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What Is a Centrally Planned Economy

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What is a centrally planned economy?


Definitions:

Call Option

An option contract that allows the holder to purchase a specific asset at a predetermined price before the contract expires.

Swap

A financial agreement between two parties to exchange sequences of cash flows for a set period of time according to specified terms.

Floating Rate

An interest rate that is allowed to move up and down with the rest of the market or along with an index.

Fixed Rate

Fixed rate refers to an interest rate that remains constant over the duration of a loan or deposit, not subject to change with market fluctuations.

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