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Economic Community of the countries ofthe Great Lakes (FO)<br />An economic association of Zaire, Rwanda and Burundi set up in 1979 to establish trade agreements.
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hedge ratio (G1)<br />The ratio of the number of OPTION contracts to the position in the underlying instrument being hedged against.
decimalization (E5)<br />A change in the currency of a country so that the basic unit is divisible into ten parts. The French franc and US dollar have been divided into a hundred cents since the eighteenth century and the Australian dollar since 1966. In the UK in 1971 the pound, previously divisible into twenty shillings or 240 pence, was made equivalent to 100 new pence. It is feared that this type of currency change leads to consumers losing their PRICE PERCEPTION and unwittingly accepting price increases. However, the quotation of prices in old and new forms reduces this disguised inflation.
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free good (DO)<br />A good with a zero price. This is possible because its supply is either abundant or rationed. A free good is the opposite of an ECONOMIC GOOD.
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