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07-26-2011 10:50 PM

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golden parachute (13)<br />A financial arrangement made by a company director to secure future income, e.g. a consultancy in the event of a company takeover.
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Group of Twenty-four (F3)<br />The inner circle of the GROUP OF SEVENTYSEVEN. It conducts many negotiations on behalf of LESS DEVELOPED COUNTRIES at the United Nations. growth (04) see economic growth

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07-28-2011 04:04 AM

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over-urbanization (R1)<br />The growth of a city at a higher rate than its creation of high-wage employment, often brought about by the unrealistic expectations of persons in rural areas. There are many examples of such growth in less developed countries, especially in Africa.<br /><em>Reference</em><br />Mills, E. and Becker, C. (1986) Studies in Indian Urban Development, New York: Oxford University Press.

<strong>ED</strong> – U.S. Department of Education, which may also be referred to as DE or simply the Department.
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<strong>Cost of Attendance (COA)</strong> – An estimate of a student' s total education-related expenses for an enrollment period.

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07-28-2011 06:49 AM

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<strong>Special allowance</strong> – A percentage of the daily average unpaid principal balance paid to a lender by the U.S. Department of Education on eligible FFEL Program loans. Special allowance is only paid when the regulatory maximum student loan interest rate is below market rates.
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zakat (H2)<br />Under Islamic law, a tax on sutplus wealth, e.g. on buried treasure acquired through little labour, or on a herd above a certain size. The tax is levied to help the poor and needy.
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Donovan Commission (UK) (J5)<br />The Royal Commission on Trade Unions and Employers' Associations of 1965 - 68 chaired by Lord Donovan. It concluded that the UK had two systems of industrial relations: a formal system with industrywide collective agreements on pay, hours of work and other employment conditions; and an informal system at the factory level setting earnings supplements to national wage rates and causing WAGE DRIFT and unofficial strikes to enforce workers' demands. This dual system was partly the consequence of FULL EMPLOYMENT in the UK in the 1950s and 1960s. To remedy these faults in the INDUSTRIAL RELATIONS system, the Donovan Commission recommended the limitation of industry-wide agreements to matters which could be regulated effectively at the industry level and the introduction of factory agreements to replace informal understandings.<br /><em>See also:</em> shop steward <br /><em>Reference</em><br />Royal Commission on Trade Unions and
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accelerated depreciation (H2)<br />An initial depreciation allowance greater than the annual wear and tear of a fixed capital asset. For an asset with an expected life of ten years, under the straightline method of depreciation the value of the asset would be deemed to depreciate by 10 per cent per year. But under accelerated depreciation, the value of the asset could perhaps be depreciated by 20 per cent in the first year. Governments have used this fiscal device to encourage private sector investment.

elasticity of substitution (DO)<br />The ease with which one factor of production can be substituted for another. If the elasticity of substitution is greater than unity for a FACTOR OF PRODUCTION, then an increase in its supply will increase its relative share of the national income. HICKS introduced this concept in his Theory of Wages (1926) to show the effect of a change in the supply of one factor, assuming two factors only and constant returns to scale, on the marginal productivity of the other. The concept has been extensively used in the study of PRODUCTION FUNCTIONS and the analysis of the effects of INVENTIONS.<br /> <br /><em>Reference</em><br />Bronfenbrenner, M. (1960) 'A note on relative shares and the elasticity of substitution', Journal of Political Economy 68: 284-7.
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Edgeworth box (DO, Fl)<br />This depicts the trading relationships between two persons or two countries using INDIFFERENCE CURVES and a CONTRACT CURVE which joins the points of tangency where each indifference curve of X touches an indifference curve of Y. In the figure, lx1- lx7 and ly1- ly7 are indifference curves of consumer X and consumer Y respectively. CC is the contract curve. The MARGINAL RATES OF SUBSTITUTIONS are equalized for each consumer.

International Monetary Market (G1)<br />A Chicago-based market established in 1982 for dealing in money futures.
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07-28-2011 06:04 PM

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<strong>Grade level</strong> – A student' s academic class level, as certified by a school official. Undergraduate students are assigned a level of 01 (freshman) through 05 (5th year senior). Graduate students are assigned a level A (first year graduate) through D (fourth year and beyond).
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<strong>The Blue Book</strong> – Department of Education manual providing guidance to school business office personnel who handle fiscal recordkeeping, accounting, and reporting functions for the federal Title IV student financial aid programs. The most recent edition is dated October 2005 and may be retrieved from the IFAP website (http://www.ifap.ed.gov/bbooks/102005BlueBook.html).
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Keidanven (J5)<br />Federation of Economic Organizations (Japan).

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<strong>E-distribution list</strong> – The Missouri Department of Higher Education' s electronic news service. To sign up for this service, visit http://www.dhe.mo.gov/mdhedigest/signup.shtml.

