Financial glossary

A reference price for a defined product, market and period. It may be a monthly average and may differ from a local retail quote.

Interest calculated on the original amount and on interest already added. Compounding frequency affects the result.

The amount of one currency exchanged for a unit of another. A quote needs the currency pair, direction, source and date.

Karat describes gold purity out of 24 parts. An 18K estimate uses 18/24 of a 24K gold value, before making charges and other adjustments.

The value of final goods and services produced within an economy during a stated period. It measures output, not how evenly income is shared.

A rise in the general level of prices over time. If income stays the same, higher prices reduce what it can buy.

The percentage charged for borrowing, or paid on savings, over a stated period. Check whether the quoted rate is annual and which fees are separate.

How easily an asset can be bought or sold without a large effect on its price. In household budgets, it can also refer to readily available money.

A published charge for a service or product. An electricity energy rate may exclude fixed subscription charges and other parts of a bill.

A precious-metal mass unit equal to about 31.1035 grams. It differs from the ordinary ounce used for many other goods.

A consumption tax applied to eligible sales under the relevant rules. A displayed standard rate does not describe every exemption or special case.

The extent of price movements over a stated period. Greater volatility means larger or more frequent changes; it does not predict their direction.