capital adequacy A state in which a company owns sufficient capital for its own operation. Undercapitalisation will almost certainly lead to insolvency as the company will not be able to keep paying its way if its income drops for any reason. Therefore companies which engage in activities where risk is considered high should (and might be required by law to) ensure that their capital adequacy is good.
capital goods Goods used in the production of other goods, so factories, oil refineries, machinery and such like are considered capital goods. It is possible for a consumer good to also be a capital good. A car, for example, might be used by members of the public or business people.
capital market, the Generic term for the places where securities, such as company shares and public or private debt, are bought and sold; for example, the stock exchanges and other similar institutions. In a capital market, governments and companies can finance spending at scales beyond their income. Some transactions in capital markets involve the sale of newly issued shares and debt instruments, but the vast majority occur in secondary market, where existing shares and debt instruments change ownership.
Capital Markets Authority (CMA) A generic term given to the body which oversees and regulates its capital markets. Most countries will have some sort of capital markets authority.
capitalism A loose term for an economic model whereby productivity exists to make profit, usually for shareholders, and where companies are privately owned entities.
cash To the general public, the word cash means physical coins and notes which can be spent, as opposed to money which can mean this or the more abstract definition of wealth. In business, cash can have the same meaning, too, with ‘petty cash’ being a supply of money, usually small amount, which is used for miscellaneous business expenses. In accounting terms, cash need not be a tangible object but usually refers to monies which can readily be liquidated.
cash machine Common name for automated teller machine.
cashpoint A generic name for an automated teller machine, especially in the UK, although it is actually a registered trademark owned by Lloyds TSB for their own automated teller machines.
CBB Central Bank of Bahrain.
ce, c.e., Common Era, Current Era A year-numbering system equivalent to ad (Anno Domini), the most commonly used system in the world. bce (Before Common Era) relates to bc (Before Christ) (see also Hijri).
central bank The national bank of a nation, whose purposes are typically the issuing of currency, regulating money supply and setting interest rates, although different central banks are granted different roles and some of the typical tasks might be controlled directly by government. In the UK, for example, interest rates were set by the government until the power was handed to the Bank of England in 1998. Central banks, because of their large amounts of money, can also be used to lend money for large projects or to give cash injections to organisations that are in financial difficulties, often with favourable interest rates, particularly when there is a ‘public good’ case. In most developed countries, central banks maintain a distance from government, rather like the civil service, their aim being to act upon government policy but not to be overtly political.