services.
• Sellers – An individual or entity that sells goods or services.
• Transaction – An instance of buying or selling something.
• Contract – A binding agreement between two or more persons that is enforceable by law.
• Agreement – A negotiated and typically legally binding arrangement between parties in a transaction.
• Financial System – The system that allows the exchange of funds between investors, lenders, and borrowers.
• Investors – Individuals or entities that put money into financial schemes, property, etc. with the expectation of achieving a profit.
• Lenders – Individuals or entities that lend money to others with the expectation that it will be repaid, typically with interest.
• Borrowers – Individuals or entities that borrow money from others with the agreement that it will be repaid, typically with interest.
• Profit – A financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.
• Financial Gain – The increase in wealth or assets of an individual or a business.
• Assets – A resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide future benefit.
• Wealth – An abundance of valuable possessions or money.
• Corporation – A company or group of people authorized to act as a single entity and recognized as such in law.
• Country – A nation with its own government, occupying a particular territory.
• Future Benefit – The potential to produce advantages at a later date.
• Economic Value – The maximum amount a consumer is willing to pay for a good or service.
• Resource – A stock or supply of money, materials, staff, and other assets that can be drawn on by a person or organization in order to function effectively.
• Business Operations – The activities that businesses engage in on a daily basis to increase the value of the enterprise and earn a profit.
• Enterprise – A company or business, often a start-up, particularly those oriented towards growth.