Examlex
The government can correct externalities by imposing taxes on products with negative externalities and subsidies on products with positive externalities.
Spot Rate
The current price in the marketplace at which a given asset, such as a currency, commodity, or security, can be bought or sold for immediate delivery.
Nominal Risk-free Return
The return on an investment without adjusting for inflation, representing the interest rate on a risk-free security.
Initial Cost
The expenditure incurred at the beginning of a project or investment, including capital investment and operational expenses when applicable.
Home Currency Approach
A method used in international finance where companies evaluate their foreign operations and transactions in their domestic currency.
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