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Central banks buy high quality assets at a substantial discount. This discount is referred to as a haircut.
Binary Variable
A variable that takes one of two possible values, often used to represent outcomes like success/failure, yes/no, or true/false.
Demand Constraint
A limitation in operations management that affects the maximum demand that can be satisfied given current resources.
Double-subscripted Variables
Variables identified by two subscripts, commonly used in mathematical and scientific contexts to denote elements in matrices, tables, or double-entry arrays.
Capacity Constraint
A limitation on the resources available for production, such as time, labor, or materials, which can affect the maximum output levels.
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