<strong>FAFSA</strong> – Free Application for Federal Student Aid, the form the student must complete to apply for federal Title IV financial assistance and for Missouri need-based aid programs. The FAFSA may also be completed on the web at the following url: http://www.fafsa.ed.gov/.
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<strong>Direct lending, or direct loan</strong> – The William D. Ford Direct Loan Program, a federal student loan program through which the U.S. Department of Education loans money directly to students and parents rather than having the loans funded by private lenders, as in the case of the FFEL Program. Direct lending is codified in federal regulations within 34 CFR 685.
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<strong>MOREnet</strong> – Missouri Research and Education Network. Provides networking capabilities and internet access for colleges and universities, elementary and secondary schools, state agencies, libraries, and community networks.
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currency stabilization scheme (F3)<br />An international arrangement by which a group of states agrees to link the exchange rate values of their currencies to gold, a leading currency (e.g. the US dollar) or an artificial currency. The first scheme in the post-1945 period was BRETTON wooDs; the major one in force at the beginning of the twenty-first century is the EUROPEAN MONETARY SYSTEM.
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<strong>Financial literacy</strong> – The ability to read, analyze, manage, and communicate about the personal financial conditions affecting material well-being. This term is used to describe financial education programs on college campuses and within high schools. The objective of financial literacy programs is to help students better manage their finances, budget effectively, and borrow wisely.

<strong>Graduated repayment schedule</strong> – A repayment schedule under which the amount of the borrower' s payment is scheduled to change during the course of the repayment period. The graduated repayment schedule cannot exceed 10 years unless the borrower is eligible for an extended repayment period.

<strong>Variable rate</strong> – An interest rate that varies over time and generally has a specified maximum (cap). Prior to July 1, 2006, interest rates on FFEL Program loans were variable with an 8.25% cap. (Beginning July 1, 2006, interest rates are now fixed rates, with the maximum established at 6.8% for Stafford Loans and 8.5% for FFEL Program PLUS Loans.)

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<strong>Missouri task force</strong> – Former name for the MDHE' s State Student Financial Aid Committee, comprised of financial aid administrators and established in February of 2005 to make recommendations to improve the Missouri student financial assistance programs.
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glut (E3)<br />Excess supply of all or most goods and services. CLASSICAL ECONOMISTS regarded a glut as a general economic depression, characterized by failing output, employment and prices - it was only temporary as price changes were expected to restore the economy to a full-employment equilibrium.<br /><em>See also:</em> effectual demand; Malthus; Mill, John Stuart; Say's law
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European Bank for Reconstruction and Development (G2)<br />The development bank founded in 1991 and based in London which lends to the East European countries in order to ease their transition from centrally planned to market economies. Its capital was raised from EUROPEAN COMMUNITY institutions and forty-one countries. Its lending policy is to make 40 per cent of its loans for infra- structure investment and 60 per cent for private sector commercial investment.
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sacrifice theory (H2)<br />The assertion that taxation should be based on ABILITY TO PAY. This approach to taxation can be traced back to Adam SMITH and John Stuart MILL. It has been criticized for assuming that INTERPERSONAL UTILITY COMPARISONS are possible and for ignoring DISINCENTIVE EFFECTS of taxation.<br /> See also: canons of taxation saddle point (C7)<br />The determinate solution, in some games, in which all players follow a MAXIMIN STRATEGY.<br /> See also: game theory

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<strong>Missouri College Guarantee Program</strong> – A scholarship program based on financial need as well as high school and college academic achievement and administered by the MDHE through the 2006-07 academic year. This program was replaced by Access Missouri August 28, 2007.

<strong>Voluntary Flexible Agreement (VFA)</strong> – Individually negotiated contract between a FFEL Program guarantor and the U.S. Department of Education. On October 7, 1998, President Clinton signed the Higher Education Amendments of 1998 (P.L. 105-244), authorizing the Department of Education to enter into no more than 6 VFAs. A VFA may modify the guarantor provisions under sections 428 (b) and (c) of the Higher Education Act, such as the issuance of insurance on FFEL Program loans, defined default aversion activities, collection activities on defaulted loans, guarantor revenue and funding models, and other requirements. For more information on VFAs, see Volume 64, No. 144 of the Federal Register, published July 28, 1999.

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<strong>Borrower-based academic year (BBAY)</strong> – An academic year that deviates from the standard definition and is often used by technical or vocational schools or within non-traditional programs of study. A BBAY is individualized for each borrower and generally covers a period of time during which the borrower completes at least a certain number of credit hours.
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bulge-bracket firm (G2)<br />A top investment bank of the USA, one of the leading oligopolists of the US securities industry. The separation of commercial from investment banking under the GLASS STEAGALL ACT protects their privileged position.

martingale (C7)<br />Originally a French betting system in which the stakes are doubled after each loss to assure a favourable outcome with a high probability of success. This mathematical model of a fair game, a stochastic process, has been applied to the analysis of asset prices, particularly to see whether the rates of return to assets are such that asset prices and cumulated dividends at their present values are equal to the discounted value of a mutual fund.<br /><em>Reference</em><br />Hall, I' and Heyde, C.C. (1980) Martingale Limit Theory and its Applications, New York: Academic Press.<br /> Le Roy, S.T. (1989) 'Efficient capital markets and martingales', Journal of Economic Literature 27 (December): 1583-621.

