Liquidity Ratio
The proportion between a bank or other financial institution’s holdings of liquid assets and its total liabilities.
Liquidity Trap
A situation in which real interest rates cannot be reduced by any action of the monetary authorities.
Lisbon Agreement
An international agreement between the EU countries that amends the Maastricht Treaty and the Treaty of Rome, comprising the constitutional basis of the EU.
Lloyd’s: Definition and Meaning
An in-depth look into Lloyd’s, a prominent London-based insurance market known for its global operations by individual investors or 'names' and its recent inclusion of company memberships.
LM Curve
An introduction to the LM curve, a Keynesian economics concept representing money market equilibrium
Loan
Understanding loans, their types, and implications in economics
Loan Portfolio
The collection of loans held as assets by a financial institution, designed to spread risk and maintain profitability.
Loan-Loss Reserve
A reserve fund held by a financial institution to cover potential bad debts from loans.
Loanable Funds
Theory of interest rate determination by the demand and supply of loanable funds.
Loans-to-Deposit Ratio
A measure that represents the total value of a bank’s loans as a percentage of the total value of its deposits, often used as an indicator of liquidity.
Lobbying
Activities devoted to informing politicians of the views of various interest groups, and persuading them to draft legislation or to vote in accordance with these views