non-monetary

(noun)

Payment in the form of benefits, flex-time, time off, free or discounted parking, gym membership discounts, retirement plans, mentoring, tuition assistance, child care, or other non-cash option.

Related Terms

  • Non-monetary compensation

Examples of non-monetary in the following topics:

  • Non-Monetary Employee Compensation

    • Non-monetary benefits are essential to attracting a productive workforce.
    • It is standard practice in U.S. culture to offer basic non-monetary benefits to full-time, permanent employees.
    • Companies also use non-monetary benefits to increase and maintain employee morale and satisfaction.
    • Employers have several options with respect to non-monetary compensation.
    • The largest category of non-monetary compensation includes benefits.
  • Benefits and non-monetary compensation

    • Benefits and other forms of non-monetary compensation are becoming more appropriate forms of compensation for employees in today's workplace.
    • A benefit is a "general, indirect and non-cash compensation paid to an employee" that is offered to at least 80 per cent of staff (Employee Benefits Definition).
    • On average, 40 per cent of payroll is dedicated to non-cash benefits (Kulik, 2004).
    • If a company offers employees extremely high wages compared to other businesses in the industry in addition to non-monetary compensation, costs may increase at a faster rate than profit.
  • Involuntary Conversion

    • Unlike a voluntary sale, involuntary conversion of assets can involve an asset exchange for monetary or non-monetary assets .
    • Monetary assets consist of cash or cash-equivalent assets.
    • Non-monetary assets are not easily converted to cash, such as equipment.
    • An exchange between non-monetary assets should be analyzed to determine if the exchange has commercial substance.
    • For non-monetary asset exchanges without commercial substance, the expectation is that the exchange will not materially alter future cash flows.
  • Answers to Chapter 14 Questions

    • By the time monetary policy influences an economy, the economy is already growing, and the monetary policy causes the economy to grow quickly, creating inflation.
    • Monetary policy has an immediate impact on operating targets like the federal funds rates and non-borrowed reserves.
    • Over time, monetary policy influences the intermediate targets.
    • The Fed's monetary policy coincides with the business cycle.
    • Monetary policy is supposed to do the opposite and smooth out the business cycles.
  • Time Lags and Targets

    • The Fed cannot influence the monetary policy goals directly.
    • Unfortunately, three time lags hinder monetary policy.
    • Operating targets are the federal funds rate and non-borrowed reserves.
    • When the Fed uses open-market operations, changes discount policy, or alters reserve requirement, the Fed's monetary policy has an immediate impact on the federal funds rate and non-borrowed reserves.
    • Monetary policy can become ineffective in some cases.
  • Control of the Money Supply

    • A nation's money supply is determined by the monetary policy actions of its central bank.
    • A nation's money supply is determined by the monetary policy actions of its central bank.
    • While purchases of government securities prove to expand the total monetary base, the selling of government securities will ultimately contract a nation's monetary base.
    • An increase in reserve requirements would decrease the monetary base; a decrease in the requirements would increase the monetary base.
    • This is why they advocated a non-interventionist approach—one of targeting a pre-specified path for the money supply independent of current economic conditions— even though in practice this might involve regular intervention with open market operations (or other monetary-policy tools) to keep the money supply on target.
  • The Capital Account

    • The capital account acts as a sort of miscellaneous account, measuring non-produced and non-financial assets, as well as capital transfers.
    • Under the International Monetary Fund (IMF) definition, however, most of these asset flows are captured in the financial account.
    • Instead, the capital account acts as a sort of miscellaneous account, measuring non-produced and non-financial assets, as well as capital transfers.
    • The capital account can be split into two categories: non-produced and non-financial assets, and capital transfers.
    • Non-produced and non-financial assets include things like drilling rights, patents, and trademarks.
  • Measuring the Money Supply

    • Measures of money are typically classified as levels of M, where the monetary base is the smallest and lowest M-level: M0.
    • (The narrow money supply is an earlier term used in the U.S. to describe currency held by the non-bank public and demand deposits of banks, M1).
    • M0: In some countries, such as the United Kingdom, M0 includes bank reserves, so M0 is referred to as the monetary base, or narrow money.
    • MB: This is referred to as the monetary base or total currency.
    • Economists use M2 when looking to quantify the amount of money in circulation and trying to explain different economic monetary conditions.
  • Changes in the Monetary Base

    • If the Fed's balance sheet changes, subsequently, both the monetary base and money supply change.
    • Next, we substitute the monetary base formula into Equation 3 because the monetary base equals deposits held by depository institutions plus currency in circulation, or B = D + C.
    • After substituting the monetary base into Equation 3, we yield Equation 4.
    • Total Liabilities = Monetary base (B) + U.S.
    • Equation 6 shows how a change in the Fed's balance sheet affects the monetary base.
  • Introduction to Monetary Policy

    • Monetary policy is the process by which a monetary authority controls the money supply, often to produce stable prices and low unemployment.
    • A monetary authority will typically pursue expansionary monetary policy when there is an output gap - that is, a country is producing output at a lower level than its potential output.
    • By contrast, a monetary authority will pursue a contractionary monetary policy when it considers inflation a threat.
    • In response, the monetary authority may reduce the money supply and thereby raise the interest rate.
    • By controlling the money supply, monetary authorities hope to influence the rate of inflation.
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