Tight Money

AAA

DEFINITION of 'Tight 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 "dear money".

INVESTOPEDIA EXPLAINS 'Tight Money'

When there are tight money conditions in the business world, capital is scarcer than usual and therefore commands a higher price. Firms tend to have a harder time obtaining loans and financing expansions in tight money conditions and tend to pay higher than normal interest rates if they are successful in obtaining funds.

RELATED TERMS
  1. Cheap Money

    A loan or credit with a low interest rate, or the setting of ...
  2. Dear Money

    A situation in which money or loans are very difficult to obtain ...
  3. Interest Rate

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

    The act of giving money, property or other material goods to ...
  5. Monetary Policy

    The actions of a central bank, currency board or other regulatory ...
  6. Money Supply

    The entire stock of currency and other liquid instruments in ...
Related Articles
  1. Economics

    The Federal Reserve

  2. Economics

    What Is Money?

  3. Investing

    What are Business Ethics?

  4. What is globalization?
    Investing

    What is Globalization?

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center