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outsourcing (D2)<br />Subcontracting a productive activity to another firm in the same or another country.
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deprivation. It is also argued that excessive international AID can have the same effect on whole countries.
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sovereign risk (G1)<br />The rating given to an issue of government bonds by Standard & Poor or another rating agency. The grades are AAA, AA, A, BBB, BB and B.

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<strong>Accrued interest</strong> – Each day interest is calculated on the unpaid principal balance of a loan and increases (accrues). Interest accrues on a subsidized Stafford Loan after the grace period is completed and the borrower enters repayment. For unsubsidized Stafford, parent PLUS, and Grad PLUS Loans, on the other hand, interest begins to accrue after the first disbursement of the loan.
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Fisher equation of exchange (E5)<br />A famous statement of the QUANTITY THEORY oF MONEY as MV = PT. M is the stock of money, P the general price level, V the velocity of circulation and T the volume of transactions.
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regular economy (DO, PO)<br />An ECONOMY with a typical set of equilibrium prices linked to characteristic data.
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postmodern economics (A1)<br />An epistemological critique of modern economic theory that takes into account the community producing such knowledge. It attacks the use of a deterministic 'scientific' methodology economics and a GENERAL EQUILIBRIUM approach in favour of recognizing indeterminacy, uncertainty, the randomness and multiplicity of possible causes. In its analysis of LATE CAPITALISM it recognizes the fragmented nature of modem life and the many motivations inspiring economic conduct.<br /> <br /><em>Reference</em><br />Cullenberg, S., Amariglio, J. and Ruccio, D.F (2001) Postmodernism, Economics and Knowledge, London and New York: Routledge.
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<strong>FT</strong> – Full Time, an enrollment status indicating the student is carrying a full academic workload as determined by the school.
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<strong>LTH</strong> – Less than half time, an enrollment status indicating the student is carrying less than a half-time academic workload, as determined by the school. Students who are less than half time are not eligible to borrow FFEL Program loans.
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cap (E4, Gl)<br />The maximum interest rate paid on a floating rate security by its issuer. The seller gives funds to cover interest paymen ts over a specified rate. Also applies to an adjustable ra te mortgage.<br /> See also: collar; floor capacity {D2, E4)<br />1 The maximum output that a firm or a national economy can produce from its existing supply of factors of production. A firm can increase its capacity by enlarging its labour force or its capital stock.<br /> 2 The maximum amount of money which a financial institution can lend.<br /> See also: capital utilization capacity charge (D4, M2)<br />A component of the price of the goods or services of public enterprises which is expected to cover the costs of fixed capital.<br /> capacity ratio (J2) see volume ratio capacity uti lization (DO, EO)<br />The ratio of the actual output of a fll111, industry or national economy to its maximum output at a point in time. This ratio will fluctuate cyclically. A high degree of utilization will be a signal for more net investmen t.<br /> See also: accelerator principle; trade cycle capital (DO, EO)<br />1 Durable goods capable of producing a stream of goods or services over a period of time.<br /> 2 A factor of production distinct from land, the entrepreneur and the labour currently being used.<br /> 3 A sum of money which is invested in a business enterprise.<br /> 4 Accumulated expenditures giving rise to higher subsequent incomes, as in HUMAN CAPITAL.<br /> 5 Wealth.<br /> 6 Stored-up labour; exchange value which is becoming wealth, according to Marx.<br /><em>See also:</em> Cambridge con troversies; capital theory
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<strong>Proration</strong> – A reduction of the standard annual loan limit for an undergraduate student if the student' s program or remainder of the program is less than a full academic year in length.

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cumulative security (Gl )<br />A stock exchange security which accumulates unpaid interest or preference dividends so that the holder does not suffer from a year of poor profitability. In return for this greater security of income, many cumula tive PREFERENCE SHARES are without voting righ ts.
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<strong>EFA</strong> – Estimated Financial Assistance (or Aid), a school' s estimation of the amount of financial aid for which the student is eligible during any given enrollment period. EFA may include loan, grant, or scholarship aid from federal, state, institutional, or other sources.

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