What will I find in this section?
Technical terms, unfortunately, cannot always be avoided – particularly when it comes to complex topics such as monetary policy. This is why we have compiled a glossary with a wide range of terms, arranged in alphabetical order and each with a short explanation.
- ABCP (Asset-backed commercial paper)
- ABS (Asset-backed security)
- ABSPP (Asset-Backed Securities Purchase Programme)
- Account information service (AIS)
- Act to Modernise Accounting Law (BilMoG)
- Annuity loan
- APP (Asset purchase programme)
- Asset-backed commercial paper (ABCP)
- Asset-Backed Securities Purchase Programme (ABSPP)
- Asset-backed security (ABS)
- Asset purchase programme (APP)
- Automatic stabilisers
- Autonomous factors
Arbitrage is the practice of taking advantage of price differences in different markets for identical items or financial products. Arbitrage transactions are largely risk-free as the purchase (on the cheaper market) and the sale (on the more expensive market) can be effected simultaneously. Arbitrage transactions have the effect of causing prices in different markets to converge, such as the price of an equity share traded both in Frankfurt and London.