Subject Index

0

• “Tolerance” 

A

• Activation function ,
• Amortization 
• Annuity 
• Apportionment 
• Artificial intelligence (AI) 
• Axiom 

B

• Backward propagation (backprop) 
• Balanced budget 
• Balance sheet 
• Bank reserves 
• Barnett critique 
• Basis points (bps) 
• Behavioralists ,
• Benchmark bond 
• Bias 
• Bias term 
• Binary outcome 
• Blowout 
• Bond demand curve 
• Bond holders 
• Bond issuer 
• Bond rating 
• Bonds 
• Bond supply curve 
• Budget deficit 
• Budget surplus 
• Buy-and-hold strategy 

C

• Capital gain 
• Capital gain/loss 
• Central limit theorem (CLT) 
• Chartists ,
• Classical theory of asset prices ,
• Classification ,
• CLT , , , , , ,
• Commercial paper 
• Common stock 
• Co-movement ,
• Compound interest (CI) , , ,
• Confidence level 
• Continuous probability 
• Corporate bonds 
• Corporate debt 
• Correlation 
• Coupon bond 
• Coupon bonds 
• Coupon payment 
• Coupon rate (cr) 
• COVID , , , , ,
• Cross entropy 
• Cumulative probability distribution 
• Currency in circulation 
• Current yield (cy) 

D

• Debt-to-GDP ratio 
• Default risk ,
• Deficit spending 
• Discount bond (Zero-coupon bond) 
• Discount bonds 
• Discount loans 
• Discount rate 
• Discrete probability 
• Diversification 
• Dividend discount model ,
• Divisia aggregate 
• Dow Jones Industrial Average 
• Drift 

E

• Epoch 
• Expectations hypothesis 
• Expected value ,

F

• Face value 
• Face value (FV) / Par value / Principal 
• Fallen angels ,
• Federal debt (National debt) 
• Federal funds rate 
• Federal Reserve (Fed) 
• First principle 
• Fiscal policy 
• For-looping 
• Forward propagation 
• Forward propagation function 
• Free riding 
• Fundamental value , ,
• Future value (FV) 

G

• Gaussian 
• GDP , , , , , , , , , ,
• Global financial crisis (GFC) 
• Gradient descent ,
• Gross Domestic Product (GDP) 

H

• Hedging 
• Historical mean 
• Holder 
• Holding period return 
• Household debt 

I

• Idiosyncratic risk , , , ,
• Income 
• Independent payoffs 
• Inflation risk 
• Insurance premium 
• Interest on reserves 
• Interest rate (i) 
• Interest rate risk ,
• Interest rate spreads ,
• Internal revenue service (IRS) 
• Irrational exuberance 
• IRS ,
• Issuer 
• IT , ,

J

• Joint-stock company 
• Junk bonds ,

K

• Kolmogorov axioms 

L

• LASSO (least absolute shrinkage and selection operator) 
• Law of large numbers 
• Lending standards 
• Leverage 
• Limited liability 
• Linear regression 
• Liquidity 
• Liquidity premium theory (LPT) 
• Liquidity trap 
• Logistic regression ,

M

• Machine learning (ML) 
• Market capitalization 
• Market clearing 
• Maturity date 
• Monetary base 
• Monetary response 
• Money multiplier 
• Money supply 
• Monte Carlo integration 
• Monte Carlo simulation 
• Mortgage debt 
• Multiple deposit creation 
• Mutually exclusive events 

N

• Net present value (NPV) 
• Neural network 
• New York Stock Exchange 
• NINJA loans 
• Nonborrowed reserves 
• Normal distribution 
• Notional portfolio value (NPV) 
• Null hypothesis 
• Numpy array 
• NYSE 

O

• Open market operations 
• Overfitting 
• Over-the-counter (OTC) market 

P

• Par value 
• Payoff 
• Payoff table 
• Perceptron 
• Population 
• Portfolio risk 
• Portfolio volatility 
• Portfolio’s return 
• Portfolio’s risk 
• Predict ,
• Present value (PV) 
• Primary dealers 
• Principal ,
• Probability distribution 
• Probability $\mathit{P}\mathrm{(}\mathit{A}\mathrm{)}$ 

R

• Rating downgrade 
• Real estate bubble 
• Real return 
• Regularization ,
• RELU (rectified linear unit) 
• Residual claimant 
• Return volatility 
• Ridge regression 
• Risk-free asset 
• Risk-free rate 
• Risk horizon 
• Risk management 
• Risk premium , , , ,
• Risk premium (ψ) 
• Rule of 72 ,

S

• Sample average 
• Sample size 
• Simple interest (SI) 
• Simple-sum monetary aggregate 
• Standard & Poor’s 
• Standard deviation , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
• State and local government debt 
• State of the world 
• Stochastic 
• Stock market index ,
• Substitution 
• Sustainable debt 
• Systemic risk ,
• System open market account (SOMA) 

T

• Term structure of interest rates 
• Term to maturity 
• Time horizon 
• Time value of money 
• Training 
• Treasury bills (T-bills) 
• Treasury department 

U

• Uniform probability 

V

• Value at risk (VaR) 
• Value-weighted index 
• Variance , ,
• Volatility 
• Voluntary reserve ratio (vrr) 

W

• Wealth 
• Weights 

Y

• Yield 
• Yield curve 
• Yield curve inversion 
• Yield to maturity (YTM) 

Z

• Zero-lower-bound (ZLB)