Monetary gold

Gold held by governmental authorities as a financial asset.

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Monetary / non-monetary method
Under this translation method, monetary items (e.g. cash, accounts payable and receivable, and long-term debt) are translated at the current rate while non-monetary items (e.g. inventory, fixed assets, and long-term investments) are translated at historical rates.

Monetary policy
Actions taken by the Board of Governors of the Federal Reserve System to influence the money supply or interest rates.

Monetary neutrality
A proposition that in the long run, a percentage rise in the money supply is matched by the same percentage rise in the price level, leaving unchanged the real money supply and all other economic variables such as interest rates.

This theory, a core belief of classical economics, was first put forward in the 18th century by David Hume. He set out the classical dichotomy that economic variables come in two varieties, nominal and real, and that the things that influence nominal variables ...

Golden cross
In technical analysis, what happens when the short moving average price of a stock (say, its 20-day moving average) cuts above a longer moving average (say, its 50-day average).

For chartists, this cross is a sign that the market mood has turned decidedly in favour of the stock, especially if up to that point two moving averages have been moving roughly in parallel.

Goldbrick Shares
A stock with only the surface appearance of quality and worth, that is in fact worth very little.

Golden hello
A bonus paid by a securities firm to attract an employee from a competing firm.

Gold metal
The Bank of England is perhaps best known for storing gold. The standard weight of a bar is around 12.5 kilos (27-28 pounds). The purity of a bar of gold is measured by its assay. An assay of 1000 means it is completely pure. To be in the vaults a bar has to have an assay of more than 995 (995 parts per 1000 gold).

London Gold Market
Refers to the five dealers who set (fix) the gold price in London: Mocatta & Goldsmid, N. Rothschild & Sons, Johnson Matthey, Sharps Pixley, and Samuel Montagu & Co.

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Sales forecast

A key input to a firm's financial planning process. External sales forecasts are based on historical experience, statistical analysis, and consideration of various macroeconomic factors.


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