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<strong>Reaffirmation</strong> – A borrower' s acknowledgment of a loan repayment obligation, including all principal, interest, and other costs, in a legally binding manner.

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<strong>FRB</strong> – Federal Reserve Bank, one of 12 banks established by The Federal Reserve Act for holding government reserve funds. The banking industry uses the Federal Reserve system for transferring funds electronically via an overnight process. (See also ACH.)
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bid price (G1)<br />The selling price for UNIT TRUST units or shares of companies.
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<strong>Participation agreement</strong> – Agreement with the MDHE that permits a school to participate in the state student assistance programs.

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Euroequity (G2)<br />An EQUITY of one country which is issued

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agency pass-through (G2)<br />A MORTGAGE PASS-THROUGH SECURITY guaranteed by a US agency such as the Government National Mortgage Association so that there is no default on the principal and interest payments.
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real option theory (G2)<br />An extension of financial option theory to the study of real, non-financial, options. Real options are embedded in investments rather than being contractual terms. This theory is used to value private companies.<br /> <br /><em>Reference</em><br />Amram, M. and Kulatilaka, N. (1999) Real Options, Cambridge, MA: Harvard Business School Press.

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cross price elasticity of demand (C1, DO)<br />The responsiveness of the quantity demanded of one good to a change in the price of another good. It can be measured, for example, as the ratio of the percentage change in quantity demanded of good A to the percentage change in the price of good B. If A and B are substitutes the cross price elasticity is positive; it is negative if A and B are complements. The concept has been used extensively by analysts of market concentration and ANTITRUST lawyers as it indicates whether the dissimilar output from different firms is supplied to one or several markets_<br /><em>See also:</em> elasticity

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exit-voice (DO)<br />A distinction used to classify the physical or verbal methods individuals use to reveal their preferences. 'Voice' can take the form of voting (as in democratic politics) or complaints (as under grievance procedures); 'exit' is movement away from a less desired situation, e.g. a particular employment, region or country. 'Exitvoice' can be applied to collective or individual choice.<br /><em>See also:</em> Tiebout hypothesis <br /><em>Reference</em><br />Hirschman, A.O. (1970) Exit, Voice and Loyalty: Responses to Decline in Firms, Organizations and States, Cambridge MA: Harvard University Press.
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average propensity to consume (E2)<br /> The ratio of a consumer's total consumption to his or her total income. For lowincome groups the average propensity to consume is unity, or close to unity, as there is no surplus over expenditure available for saving. As income rises and basic consumer goods have been purchased, this propensity declines; also it varies over the life cycle (see LIFE-CYCLE HYPOTHESIS). If a graph of the CONSUMPTION FUNCTION passes through the origin, the average propensity to consume (C/Y) equals the MARGINAL PROPENSITYTOCONSUME ( C/ Y) at all levels of income and is unity; a consumption function with a constant slope has the same MARGINAL PROPENSITY TO CONSUME at all income levels.

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08-01-2011 07:47 PM

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<strong>MYF</strong> - Mapping Your Future, an organization sponsored by FFEL Program participants, such as the MDHE, to offer online student loan counseling, financial literacy and debt management tools, outreach and early awareness activities, and other services. May be found on the world wide web at www.mapping-your-future.org.
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<strong>Package</strong> – Schools award, or “package,” student aid for each year for students. Once the aid is packaged, schools send award letters to students indicating the type(s) and amount(s) of financial aid awarded for year. (Under 34 CFR 668.16(h), the school is required to provide information about the sources and amounts of aid offered.)

just price (DO)<br />The price giving labourers a just recompense and in the estimation of buyers and sellers, or of magistrates with price-fixing powers, is fair. This approach to price theory was central to the economic thinking of AQUINAS and his contemporaries. It contains elements of both the LABOUR THEORY OF VALUE and the concept of UTILITY.<br /> <br /><em>Reference</em><br />Deman!, VA. (ed.) (1930) The Just Price: An Outline of the Mediaeval Doctrine and an Examination of its Possible Equivalent Today, London: Student Christian Movement.<br /> Hollander, S. (1965) 'On the interpretation of the just price', Kyklos 18: 615-34.

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<strong>American College Testing (ACT, Inc.)</strong> – An independent not-for-profit organization that provides assessment, research, information, and program management services in the areas of educational testing and planning, career planning, and workforce development.

PSL2 = PSLl + more liquid building society shares and deposits and other similar forms of liquid savings instruments + SAYE deposits + bank deposits with an original term longer than two years<br /><em>See also:</em> M5

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