Category: Economic Dictionary

Basic prices : Prices excluding taxes and subsidies on products.

Capital : One of the factors of production, providing a stream of revenues or services to its owner. Capital can include tangible assets – such as plant or machinery – or intangible assets – such as software and knowledge.

Base rate : Set by the Bank of England in the conduct of monetary policy, it is the rate of interest used by commercial banks as the basis for their lending rates to the public.

Balance sheet : A statement, drawn up at a particular point in time, recording the assets held by and financial claims (liabilities) of a business, organisation or country.

Balance of payments : The accounting record of UK transactions with the rest of the world, including international institutions. Also known as the Pink Book.

Asset : An item or claim that usually provides a flow of benefits – either income or services – to its owner. Real assets include land, buildings or machinery owned. Financial assets include cash and securities, and credit extended to customers.

Appreciation : An increase in the value of an asset or currency relative to another asset or currency.

Alignment adjustment : The adjustment applied to the expenditure and income measures of Gross Domestic Product that allows ONS to balance these with the output measure of Gross Domestic Product.