Dear Money

AAA

DEFINITION of 'Dear Money'

A situation in which money or loans are very difficult to obtain in a given country. If you do have the opportunity to secure a loan, then interest rates are usually extremely high. Also known as "tight money".

INVESTOPEDIA EXPLAINS 'Dear Money'

This situation can be a result of a restricted money supply, causing interest rates to be pushed up due to the forces of supply and demand. Businesses may have a tough time raising capital during a period of dear money.


RELATED TERMS
  1. Cheap Money

    A loan or credit with a low interest rate, or the setting of ...
  2. Interest Rate

    The amount charged, expressed as a percentage of principal, by ...
  3. Loan

    The act of giving money, property or other material goods to ...
  4. Money Supply

    The entire stock of currency and other liquid instruments in ...
  5. Tight Money

    A situation in which money or loans are very difficult to obtain ...
  6. Welfare Capitalism

    Definition of welfare capitalism.
Related Articles
  1. What Is Money?
    Economics

    What Is Money?

  2. China's GDP Examined: A Service-Sector ...
    Economics

    China's GDP Examined: A Service-Sector ...

  3. Main Characteristics of Capitalist Economies
    Economics

    Main Characteristics of Capitalist Economies

  4. Understanding World Bank Data
    Investing

    Understanding World Bank Data

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center