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FINANCIAL DICTIONARY & GLOSSARY: LO - MAR
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long-term financing - whether debt or equity, extends beyond five years.

loophole - a legal way of avoiding tax by exploiting part of a law.

loss-leader pricing - selling a popular product at a loss, hoping to attract customers who will also buy other products.

lower - to decrease (a price, tax rate, interest rate, etc.).

MO - the wide monetary base, or high-powered money; all notes and coins in circulation and in banks, plus the banks' balances in the central bank.

Ml - narrow money or transactions money; coins and notes and money placed in current accounts.

M2 - broad money; a US measure including notes and coins plus time deposits (interest-bearing savings accounts).

M3 - MI plus all time deposits (or savings accounts) in the banking system.

M4 - M3 plus all the money deposited in building societies (GB) and savings and loan associations and money market funds (US).

macroeconomics - the study and analysis of the economy as a whole.

mail order - purchasing goods by post, from a catalogue or from the web.

managed floating or dirty floating exchange rate - one that does not float freely: if it rises or falls too much, the Central Bank will intervene in the markets.

management buy-in - a management team from outside a company buys a majority of its shares, and then replaces the existing management.

management buy-out - a group of managers, anticipating future profits, borrows money in order to buy the company they run from its shareholders.

management letter - a letter addressed to a company's directors by the auditors, outlining deficiencies and suggesting improved operating procedures.

managerial accounting - the elaboration of financial reports necessary to efficient management (on the cost of products, future plans, etc.).

marginal - in economics, means resulting from the addition of one more unit.

marginal cost - the additional cost incurred by producing one more unit of a product.

marginal product - the increase in output resulting from the use of an additional unit of an input or factor of production.

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