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<strong>Interest</strong> – The charge made to a borrower for use of a lender' s money.

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optimal taxation (H2)<br />A tax structure maximizing sociAL WELFARE. As a taxation system uses a variety of taxes, optimal income taxes and optimal commodity taxes have to be determined simultaneously. Optimality is obtained by a correct TRADE-OFF between economic efficiency and distributional objectives_<br /><em>See also:</em> Ramsey rule
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equity joint venture (M1)<br />A business jointly owned and run by a private firm and a governmental organization. As it is financed partly by equity capital, the return to the private investor is a variable dividend. This arrangement was used by capitalist firms to invest in CEN- TRALLY PLANNED ECONOMIES. To the participating government there is the advantage of not having to pay fixed interest charges. Many East European countries turned to this organizational form after 1989 as a means of reconstructing their economies.<br /><em>See also:</em> European Bank for Reconstruction and Development; joint venture

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<strong>Nelnet</strong> – A for-profit FFEL Program secondary market and servicer that originates, disburses, services, and purchases FFEL Program loans.

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<strong>Repayment period</strong> – The period during which payments of principal and interest are required. The repayment period follows any applicable in-school or grace period (for Stafford Loans) and excludes any period of authorized deferment or forbearance.

<strong>Delivery of proceeds</strong> – Delivery of loan proceeds by the school to the borrower. Also referred to as “release of proceeds.”
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<strong>TRIO</strong> – Special federal programs for students from disadvantaged backgrounds.

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Confederation of British Industry (LO) The major representative body for private and public sector firms of UK industry. The CBI was created in 1965 as a result of the merging together of the Federation of British Industries (founded in 1916), the British Employers' Federation and the National Association of British Manufacturers.
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emission reductions banking (Q2)<br />An environmental control policy allowing a source of pollution which reduces its emissions more than legally required to ' bank' the right to pollute more in the future. Thus over a period of time the flow of emissions is on average at the legal limit.
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international monetary system (F3)<br />The financial arrangements between sovereign states in force at a particular time. These consist largely of agreements for the fixing of exchange rates and the settlement of debts, particularly balance of payments deficits. Countries have a choice between market mechanisms under FLOATING EXCHANGE RATES or an order managed by an international body. The most famous international monetary systems have been the GOLD STANDARD, BRETTON WOODS and the EUROPEAN MONETARY SYSTEM.<br /> <br /><em>Reference</em><br />Solmon, R. (1977) The International Monetary System, 1945-76: An Insider's View, New York and London: Harper & Row.<br /> Tew, B. (1982) The Evolution of the International Monetary System, 1945 to 1981, London: Hutchinson.
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<strong>Standard repayment schedule</strong> – A repayment schedule under which the borrower pays the same amount for each installment payment throughout the entire repayment period OR pays an amount that is adjusted to reflect annual changes in a variable-rate loan.
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