Cost plus contract


 

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Cost plus contract

A contract in which the selling price is based on the total cost of production plus a fixed percentage or fixed amount.



Cost plus contract

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Contractionary

Contractionary

Tending to cause aggregate output (GDP) and/or the price level to fall. Term is typically applied to monetary policy (a decrease in the money supply or an increase in interest rates) and to fiscal policy (a decrease in government spending or a tax increase), but may also apply to other macroeconomic shocks. Contrasts expansionary.


Interest rate futures contract

Interest rate futures contract

A futures contract based on an interbank deposit rate or an underlying debt security. The value of the contract rises and falls inversely to changes in interest rates.


Contractual liability

Contractual liability

The terms of a contract to which you must abide. There may be financial or even criminal penalties which you incur if if you do not meet your contractual liabilities.


Forward contract

Forward contract

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Nexus (of contracts)

Nexus (of contracts)

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